Steel firms breathe easy as raw material prices likely to stay range-bound

The upward momentum in steel production and consumption is expected to continue during the ongoing financial year

Prices of steel-making raw materials are likely to move in a narrow range during the financial year 2018-19 due to increased supply pressure from major producing countries.  

A recent study by ratings agency India Ratings and Research forecasts prices of steel-making raw materials, including iron ore and coking coal, to remain range-bound during the current financial year. The study estimates benchmark iron ore with 62 per cent Fe fines at Qingdao (China) to average at $65 a tonne for the current and next financial years. Similarly, coking coal prices (imports from Australia to China) are likely to average marginally lower