Domestic steelmakers have hiked the prices of hot-rolled coil (HRC) and TMT bars by up to Rs 5,000 per tonne as the supply chain is being impacted amid the ongoing Russia-Ukraine conflict.
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.
Domestic steelmakers have hiked the prices of hot-rolled coil (HRC) and TMT bars by up to Rs 5,000 per tonne as the supply chain is being impacted amid the 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.
After the price revision, a tonne of HRC will cost around Rs 66,000, while the buyers will get TMT bars for about Rs 65,000 per tonne, the sources said on Friday.
"The war is impacting the supply chain at the international level leading to an increase in input cost. Coking coal is trading at $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, key steel-making raw material, a requirement from imports. While Australia remains the main buying destination, part of the requirement is met from countries like South Africa, Canada, and the US.
When asked about the impact of the conflict on domestic sectors including steel, Tata Steel CEO and MD T V Narendran 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."
Narendran, who is also 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 are used in consumer-friendly industries such as auto, appliances and construction, and real estate, among others.
The prices of 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.
While JSW Steel declined to comment, an e-mail query sent to JSPL, AMNS India, SAIL and RINL remained unanswered.