Indian steel companies upset over hike in iron ore prices Steel...

Indian steel companies upset over hike in iron ore prices

Steel News - Published on Thu, 04 Jan 2018

Image Source: ET
Economic Times reported that the hike in iron ore prices has upset domestic steel companies which are now bracing for a spike in production costs. It is slated to affect both large steel majors who do not own captive iron ore mines as well as smaller and medium steel firms that rely on merchant ore supplies to feed their units. Companies fear, along with price increase in coal, refractory and other raw material, it will force them to raise steel prices.

JSW Group CMD Mr Sajjan Jindal tweeted "Recent increase in iron-ore price by state owned #NMDC & Orissa pvt miners is forcing steel companies to pass on increased cost of production. Increased cost of other raw materials like coal, refractory, electrodes is further fueling this & leaving no other option@SteelMinlndia."

A top official in a leading steel company told ET "The price increase of INR 500per tonne by NMDC is exorbitant resulting in supernormal profiteering in a basic raw material. It will spiral inflationary trend as steel prices will go up to absorb the increased prices of fines. It will also severely impact steel production by smaller producers as cost increase and additional cash flow will restrict production. There is a need for a regulator to address such irrational price increases.”
Source : ECONOMIC TIMES