Steelmakers press for higher auto contract prices after three quarters

Spot steel prices have been rising both globally and at home since December; a hike of over 12% in the domestic market would have been the basis of negotiations for the upcoming contracts

Cost to automakers is set to go up with steel companies pressing for an increase in contract prices after about three quarters. But, it remains to be seen if the automakers pass on this hike to customers. Most carmakers have already announced a hike in prices which will come into effect from April.

Steel accounts for about eight per cent of the raw material cost for cars and utility vehicles, seven per cent in two wheelers and nine per cent in commercial vehicles.

Major steel companies – Tata Steel, JSW Steel and ArcelorMittal Nippon Steel India (AM/NS India) – have