Sustained Demand Can Rationalize Steel Prices
<span style="font-weight: 400;">Steel prices have been rising for the past four months. It is interesting to look at the data released in WPI items in which a number of categories, more than 30 of them related to steel, are tabulated and released on a monthly basis.</span> <span style="font-weigh
Published -
Dec 30, 2020 4:44 AM
Steel prices have been rising for the past four months. It is interesting to look at the data released in WPI items in which a number of categories, more than 30 of them related to steel, are tabulated and released on a monthly basis. The WPI for November’20 shows that prices of manufacturing of basic metals have gone up by 4.03% during August’20 and November’20. More specifically, prices for inputs into steel making having a weight of 1.41% has gone up by 9.0% during the period. The inputs include (as per WPI list) sponge iron/DRI, various categories under ferro silicon and metallic iron. The mild steel semi-finished steel has grown by 1.7%, pencil ingots (by induction furnace) by 7.3%, MS Long products by 4.9% (for construction and Infra), MS wire rods by 6.8% (for making wires and construction), structural items (angles, channels, structural steel, for fabrication) by 6.1%, MS Flats by 8.0%, HRC/Sheets (for tubes and pipes, cold rolling) by 8.3%, CRC/sheets by 8.4% (for automobile, consumer durables, furniture), GP/Coated (for boxes, consumer durables, roofing) by 8.7%, alloy steel wire rods(primarily for auto sector) by 1.6%, SS coils and sheets (architecture, building and construction and utensils) by 3.5% and pipes and tubes (transportation of water, gas and oil)