Steel, fuel prices to impact domestic steel demand in coming quarters: SteelMint

The domestic steel demand is expected to take a hit in the coming quarters due to “very high steel prices” and continuously rising fuel prices, according to industry consultancy SteelMint India.

Steel prices in India are trading at an all-time high. While hot-rolled coil (HRC) is quoting in the range of Rs 76,000-77,000 per tonne, cold-rolled coil (CRC) is costing between Rs 85,000-86,000 per tonne. Rebar price stands at Rs 72,000-73,000 a tonne, SteelMint India said on Thursday.

In the domestic market, prices of HRC in the first week of March were in the range of Rs 68,000-69,000 a tonne, while CRC was at Rs 73,000-74,000 per tonne. Rebar was costing about Rs 67,500-68,500 a tonne. SteelMint said it “expects demand to be negative in coming quarters on rising steel prices and higher fuel prices, which may defer buying activities”.

The government on Thursday hiked petrol, diesel prices by 80 paise a litre each, the 9th increase in 10 days, taking the total hike to Rs 6.40 a litre. Rising fuel prices will impact the logistics for the supply of steel items which may also impact the demand, the consultancy said. According to SteelMint, domestic steel consumption is likely to be at 98 million tonnes in April 2021-March 2022.