Original After a volatile year when steel makers battled cheap Chinese imports, squeezed margins and a lull in demand in the second quarter, the New Year is expected to start on a good note.
Post two rounds of increases in September and October, steelmakers are set to raise prices again in January by around 5 per cent as domestic demand is robust and international prices have firmed up.
Raw material costs have also inched up with iron ore contract prices expected to settle about 8 per cent higher sequentially. Further, global coking coal prices too are expected to see a 20 per cent jump from the current levels.
In fact, prices for long products have already seen a 5-7 per cent jump in the last 10 days.
Moreover, India's third largest steel manufacturer JSW Steel has indicated that an upward revision is likely in the next month as international prices continue to rise.
Meanwhile galvanized steel maker Uttam Galva says it will raise prices by Rs. 2000-3000 per ton in January, though it does not expect margins to expand significantly due to price hikes.
Going forward as demand firms up with steel consumption expected to rise 13.6 per cent domestically. Analysts expect the upward bias in prices to continue so for those of you wanting to buy a car expect to shell out more.
Read more at: http://profit.ndtv.com/news/show/steel-prices-likely-to-rise-by-5-132000?cp
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