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TATA Metallic sees dramatic shift on quarterly pricing for coke and iron ore

BS reported that some Indian steel makers said that changes in pricing dynamics for iron ore and coking coal will put their business cycle out of sync.

Mr Harsh K Jha MD of TATA Metaliks said that "The business cycle for a steel company, from the time it buys raw material to the time it sells the finished product, is seven to eight months. The industry will face dramatic change if raw material prices are going to move to a quarterly pricing system."

He added that "Negotiations for annual benchmarking take about six months, so if the discussions now have to take place on a quarterly basis there will be chaos."

(Source: Business Standard)