The rising prices of steel — which is widely used in sectors like construction, auto, consumer goods, etc — will not affect the demand in the domestic market, Tata Steel CEO and Managing Director T V Narendran has said.
He also said that the current prices of steel in India are higher if compared with rates prevailed a few months back but the same are lower in comparison to the rates in the international markets.
“Yes, prices are higher compared to what they were in the past but lower compared to anywhere in the world. I don’t think it should affect demand,” he told PTI. Narendran made the statement while replying to a question whether surging prices of steel will affect the immediate demand for steel by the Indian consumers.
The CEO further said if one takes a look at the prices of hot rolled coil in the US, it is at USD 1,500/ tonne, in Europe it’s close to 1,000 euros per tonne. “So, I think the steel users in India have the best available prices in the world.” The exporters of steel-intensive products are in a good position as the prices in India give them a chance to be competitive in the global market, he said.
In India, steel is trading at an all-time high. In May 2021, the steel makers raised prices of Hot Rolled Coil (HRC) by Rs 4,000 to Rs 67,000 per tonne and Cold Rolled Coil (CRC) by Rs 4,500 to Rs 80,000 per tonne.
HRC and CRC are flat steel used in steel-consuming industries such as auto, appliances and construction.
The prices of vehicles, consumer goods, and construction cost are bound to be impacted by the rise in steel prices as steel is a raw material for these sectors, an expert said.
Meanwhile, last week on Wednesday, country’s largest iron ore miner NMDC also hiked the prices of lump ore by Rs 700 to Rs 7,650 a tonne per tonne, and fines by Rs 1,500 to Rs 6,560 per tonne.
Iron ore is a key raw material used in steel making. Any change in its prices has a direct impact on the rates of steel.
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