Steel firms to weigh in input costs in talks for auto industry contracts

Input costs have skyrocketed between February-end and March due to supply chain disruptions due to the Ukraine crisis and volatile market

Steel companies are weighing the spiraling cost of raw material as they head for discussions with automobile companies for contracts starting April.

Usually, the average price of steel for six months is set as a benchmark for negotiations. This time the spike in raw material prices due to the Russia-Ukraine war is likely to shape discussions with auto companies.

“Our teams are in discussion with automotive companies and have apprised them of the situation in the market. Discussions for the next contracts have been initiated,” said Jayant Acharya, JSW Steel director – commercial & marketing.

“Various materials are impacting the