Steel prices to rise further

MUMBAI: In line with global trend, domestic hot rolled (HR) steel prices are again set to rise by Rs 1,500 per tonne to Rs 26,000 levels by March. Producers say a rise in freight rates and cost of steel scrap and inputs like coke have led to this.
High grade HR coils are at $550 per tonne in the global market, while the domestic price level is $480-490.
While Ispat, Jindal and Essar Steel will raise prices by Rs 1,500-2,000 per tonne, integrated manufacturers like Sail and Tisco will effect a Rs 1,000-1,200 hike.
Passenger and commercial vehicle manufacturers, have accused manufacturers of inflating prices and asked for government help.
Avinash Guraksekhar, an auto analyst with ILFS Investmart, said the periodic increase in steel prices is squeezing the margins of automakers, who are not passing on the entire hike to customers for fear of a drop in demand.