The steel prices are rising and are expected to go up further this week due to increasing demand and high costs. The steel companies are also renegotiating the contracts with auto companies.
“There has been a price increase. In the last couple of days, we have already increased the prices by about Rs 3,000 per tonne. The demand on the ground is pretty good, which is primarily driving the prices also,” Mayank Agrawal, CEO of Gallantt Ispat told CNBC-TV18.
Speaking on the same lines, Sachit Jain, VC and MD of Vardhman Special Steels said that the steel demand was very strong.
“Demand is very strong, most of us are running our plants at full capacity. So strong demand, as well as cost push, are the two factors which are leading us to ask for the price increase,” he said.
“Going by past trends, normally it takes around a little more than a month for the auto companies to finish the negotiations. We are available for discussions. We have asked for Rs 6,200 per tonne of price increase from April 1,” Jain added.
According to Jain, other steel companies have asked for a higher price increase of upto Rs 8,600-9,000 per tonne.