Monday, March 1, 2010

Raw Material Prices Put Indian Steelmakers Under Pressure

Rising raw material prices are putting Indian steel prices under pressure and the country’s big steel companies are currently looking at putting up prices.

Iron ore prices have surged to $142 a tonne for exports to China and onlookers suggest that export prices are a good indicator of prices to be charged domestically. Meanwhile coking coal contract prices look set to be renegotiated with prices as much as 70-80 per cent higher than last year.

Last month India increased its export duty on iron ore from 0 to 5 per cent for iron ore powder and from 5 per cent to 10 per cent for iron ore lumps.

JSW Steel are said to be looking at making a decision in the next couple of days, while Bhushan Steel are looking at price increases of around Rs1000 a tonne.

US steelmakers are said to have raised prices by around $50 (Rs2300) a tonne after increases in raw material prices.

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