Steel prices of hot rolled coils (HRCs) and rebars, which include construction steel, are witnessing a 2 to 3 per cent increase, in the range of ₹1,500-2,500 per tonne on the back of a higher demand in Europe, supply concerns from China and the rise in prices of Australian coking coal. More than two price hikes have been effected since March.
Further price hikes have not been ruled out either, and steel companies indicate they could renegotiate contracts in the coming days.
Market sources say the hikes have come into effect from March 23; although officials at Indian steel-majors say hikes are expected April 1 onwards only. State-owned SAIL has reportedly hiked prices by ₹1,500 per tonne for HRC and cold rolled coil offerings, say sources. Meanwhile, others such as Jindal Steel and Power Ltd (JSPL) and JSW is likely to effect similar hikes April 1 onwards.
The effective price of construction steel is around ₹74,000–75,000 per tonne (GST not included), while HRC is around ₹80,000 per tonne. On the other hand, steel plate prices are hovering at around ₹82,000–84,000 per tonne.