Amid demand revival, steel companies hike prices by Rs 2,000/T

New Delhi, Oct 5 : In a sign of economic activity gradually picking pace in the unlock phase, steel companies have increased the price of the metal for the fourth month in a row in October on the back of demand revival and firm price trends in the overseas market.
Benchmark hot rolled coils (HRC) prices have increased by Rs 1,000-2,000 per tonne for October deliveries to Rs 43,000-43,500 per tonne whereas (cold rolled coil) CRC prices stand at Rs 52,000 per tonne.
The price rise in October is contrary to expectations of a decline in prices in China, where flat steel prices have dropped by four per cent in September 2020.
The price has also increased for long steel products used in real estate projects, but the price rise there is moderate compared to the HRC prices and long products are still priced about Rs 1,500 per tonne lower than flat products.
With the price rise in October, HRC prices are now higher than pre covid price line of Rs 42,000 per tonne.
On a cumulative basis, steel mills have hiked HRC steel prices by Rs 7,000-7,500/tonne since July, 2020. The improved demand outlook is driven by a strong recovery in automotive, consumer durables and other white goods.