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.)