Rising production costs of steel iron: However, demand from the consumer sector also rose

- According to World Steel Association sources, demand for steel in India is likely to reach 1 million tonnes.

The recent rise in coal and gas prices has pushed up the cost of steel and cement production, leading to higher steel and cement prices. Rising demand for steel and cement has also weighed on market prices. Coal prices have risen sharply in the domestic and world markets in a short period of time. Coal prices rose by about ડો 60 a tonne in the late September quarter, and are expected to rise by another થી 80 to ટ 100 a tonne in the current quarter, which ends in December. After rising to Rs 1,150 per tonne in the June quarter, the price rose sharply to Rs 19,150 per tonne in the September quarter and is now projected to rise further to Rs 5,000 to Rs 6,000 per tonne in the December quarter.

Recent factory output figures in China have been weak. Such figures have been disappointing in October as well as more recently in October. This had an effect on steel prices. In this context, the PMI index has come down from 8.30 to around 8.30. A score within 30 points indicates weakness. Factory activity in China has recently slowed down due to renewed corona infestation in China, declining exports, various controversies in the property market and increased campaign to reduce pollution. Meanwhile, global crude steel production fell by about 5-7 per cent in September to 12-13 lakh tonnes. During this period, such production in China has shown a decline of 21 to 5 per cent. Meanwhile, total global demand for steel is projected to grow by about 2.50% this year. According to sources in the World Steel Association, the total demand for steel in India is expected to cross 1,000 lakh tonnes this year in 2021.

The country's steel-iron market and industry have recently seen a reversal of trends. Earlier, the Corona infestation and lockdown slowed down construction activity and adversely affected steel demand. However, now that the Corona infestation has subsided and the process of reopening instead of lockdown has started, the turmoil in the construction sector is on the rise again and this has led to indications of resumption of inquiries and demand in the steel-iron market. Recently, there have been reports of price hikes by some steel producers. In the automotive industry too, the recent slump in the Corona era has led to a surge in demand and demand from automakers in the steel market. As per the instructions received in the first week of November, some steel producers have hiked the prices of long and flat steel products by Rs 2,000 to Rs 300 per tonne. After retaining steel prices for the quarter ended September, October saw a rise in prices from around Rs 1,200 to Rs 2,000 per tonne, and now there are indications that such a rise could be seen in November as well.

Despite rising domestic steel prices, imported steel prices are still higher in terms of domestic import costs, market insiders said. According to experts in the field, the overall price of hot rolled steel is likely to increase by 3 to 4 per cent this year and the average price of such steel is estimated to be Rs 5,000 to Rs 6,000 per tonne while the price of TMT steel will increase by an average of Rs 4 to 5 per tonne this year. The calculation is shown to be from 200 to 300. China's HRC prices are expected to rise by 3 to 4 per cent this year to an average of થી 50 to ટ 200 per tonne, experts said. These prices are calculated on the basis of FOB. The FOB price of China's hot-rolled coil, which averaged around ડો 50 per tonne in September, has now come down to around ડો 80 a barrel.