Steel prices jump up to ₹5,000 per tonne amid Russia-Ukraine conflict: Report
- After Russia invaded Ukraine, supply disruptions have hit global prices of wheat, soybean, fertiliser and metals like copper, steel and aluminium - raising worries about prices and economic recovery.
Domestic steel makers have hiked the prices of hot-rolled coil (HRC) and TMT bars by up to ₹5,000 per tonne as supply chain is being impacted amid ongoing Russia-Ukraine conflict, news agency PTI reported.
After Russia invaded Ukraine, supply disruptions have hit global prices of wheat, soybean, fertiliser and metals like copper, steel and aluminium - raising worries about prices and economic recovery.
According to the PTI report, the prices have been increased in the past few days and are expected to go up further in the coming weeks with the crisis deepening between the two countries.
After the price revision, a tonne of HRC will cost around ₹66,000, while the buyers will get TMT bars for about ₹65,000 per tonne, the report noted.
Meanwhile, Nifty Metal index has surged about 12% in the last five trading sessions as compared to a 2% fall in Nifty 50. Domestic brokerage house Motilal Oswal believes that sanctions on Russia will impact the prices of aluminum, nickel, steel, thermal coal, and PCI coal positively.
India is a net exporter of aluminum and therefore, the brokerage believes that companies such as Hindalco, National Aluminium Company (Nalco) and Vedanta will benefit from the elevated aluminum prices. Whereas, Coal India will be the biggest beneficiary of resurgence in coal demand, and Tata is likely to be the biggest beneficiary of any steel price hike in the EU.
Motilal Oswal believes the sanctions on Russia will lead to a disruption in supply chain for several commodities and it may take up to several months to reinstate the entire supply chain. Prices are likely to remain elevated until this is achieved.
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