Rise in Input Cost Raises Steel Prices Immensely by Rs 2,500 per tonne

On Thursday State-owned steel major SAIL announced a hike in prices of its commodities by up to Rs 2,500 a tonne due to huge rise in input cost.

While SAIL Open Golf Tournament in New Delhi Steel Authority of India Ltd Chairman S K Roongta said, “We have increased prices of our products in the range of Rs 2,000-2,500 a tonne mainly due to rise in raw material prices.”

The prices have increased in the country from April 1.

He said that the domestic steel rates have to follow the rising trend as the prices have hiked due to the higher iron ore and coking coal supply contracts between the steel makers and international mining firms.

Steel Minister Virbhadra Singh said, “There has been a spurt in steel prices in the domestic market recently but it is a temporary phenomenon and at present there is no inflationary concern.”

The domestic steel producers such as Tata Steel, Essar Steel, JSW are expected to bring in effect the price hike by SAIL.