Cars and home construction to become costlier in the wake of the rising steel prices

Steel prices in India have been at an all-time high over the last few months following supply shortages in Australian coking coal

New Delhi: The price of  rebars, hot-rolled coils and cold-rolled coils – are set for a hike this month pushing the costs of automobiles and home construction upwards.

While rebars and hot-rolled coils are expected to see around ₹3,000 per tonne price hike (up 2-2.5 per cent), steel-mills have asked for ₹10,000–11,000 per tonne price hike from automakers during contract negotiations.

Steel prices in India have been at an all-time high over the last few months following supply shortages in Australian coking coal. Floods in Australian mines  and surge in  other input costs like iron ore, coal, refractories, graphite electrodes, and energy costs  are said to be the reason for the rise in prices.

Steel Ministry had earlier asked Indian steel mills to offer discounts to MSMEs. Accordingly, around ₹2000–3000 per tonne as discount was offered to small scale industries .