Steel prices hit record highs in Indian market

Domestic steel prices hit an all-time high, putting more pressure on car and consumer durables as demand is beginning to recover from the pandemic.

Hot rolled coil (HRC) prices - a key indicator of flat steel price trends - rose on average to their highest level of £ 58,000 per tonne, according to Thursday's report released Thursday.

Flat products consumers such as auto and durable goods manufacturers have already announced price increases to offset higher production costs. Prices for cars, commercial vehicles and agricultural machinery are likely to rise 1-4% this month, while prices for home appliances such as TVs, refrigerators and washing machines could rise by as much as 10%.

Industry bodies representing these sectors, medium and small enterprises, as well as Union Minister Nitin Gadkari, complained to the Prime Minister's office in December about repeated increases in steel prices, which are affecting production, consumer demand and the implementation of infrastructure projects.

Steelmakers have regularly raised prices over the past 15 weeks. Local steel prices change with world average prices, which is influenced by demand from China.

The Chinese government's $ 550 billion stimulus to revive the economy has boosted the country's appetite for steel at a time when steel exporting countries such as Japan and South Korea have cut production. This mismatch between supply and demand has led to a sharp jump in global steel prices.

“We are very optimistic about steel prices for the next two quarters. Raw material prices have been on the rise over the past few months. Prices for iron ore, the main raw material for the steel industry, have risen more than 100% in the past few months, ”said Pankaj Mulhan, CEO of ESL Steel Ltd.

“We anticipate further increases in steel prices in the coming months until the raw material shortages and price issues are resolved.”

While domestic steelmakers are making sure that prices remain below the cost of imported steel, the recent price hike resulted in domestic steel gaining 6% for the first time since April, compared to imports from South Korea and on par with China.

However, given that imports will last until the June quarter, producers have become confident that imports do not threaten domestic sales.

“Domestic HRC prices are up another £ 2,750 per tonne (5%) from the previous week as the main