Domestic steel makers have hiked the prices of hot-rolled coil (HRC) and TMT bars by up to Rs 5,000 per tonne as supply chain is being impacted amid ongoing Russia-Ukraine conflict.

 

According to industry sources, the prices have been increased in the past few days and are expected to go up further in the coming weeks with the crisis deepening between the two countries.

 

“The war is impacting the supply chain at the international level leading to an increase in input cost. Coking coal is trading at USD 500 per tonne,” an industry executive said adding that it is a rise of about 20 per cent compared to the rates a few weeks ago.

 

India meets 85 per cent of its coking coal, a key steel making raw material, requirement from imports. When asked about the impact of the conflict on domestic sectors including steel, Tata Steel said, “Both Russia and Ukraine are manufacturers and exporters of steel in addition to being suppliers of raw materials including coking coal and natural gas. The unfolding Russia-Ukraine crisis will impact supply-demand dynamics, input costs and the overall global economy.” A member of the global industry body the World Steel Association, further said, “We are continuously monitoring the evolving situation and have contingency plans in place to ensure our customers and stakeholders remain unaffected.”

 

HRC and TMT bars used in consumer-friendly industries such as auto, appliances and construction, and real estate, among others.

 

The prices of the houses, vehicles and consumer goods are bound to be impacted by the rise in steel prices as steel is a raw material for these sectors, an expert said.

 

Source: /realty.economictimes.indiatimes.com/