Indian steelmakers negotiate price hike amid rising raw material costs

In a significant development in the Indian steel industry, steel mills are currently engaged in negotiations for a potential price hike ranging from Rs 2,000 to Rs 6,000 per ton ($25-70) for coal. Industry insiders reveal that there is a possibility of a Rs 2,000 per ton ($25) increase for hot rolled coils, while cold rolled coils may see a more substantial hike of Rs 5,000 per ton ($60). The primary factor driving these negotiations is the surge in raw material costs, particularly for coal.

Stakeholders anticipate that finalized contracts will be reached within the next 10-15 days, with potential implications for the October supplies in the steel market. As the industry grapples with rising production costs, these negotiations underscore the challenges faced by steel manufacturers in maintaining profitability amidst volatile market conditions.