- Escalation likely to be Rs 5000 per ton
The impact of war between Russia and Ukraine will affect the steel places in the country. The war has paralysed the supply of steel due to the war. As a result, the steel producers hot rolled coil and TMT bar prices by more than Rs 5000 per tonne. The cost is going to increase more depending on the progress of the war. Currently HRC steel costs Rs 66000 per ton, while the TMT bars prices have been put at 65,000 a ton. The supply-chain mechanism has been affected by war at global level leading to jacking up the steel prices by 20 per cent, according to an expert from steel industry.
The price of coking coal, used in manufacture of steel, now costs US $ 500 a ton. India meets its coking coal demand 85 per cent by importing it from overseas. Majority of the coking coal is supplied by Australia. However, South Africa, Canada and the USA also export it to India. Russia and Ukraine supply natural gas, coking coal and steel to India. Because of the war situation, these prices have increased. As far as possible, plans are being drafted to save the consumers from the inflationary impact, according to Tata Steel CEO TV Narendran.
