Firms raise steel prices on demand expectation

With post-monsoon construction about to take off, major producers of steel have announced a rise in prices across product categories.

At Mandi Gobindgarh, India’s largest steel market, the prices of cold-rolled coils and sheets have risen by about Rs 2,000 a tonne.

Those of billet and TMT have gone up by Rs 3,000-4,000 a tonne.

Another round of price rises may happen in the current financial year if demand rises as much as anticipated. There is a belief that domestic economic activity, in general, will be picking up, particularly in the roads, railways and housing sectors.

As if anticipation, prices of sponge iron, also an input in steel-making, have risen by around 17 per cent so far this month. After a stagnant first quarter, demand for it has been rising gradually.

Steel makers expect that the other input prices would also be moving up, given the possible rise in the economic activity.