‘Prices are expected to rise further in the coming weeks with the crisis deepening between the two countries’
‘Prices are expected to rise further in the coming weeks with the crisis deepening between the two countries’
Domestic steel makers have raised the prices of hot-rolled coil (HRC) and TMT bars by up to ₹5,000 per tonne as supply chains are being impacted amid the ongoing war between Russia and Ukraine.
According to industry sources, prices have been increased in the past few days and are expected to go up further in the coming weeks with the crisis deepening between the two countries.
After the price revision, a tonne of HRC would cost about ₹66,000, while buyers would get TMT bars for about ₹65,000 per tonne, the sources said on Friday.
“The war is impacting the supply chain at the international level, leading to an increase in input cost. Coking coal is trading at $500 per tonne,” an industry executive said, adding that it was an increase of about 20% compared with the rates a few weeks ago.
India meets 85% of its requirements of coking coal, a key steel making raw material, from imports. While Australia remains the main buying destination, part of the requirement is met from countries such as South Africa, Canada and the
U.S.
When asked about the impact of the conflict on domestic sectors including steel, Tata Steel CEO and MD T V Narendran said, “Both Russia and Ukraine are manufacturers and exporters of steel in addition to being suppliers of raw materials including coking coal and natural gas. The unfolding Russia-Ukraine crisis will impact supply-demand dynamics, input costs and the overall global economy.” Narendran, who is also a member of the global industry body the World Steel Association, further said, “We are continuously monitoring the evolving situation and have contingency plans in place to ensure our customers and stakeholders remain unaffected.” AMNS India Chief Marketing Officer Ranjan Dhar, “The current Russia-Ukraine issue has put the supply chain out of whack and all the commodity prices are shooting up. As a result, the cost structure of steel producers globally is going through a major change. We are monitoring the situation and expect the clarity to emerge soon.” HRC and TMT bars used in consumer-friendly industries such as auto, appliances and construction, and real estate, among others.
The prices of the houses, vehicles and consumer goods are bound to be impacted by the rise in steel prices as steel is a raw material for these sectors, an expert said.
While JSW Steel declined to comment, an e-mail query sent to JSPL, SAIL and RINL remained unanswered.
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