This is the second consecutive rise in steel prices in three weeks

Mumbai, Ta. 20 November 2020, Friday

India's steel mills have announced a short-term price hike in the wake of rising demand. This is the second price hike by mills in the last three weeks, market sources said. Rising demand for steel is signaling a recovery in the country's economy. Steel mills have again hiked the prices of products by Rs 50 to Rs 1,000 per tonne.

Earlier this month, steel mills had hiked the prices of hot rolled coils and cold rolled coils by Rs 1,000 to Rs 1,200 per tonne. Sources said the rise was mainly due to rising demand from the auto sector.

The auto sector consumes high grade steel and the recent festive season has seen an improvement in auto demand. In addition, there is a demand for steel from the infrastructure sector.

The price of hot rolled coil has gone up from around Rs 200 to Rs 2,000 per tonne while that of cold rolled coil has gone up to around Rs 2,000.

The recovery in the auto and other steel-consuming industries is likely to see a stabilization in steel prices, an analyst said. The price of steel ore has also gone up due to shortage of iron ore. However, prices of other raw material coking coal have been stabilizing.

In November 2017, after seeing around Rs 50 per tonne of hot rolled, the price dropped to Rs 2,000 at one stage. Since July this year, prices have gone up by Rs 200 to Rs 2,000.