State-controlled Sail has increased its list prices by Rs 750-1000 ($ 11-15) this month. According to market participants, similar price increases were also made by Tata Steel and JSW Steel.
Mills offer hot coils at around Rs 41500-42500 /t, while rebar is offered at Rs 40,500 /t - Rs 41,500 /t.
Experts cite the higher cost of iron ore as the reason for the increase in steel prices.
Indian state-owned mining company NMDC has raised its June selling prices for iron ore by Rs 250 /t. Prices for 65.5% iron pieces were raised to Rs 3,100 /t, excluding royalties, environmental tax and other local taxes and fees.
Steel demand has been sluggish this month due to the economic crisis.
Domestic steel consumption growth slowed to 7.5% between March 2018 and March 2019, down from 7.9% in 2017-18 due to increased liquidity and higher fuel prices affecting on consumption in the automotive sector, according to the Indian rating agency Icra. Demand growth slowed to 6.4% in April this year and is likely to remain below the 2018-19 level. in April-June due to the continuing recession in the automotive sector and the contraction of construction activity.
