Steel Prices Hiked By Rs 5,000 Tonne On Global Rally

After a pause, prices of steel and iron ore are on the rise. Steel companies have increased prices by up to Rs 5,000 a tonne beginning April while state-owned iron ore producer, NMDC has hiked prices of lump ore by Rs 500 a tonne.
BY Realty Plus
Published - Wednesday, 07 Apr, 2021

After a pause, prices of steel and iron ore are on the rise. Steel companies have increased prices by up to Rs 5,000 a tonne beginning April while state-owned iron ore producer, NMDC has hiked prices of lump ore by Rs 500 a tonne. Steel producers said that prices of hot rolled coil – a benchmark for flat steel (used in automobile, domestic appliances and construction) – have been increased by Rs 4,500-5,000 a tonne; prices of long steel (used in infrastructure and construction) have increased by up to Rs 3,000 a tonne. The last time the price of steel increased was in January when it touched an all-time high. However, it came off those highs as China moved into the New Year holiday season on pressure from end users in the domestic market. Producers rolled over prices in February and in the early part of March, prices dropped by about a Rs 1,000 a tonne. But sentiments started improving towards the middle of March and prices in the trade segment showed an upward trend. The trend is across the value chain. An India Ratings report said, international iron ore prices in mid-March were at $195 a tonne, $8 a tonne lower month-on-month, but still at elevated levels with prices in mid-March 2021 being 81 per cent higher year-on-year. That played out in the domestic market as well. NMDC had kept prices unchanged from February to beginning March. But effective March 21, prices of lump ore and fines were revised upwards. Analysts expect, prices to remain strong in the months ahead on the back of domestic demand and cues from China. Domestic steel consumption over April 2020-February 2021 at 79.2 million tonnes was down by only 8.8 per cent despite Covid-19, reflecting the improving end-use demand, the India Ratings report mentioned. Steel prices in the domestic market have been on an uptrend since July last year and that reflected on steel stocks. Globally, measures in China are expected to lend support to prices. China is looking to reduce its steel output to curb pollution and according to World Steel Association, its crude steel output stood at 83 million tonnes in February, which was lower than 90 million tonnes in January, even though year-on-year it was higher by 10.9 per cent.