Central India: Steel producers convene meeting to mull ways of raising margins

Raipur, Chhattisgarh-based steel re-rollers, sponge iron and mini steel plant associations have scheduled a meeting on 21 Jun’21 to discuss the issue of recurring losses resulting from a significant fall in steel prices and constant surge in raw material prices.

• SteelMint learnt that sponge iron kilns and furnaces in Raipur are witnessing a price gap of INR 2,000-3,000 t compared to the selling price of materials, while rebar producers have reported a fall in conversion spreads by upto by INR 1,000/t.
• Margins for ingot/billet producers have shrunk to more then INR 3,000/t. As per association sources, despite high steel prices producers are facing a tough time running mills at prevailing margins. To continue operations, it is essential to improve margins.