The domestic steel demand is predicted to take a hit in the coming quarters due to “very excessive steel costs” and repeatedly rising fuel costs, in accordance to business consultancy SteelMint India.
Steel costs in India are buying and selling at an all-time excessive. While hot-rolled coil (HRC) is quoting in the vary of Rs 76,000-77,000 per tonne, cold-rolled coil (CRC) is costing between Rs 85,000-86,000 per tonne. Rebar worth stands at Rs 72,000-73,000 a tonne, SteelMint India mentioned on Thursday.
In the domestic market, costs of HRC in the primary week of March have been in the vary of Rs 68,000-69,000 a tonne, whereas CRC was at Rs 73,000-74,000 per tonne. Rebar was costing about Rs 67,500-68,500 a tonne.
SteelMint mentioned it “expects demand to be unfavorable in coming quarters on rising steel costs and better fuel costs, which can defer shopping for actions”.
The authorities on Thursday hiked petrol, diesel costs by 80 paise a litre every, the ninth enhance in 10 days, taking the entire hike to Rs 6.40 a litre.
Rising fuel costs will influence the logistics for the availability of steel gadgets which can additionally influence the demand, the consultancy mentioned.
According to SteelMint, domestic steel consumption is probably going to be at 98 million tonnes in April 2021-March 2022.
(Only the headline and film of this report could have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has at all times strived laborious to present up-to-date data and commentary on developments which can be of curiosity to you and have wider political and financial implications for the nation and the world. Your encouragement and fixed suggestions on how to enhance our providing have solely made our resolve and dedication to these beliefs stronger. Even throughout these troublesome instances arising out of Covid-19, we proceed to stay dedicated to protecting you knowledgeable and up to date with credible information, authoritative views and incisive commentary on topical problems with relevance.
We, nevertheless, have a request.
As we battle the financial influence of the pandemic, we’d like your help much more, in order that we will proceed to give you extra high quality content material. Our subscription mannequin has seen an encouraging response from lots of you, who’ve subscribed to our on-line content material. More subscription to our on-line content material can solely assist us obtain the objectives of providing you even higher and extra related content material. We consider in free, truthful and credible journalism. Your help via extra subscriptions can assist us practise the journalism to which we’re dedicated.
Support high quality journalism and subscribe to Business Standard.
Digital Editor