Steel prices soar as conflict between Russia and Ukraine hits supply chains

“Prices are expected to rise further in the coming weeks as the crisis between the two countries deepens.”

“Prices are expected to rise further in the coming weeks as the crisis between the two countries deepens.”

Domestic steelmakers have increased prices for hot-rolled coils (HRC) and TMT bars by up to ₹5,000 per tonne as supply chains are impacted by the ongoing war between Russia and Ukraine.

According to industry sources, prices have been hiked in recent days and are likely to rise further in the coming weeks as the crisis between the two countries deepens.

After the price adjustment, a tonne of HRC would cost about ₹66,000, while buyers would get TMT bars for about ₹65,000 per tonne, the sources said on Friday.

“The war is affecting the supply chain at an international level, leading to an increase in input costs. Coking coal is trading at $500 a tonne,” said an industry leader, adding that this was an increase of about 20% from rates a few weeks ago.

India covers 85 percent of its needs for coking coal, an important raw material for steel production, through imports. While Australia remains the main purchasing destination, some of the demand is met from countries such as South Africa, Canada and the USA.

When asked about the conflict’s impact on domestic sectors, including steel, the CEO of Tata Steel and MD TV Narendran said: “Both Russia and Ukraine are producers and exporters of steel, as well as suppliers of raw materials, including coking coal and natural gas Die The unfolding Russia-Ukraine crisis will impact supply-demand dynamics, input costs and the overall global economy.” Narendran, who is also a member of the global industry body World Steel Association, said, “We are continuously monitoring the evolving situation and have contingency plans in place to ensure our customers and stakeholders are not impacted.” Ranjan Dhar, Chief Marketing Officer of AMNS India: “The current Russia-Ukraine issue has thrown the supply chain off balance and all commodity prices are skyrocketing. As a result, the cost structure of steel producers worldwide is going through a big change. We are monitoring the situation and expect clarity to emerge soon.” HRC and TMT bars used in consumer-friendly industries such as automotive, appliance, construction and real estate, among others.

The prices of houses, vehicles and consumer goods will inevitably be affected by the rise in steel prices as steel is a raw material for these sectors, an expert said.

While JSW Steel declined comment, an email inquiry to JSPL, SAIL and RINL went unanswered.

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