Steel prices may rise next fiscal
New Delhi: Steel prices in the country are set to go up on account of rising input costs and demand for the commodity, an industry expert said here on Wednesday. “Cost of raw material, including iron ore and coking coal is expected to go up by 25-30 per cent in the next financial year from the current level putting pressure on steel makers to pass on the burden to consumers,” Tata Steel Chief of Procurement Amitabh Panda told reporters.
Unlike the West, where steel demand is still recovering from the impact of the economic slowdown, he said, in India, steel producers would be able to pass on the input cost pressure to the consumers as off-takes are steadily growing. “Indian steel producers have to price their products higher in the next fiscal,” Panda added.
He further said the rising raw material costs are of “huge concern for bottom lines” of domestic steel firms and the 8-9 per cent growth in steel consumption would help ease pressure on manufacturers’ margins. (Agencies)
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