As the conditions in international markets are pushing up steel prices consistently for the past few days, recently the commodity has touched its all time high here in the local market. On Sunday, steel TMT bar prices touched the Rs 45,000 per tonne (excluding 18% GST) mark which is about 30 per cent higher than the level prevailing in the month of March 2020. Prices of 8 mm steel bars, which were at Rs 35,000 per tonne (excluding 18 per cent GST) before the lockdown, jumped to Rs 45,000 per tonne on Sunday.

 

 

 

 

Similarly, the cost of 10 mm to 25 mm bars went up from Rs 34,000 (excluding 18 per cent GST) to Rs 44,000 per tonne over the same period. Senior Vice President of Steel and Hardware Chamber of Vidarbha Rajesh Sarda told The Hitavada that the price rise is because of severe shortage of the iron ore in the international market. “As of now, there is a huge demand for the steel products because China is aggressively buying the commodity. On the other hand, countries like Brazil, which supply iron ore, are not supplying enough quantities of the commodity. These conditions are taking up the prices for the past few days,” he said. Sarda also said that the prices may further rise in near future as there are no signs of improvement in the raw material supply.

 

It is important to note that China is buying steel and iron ore in huge quantities from the international markets. Thus, many domestic suppliers have been engaged in exporting the commodities which is further creating a shortage of raw material here in the country. Past President of CREDAI Nagpur Chapter Prashant Sarode said that the current prices have caused a negative impact on the real estate sector.

 

“The sector was already bearing the brunt of lockdown and now the steep rise in prices of steel and cement are making the housing projects unfeasible. It is going to affect affordable housing projects as well other infrastructure projects in a big way,” he said. Secretary of CREDAI Nagpur Chapter Gaurav Agarwala said that the steel and cement price rise will increase cost of construction by about 150 per square feet. “This will put additional burden on the buyers. However, it is the right time to buy a household as many builders like us are offering attractive schemes for a limited period,” he said.