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Steel prices to rise on costlier inputs, demand

Steel prices may rise further this year on the back of improved demand and higher input costs of coking coal and iron ore.

Steel Authority of India (SAIL), Tata Steel, Essar Steel and JSW Steel have already hiked prices by Rs 1,500-2,000 a tonne in the last two months.

Prices for the basic grade are ruling at about Rs 30,000 a tonne (excluding excise), which is lower by Rs 10,500 from the all-time high in 2008.

Mr Jayant Acharya, Director, JSW Steel, said the improvement in demand for both flat and long products was expected to continue in the fourth quarter. “Though concerns over the cost push with regard to coal and iron ore remains, we expect to pass on a portion of the rise in input cost to the end-user as demand is still buoyant. Besides, the coal and iron ore beneficiation plant, which went on stream recently, will also ease cost pressure,” he added.

Mr Vikram Amin, Executive Director, Essar Steel, said, “While we expect prices to firm up, the key issues that need to be watched are the cost of raw materials, the rate of restocking and capacity utilisation levels.”

Source : The Hindu Business Line