Steel to be dearer by up to Rs 1,000 a tonne
The recent 6.5% hike in railway freight rate has led to an increase of Rs 300 a tonne in the prices of steel products across the country. Traders are considering a further increase of Rs 700-1,000 a tone in coming days.
Ingot rates at the standard Mandi Gobindgarh market in Punjab, India’s largest spot steel market, increased by Rs 300 a tonne to Rs 39,750 a tonne.
The cost of steel production will certainly surge on the freight rate hike, with a rise in iron ore transportation costs. With the increase in freight cost, all raw materials, including coal and iron ore, will become dearer. Consequently, coal, iron ore and steel prices will increase.