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Steel set to get costlier by 10-20% for auto manufacturers amid recovery

Though steel companies had to wait to finalise prices, the wait may have proved advantageous for them. Prices have been on an upswing since the country started unlocking

A crane operator lifts up a finished steel coil at the storage and distribution facility of German steel maker ThyssenKrupp in Duisburg, Germany. Photo: Reuters

The pick up in the auto sector has come after a while. Rao said that the sector had recovered to almost 80 per cent of its best quarter which was the fourth quarter of 2018.

Ishita Ayan DuttAditi Divekar Kolkata/Mumbai
Steel is set to become costlier by 10-20 per cent for auto manufacturers as steel producers conclude contracts with them.

JSW Steel has already finalised some contracts and some are still in the pipeline. The company's Joint Managing Director and group Chief Financial Officer, Seshagiri Rao, said, prices would ne reset from October 1. “The average of the last six months will be the price for the coming months,” he said, while indicating a price increase of 10-15 per cent.

Tata Steel has concluded contracts with most auto companies and has increased prices by 15-20 per cent. While AM/NS India

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First Published: Oct 29 2020 | 3:41 PM IST

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