Steel Prices Go Up For The Second Time in Less Than a Month - Android

The prices of the locally-produced cold-rolled coil (CRC) of various grades of flat steel have increased for the second time… Read More

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The prices of the locally-produced cold-rolled coil (CRC) of various grades of flat steel have increased for the second time in less than a month, reported a national daily.

Industry players informed the media that the prices of steel have risen further by Rs. 3,500 per ton primarily due to the spike in the rates in the international market.

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So far this year, the prices of locally-produced CRC have increased by around Rs. 19,500 per ton or 12.3 percent. The newspaper report also detailed that the price of the benchmark local prime grade of 1.2 mm stands at Rs. 178,500 per ton.

The report further added that the local players have managed to pass the cost pressures on to the end customers as the price of raw materials has increased by 11 percent in terms of the rupee and by 13 percent in terms of the dollar.

The escalating local price of CRC is also a result of the increase in its international prices as a result of the growing global demand recovery post the ease in the COVID-19 lockdowns and vaccine drives.

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Another factor contributing to higher prices of CRC in the international market is the limited imports of CRC against the backdrop of the ongoing supply constraints which has led to an increase in cost and freight, thus compelling local players to charge a premium on it.

The international margin has improved to an average of $102 per ton so far versus $85 per ton in the December quarter.

A rapid recovery in the steel sector was witnessed in the local market after the decline in the COVID-19 cases. This was further facilitated by the government offering an amnesty scheme to the construction sector which has further boosted the demand for steel. The auto segment has also posted a quick and steep recovery while creating a higher demand for CRC.

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