SEATTLE (Scrap Monster): The prices of steel are poised to surge higher from the beginning of next month, mainly on account of high input costs, said V.R. Sharma, Managing Director, JSPL. The industry executive was speaking on the sidelines of an event organized by the Indian Chamber of Commerce in New Delhi.
Sharma noted that coal is still priced at high levels of INR 17,000 per tonne. In addition, the prices of iron ore supplied by the Odisha Mineral Corporation have still not shown any signs of decline. According to him, the steel prices have bottomed out and that there is no chance whatsoever for further reduction. There will be upward price movement by primary players beginning 1st July, 2022, primarily due to elevated input costs, he added.
It must be noted that secondary steelmakers have already increased rebar prices by INR 2,000 to INR 5,500 per tonne over the past one week. As per market data, the prices of hot rolled coil (HRC) have declined from its peak of INR 76,000 per tonne recorded in May this year to INR 59,000-60,000 per tonne now.
JSPL executive noted that the industry is faced with lack of availability of coal by steelmakers, which is one of the major raw materials used to feed their captive power plants. A major share of coal supply is being diverted for power sector.