Responding to cost pressure and greater demand, domestic steel producers have raised prices by Rs 1,000-1,500 a tonne across products for January. Iron ore miners have increased prices by Rs 600 per tonne and so this increases the cost of production by Rs 1,000 a tonne.
With this, domestic steel players have raised prices for the fourth consecutive month in a market in which consumption is expected to pick up after the government announced a mega push for infrastructure projects. Stock prices of all steel firms were up on Thursday in anticipation of rise in demand for the commodity, mainly from the infrastructure sector, in coming months.
During October-December, long product producers such as JSPL and SAIL have recorded strong production figures, indicating a demand pick-up in infrastructure. JSPL recorded 30 per cent sales growth in the December quarter at 1.66 million tonnes compared with the same period in the previous financial year.