- 23 Mar 2022
- ICICIdirect Research
STEEL PLAYERS TAKE PRICE HIKES DUE TO RISING RAW MATERIAL COSTS
News: As per media sources, India’s top steelmakers have announced rebar and hot rolled coil (HRC) price increases by around Rs.1,500-2,000/ tonne due to rising raw material costs. JSW Steel has decided to increase rebar prices by Rs.1250/tonne with effect from March 23, 2022 for end-March sales. SAIL has also increased HRC and cold rolled coil (CRC) prices by Rs.1500/tonne. Other top steelmakers will also be undertaking a hike in the coming days.
Views: The steel players have taken price hikes due to rising raw material costs, especially coking coal. Coking coal prices have climbed to US$ 650-700/tonne from just US$300/tonne a month ago. This is the fourth round of increase in March. Effective price for HRC is at Rs.72,500-73,500/tonne and CRC price is at Rs.78,500-79,000/tonne. Rebar price is at Rs.71,000-71,500/tonne. There is also the possibility of further price hikes, going forward.
Impact:Neutral