Steel stocks were in focus in an otherwise weak market after reports emerged that major steel manufacturers in India had raised prices of rebar and HRC (hot rolled coil) by Rs 1,500 – Rs 2,000 per ton due to the inflated cost of raw materials.
Shares of Steel Authority of India (SAIL) rose 4 per cent to 103.80 rupees, while Jindal Steel and Power (JSPL) hit a 52-week high at 504.95 rupees, up 2 per cent over BSE in Wednesday’s trading. Shares of JSW Steel and Tata Steel rose 1% and 2%, respectively. By comparison, the S&P BSE Sensex was down 0.5 percent at 57,704 points at 1:45 pm.
according to Economic times In the report, JSW Steel decided to increase the prices of rebars by Rs 1,250/ton with effect from 23 March 2022. SAIL also increased the prices of HRC and Cold Rolled Coils (CRC) by Rs 1,500/ton. Meanwhile, other major steel manufacturers are planning to do price hikes in the coming days.
“Steel players have been taking price increases due to rising costs of raw materials, especially coke. Coke prices have risen to $650-700/ton from $300/ton in a month. This is the fourth round of price increase in March,” the report added. .
ICICI Securities believes there is more room for price increases in the future. Actual price of HRC is Rs 72,500-73,500/ton and CRC price is Rs 78,500-Rs 79,000/ton. On the other hand, the price of rebar has been set at Rs 71,000 – Rs 71,500/ton.