Tata Steel Says Rising Steel Prices Unlikely to Affect Domestic Demand

SEATTLE (Scrap Monster): TV Narendran, CEO and Managing Director, Tata Steel said that the surging steel prices are unlikely to affect the domestic demand for the material. Incidentally, steel is widely used by various sectors, including construction, automotive and consumer goods sectors.

Obviously, the steel prices in the country are currently at elevated levels, when compared with the price levels that prevailed a few months back. At the same time, they are very much lower when matched with international steel prices.

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The steel prices in the country are much lower when compared with any other major steel markets of the world. For instance, the prices of hot rolled coils (HRCs) are at higher levels of $1,500 per tonne in the U.S., whereas the prices in Europe too are closer to $1,000 euros per tonne. When compared with these, Indian consumers have the best available prices, said Narendran. It must be noted that the HRC prices in the country currently stands at INR 67,000 per tonne.

Any rise in prices of iron ore will have direct impact on steel prices, as they are the key raw material used in steelmaking in the country. On the other hand, surging steel prices will lead to price hikes in vehicles, consumer goods and new buildings.