Steel prices expected to rise by Rs 1000 a tonne

According to a leading business daily, domestic steel prices are expected to rise by Rs 1000 per tonne in April, preceded by the previous hike on March 15, of the same amount. Producers are  seeing a rise in demand for steel products in various segments.

Companies have raised steel prices by 70% since the imposition of MIP on January 16, for supporting the sector. Nevertheless, a price hike of Rs 3000 per tonne in February was taken back as the industry was not in a position to absorb the price hike.

However, producers feel domestic demand is expected to rise due to the boost given by government to infra projects and higher consumer demand in construction and auto segment. Also, producers feel consumers are in back in position to absorb any price hike.

In past few months India has emerged as net exporter of steel as domestic demand was hindered by demonetisation, while assembly elections in key states delayed various projects, and this forced producers to export alloy to maintain margins.

Rising capacity utilisations supported by frequent price hikes will help the steel sector to regain growth momentum in the coming months.