Inputs costs, demand seen lifting India steel price

Rising costs of iron ore and other inputs as well as strong demand will likely push up Indian steel prices over the next six months, despite government attempts to contain them, industry officials and analysts said.

Tata Steel has already raised hot-rolled coil prices twice this year and cold-rolled coil prices once, and smaller firms such as JSW Steel, Bhushan Steel, Ispat Industries and Essar Steel have followed suit.

“If you take $700 (per tonne) as the base, prices are going to go up by 20-25 percent.”

After Steel Minister Ram Vilas Paswan expressed concern over prices earlier this month, steel makers agreed to cut prices on some products by up to $25 per tonne, but the cuts are unlikely to be sustained.

Iron ore prices are rising internationally. Brazilian mining giant Vale secured price rises of 65 percent and higher for the iron ore it sells to major Asian steel mills.

                                                                                    Source: www.reuters.com

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