Steel prices in India may go up for the third time in a month – a rare instance -as companies pass on the increase in iron ore rates.
According to sources, the third hike may take place on March 1. The increase will be of Rs 1,000 a ton, taking the total increase within a span of 30 days to Rs 2,750 a ton. The latest round will take price of hot rolled steel to Rs 44,200 a ton.
“Such an increase has rarely happened, it hasn’t taken place in the last eight years,” an industry official said.
Prices were hiked, by Rs 750 a ton, for the first time in the first week of February. The second increase, of Rs 1,000 a ton, came in the third week of the month.
The latest increase in steel prices comes after three consecutive months of softening rates in India, and the world over. Since November, prices had crashed, especially because of the China factor.
Demand in China, the world’s largest steel market, has softened since November, even though production has also been cut.
But an accident in a Brazilian iron ore mine owned by Vale SA, the world’s largest producer, pushed up prices of the raw material. According to reports, the accident in a dam will impact about 70 million tons of iron ore production.
This has led to an increase in steel prices in the global market.