Steel prices in India are registering an upward trend due to "rapidly" increasing rates of key input material coking coal, industry executive Bimlendra Jha said.
Coking coal and iron ore are the two main raw materials used to manufacture steel.
While iron ore is available in substantial quantity in India, steel players are bound to meet 90 per cent of their coking coal requirement through imports from countries like Australia and South Africa.
"Coking coal prices have increased rapidly (which are) currently trading at USD 341 per tonne CFR (cost and freight) India, from USD 230 a tonne in June-July 2023," Jha, Managing Director of Jindal Steel and Power (JSP), told PTI.
The steel industry is facing an upward movement in prices because there has been a dramatic shift in coking coal prices, so the industry has no option but to pass on the cost to consumers, he said in reply to a question on increasing rates of steel in India.
As per markets research firm SteelMint India, the cost of per tonne hot rolled coil (HRC) in June was Rs 55,200, which has risen to Rs 58,800 on Thursday after price correction.
Speaking further, Jha said the market is also witnessing an uptick in steel demand, which is 7-8 per cent.
After witnessing a downward trend, particularly in monsoon, there is an uptick in demand, he added.
Steel is among the top three most widely used metals and any movement in its prices impacts the entire value chain.