Steel firms hike prices by Rs 2,000 a tonne in 10 days on demand spike
03/08/2020
Kolkata, aug 2: Steel companies have increased prices by about Rs 2,000 a tonne during the past 10 days, on the back of an increase in domestic demand and international prices, taking it to near-pre-Covid levels.
There have been two rounds of increase since the end of July. Industry sources said, in the two rounds that have happened, prices have increased by about Rs 2,000 a tonne. Jindal Steel & Power Ltd (JSPL) managing director, V R Sharma, said that the market had bottomed out. "There have been two increases since the end of July.
In the last two weeks, pellet and iron ore prices have both increased by about $10 a tonne and scrap prices by $25-$30 a tonne, he added. So higher input cost is an additional factor driving prices. Industry sources pointed out after the latest round of increase in August, prices would be lower from March levels by about Rs 1,000 a tonne. JSW Steel director-commercial & marketing, Jayant Acharya, said, "The gap between international domestic price was 7-8 per cent. Over July and August, we have been able to cover 6 per cent. But we are still below international prices. Imports of hot rolled coil (HRC) from China are at $500-510 a tonne and domestic prices are still below that level."
"Prices in the domestic market are increasing because there is a demand pull and internationally prices have gone up.
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