Steel prices jump by Rs 7,500 per tonne

Source: The Hitavada      Date: 28 Dec 2017 10:02:14


Business Bureau,

STEEL prices that were witnessing a downturn till the recent past, have all on a sudden started climbing up due to several reasons. The prices saw a jump of about Rs 7,500 per tonne in a span of last 60 days.

On December 27, the 8 mm TMT bar prices unexpectedly jumped and touched a range between Rs 39,000 and Rs 39,500 per tonne (excluding 18 per cent Goods and Services Tax) as compared to its price range of Rs 31,500 to Rs 32,000 per tonne in November (excluding GST).

Rajesh Lakhotia, President of the Steel and Hardware Chamber of Vidarbha while talking to The Hitavada on Wednesday attributed the hike to mainly three reasons. “Firstly, the raw material cost has gone up during the period. Secondly, there is demand for the commodity on account of the Governmnet’s spending on infrastructure and development projects. Besides, there are signs of price consolidation at the international level which is further boosting the steel prices,” he said.

Similarly, the 10 mm to 32 mm TMT bar prices were being quoted at Rs 38,000 to Rs 38,500 per tonne (plus GST) on December 27, compared to November at Rs 30,500 per tonne to Rs 31,000 per tonne (plus GST). Lakhotia said that the phenomenal rise in demand was not benefiting the local rolling mills. A large portion of the orders was going to big steel producers like SAIL and Tata Steel. The big steel producers were taking advantage of the situation and increasing steel prices two or even three times in a month even though there was a thin demand in the local markets.

During the recession period, SAIL would revise prices once in one or two months. The steel prices shooting up at a short notice was not beneficial for the steel traders, he said. There should be a balanced policy to help traders and local rolling mills. The Government should devise a policy stating that some portion of steel for infrastructure projects should be sourced locally, he suggested.