Steel prices hit all time high of Rs 66,500/tonne
   Date :03-Mar-2022

steel
 
 
Business Bureau :
 
THE fallout of the Russian invasion on Ukraine has had a serious impact on steel prices in the country. Steel prices have jumped by Rs 4,000 to Rs 5,000 per tonne in the domestic market within the past 6 days as the prices of raw material used in steel manufacturing have escalated to new highs. The commodity has touched its all time high in the local market. The steel TMT bar prices by main or primary producers like Tata Steel, Jindal Steel and Sail touched the Rs 66,500 per tonne (excluding 18 per cent GST) mark which is about 10 per cent higher compared to 6 days ago. The main or primary producers prices of 8 mm steel bars, are being quoted at Rs 66,500 per tonne. Similarly, the cost of 10 mm bars is at Rs 65,500 per tonne (excluding 18 per cent GST) and 12 mm to 25 mm bars to Rs 64,000 per tonne. Currently, the local or secondary producers prices of 8 mm steel bars is being quoted at Rs 61,500 per tonne (excluding 18 per cent GST), 10 mm steel bars at Rs 60,500 per tonne and 12 mm to 25 mm at Rs 59,500 per tonne. The price difference of main and local steel producers is the quality and manufacturing process involved in making steel products.
 
The main steel producers use blast furnace whereas the local producers use induction furnace process to make steel products. Vidarbha’s Rajesh Sarda, Senior Vice-President of Steel and Hardware Chamber told The Hitavada that the price rise is mainly due to the Russian invasion of Ukraine. “Both the countries are big suppliers of finished steel products and raw material like coking coal and iron ore in the international market. The supplies from these two countries have stopped due to the fighting and sanctions imposed by other nations. There is uncertainty as and when the supplies will resume. This has escalated the prices of steel products to such high levels,” he said. Apart from this, the raw material prices like iron ore and coal have sky rocketed due to supply constraints thus pushing up the steel prices in the country, he pointed out.
 
The prices of raw material used in manufacturing steel like iron ore has steeply moved upwards. The iron ore is being quoted at Rs 12,000 to Rs 13,000 per tonne as compared to earlier prices at Rs 7,000 to 8,000 per tonne. Similarly, the coal prices have shot up and are being auctioned at Rs 10,000 per tonne compared to Rs 4,000 to Rs 5,000 per tonne. The imported coal has also witnessed surge in prices and it is being quoted at Rs 18,000 to Rs 20,000 per tonne as compared to Rs 7,000 to Rs 8,000 per tonne, he added.
 
Sandeep Agrawal, Director of Mahalaxmi Trading Corporation said, “As of now, due to the sudden price rise in steel prices has affected the demand. The biggest impact will be on infrastructure projects which use steel in huge quantities like bridges, fabrication units and to some extent building industry.” “Everything depends on the movement of prices in the international market. There is uncertainty in the market on the supply front. Looking at this challenging situation, some of our buyers are buying as much as they can as per their buying capacity. We will have to wait and watch on how things unfold in the near future,” Agrawal added.