Steel prices increased by 5 per cent to hit a three-month high of Rs 56,900 per tonne in January, according to SteelMint.
In its latest report, the research firm attributed the rise to “export duty removal and rise in raw material prices”.
According to SteelMint data, the price of per tonne hot rolled coil (HRC) was Rs 56,000/tonne in November. The steel makers in December slashed it to 53,950 and then revised prices upward in January to Rs 56,900 per tonne.
Prices of coking coal have risen in January to USD 310/tonne from USD 279 in December 2022, it said.
India remains dependent on imports to meet over 85 per cent of its coking coal requirements.
The rates of iron ore have also gone up in the country. NMDC, the largest producer and supplier of iron ore, has hiked the rate of the mineral by Rs 500 to Rs 3,410 per tonne.
On its outlook for prices of steel and its raw materials, SteelMint said: “Australian coking coal prices are likely to remain stable or may even rise in January on healthy demand and weather-related disruptions in Australia. The cost-push is also encouraging the price hike from steel mills”.
Steel is one of the most widely used materials, which finds application in sectors like construction, real estate, automobile, defence, shipping etc. Any movement in the rates of the alloy impacts the entire value chain.
Six months after the imposition of the export duty on May 21, the government has removed the levy on steel items to nil with effect from November 19, 2022.