“MS Ingot prices have been volatile in the last few days. Higher coal cost which has resulted in high power cost along with recent hike by NMDC in iron ore prices will support steel prices at current levels,” feel industry experts.
“It is reported that power prices in UP and Chhattisgarh are likely to go up by 20-25% in the coming days on expensive coal where as power prices in Andhra Pradesh, Tamil Nadu, Bihar, Punjab and MP has already been hiked or indicated to be raised,” said industry sources.
“We do not see prices correcting to a large extent as higher input costs will support them. If power prices go up, it will add further pressure on margins,” said a steel manufacturer based in Raipur, Chhattisgarh.
Ghaziabad is facing power issues with regular power cut of 2-4 hours currently. This has kept prices afloat. Labor problems also seem to be cropping up slowly with labor now going to farms for harvesting duties.
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