Steel prices gain Rs 2,000 per tonne in last 20 to 25 days
02 Dec 2020 11:06:35
Business Bureau :
As the markets are on the path of recovery from the COVID-inflicted losses, prices of some of the commodities are showing an upward trend. Steel is one such commodity which has registered a considerable hike in the past 20 to 25 days. Prices of 8 mm steel bars that were at Rs 38,500 per tonne (excluding 18 per cent GST) before Diwali have jumped to Rs 40,500 per tonne on Tuesday. Similarly, the cost of 10 mm to 25 mm bars went up from Rs 37,500 (excluding 18 per cent GST) to Rs 39,500 per tonne over the same period.
Moreover, the market observers are expecting the prices to further climb up in coming days as construction activities are gaining momentum. Market experts attribute the rise in prices to various reasons ranging from increased demand for steel in the domestic markets to international parameters. Senior Vice-President of Steel and Hardware Chamber of Vidarbha Rajesh Sarda said that there is demand and supply mismatch of steel in the international market. “The prices are flying high in the international markets as China is buying huge quantities of iron ore which has eventually created a shortage of raw material for steel manufacturers,” he clarified. He said that most of the steel manufacturers of the region are buying raw material at a higher level as compared to prices prevailing 15 to 20 days back. Sarda urged the Government to take steps to control prices hinting at initiating measures to bring down prices of iron ore.
“The policy makers should restrict export of iron ore so that the domestic markets could get enough of it. I hope this step will bridge the gap between demand and supply of the raw material and steel prices will come down,” he felt. Recently when the Governments lifted lockdown imposed due to novel coronavirus, construction activities including work on mega projects have resumed. Apart from this, builders and developers and others have also started work on their respective sites after a long gap. This has generated good demand for steel products and other material.