The volatility in steel prices is expected to continue and the industry must learn to live with the “new normal”, T V Narendran the global CEO and MD of Tata Steel has suggested. In response to a query about the ongoing price changes for steel, he noted that industry participants—both producers and consumers—cannot wish away the volatility in price and should instead consider ways to manage it.
“In my 34 years of connection with the sector, I have never witnessed the level of volatility we have in the last 8 to 9 months. We must learn to adapt to this new normal, Narendran said in a video call with PTI. The industry expert responded that the steel sector has a long supply chain and is a geopolitically vital industry when asked why prices are so volatile. The raw components are extremely flammable.
As long as the coking coal prices keep on going up and down, it will continue to impact steel prices. “I think the volatility is not something which will go away easily,” Narendran said. Coking coal is a key raw material used in manufacturing steel and India remains dependent on imports to meet over 85 per cent of its coking coal requirement.
The price of hot rolled coil (HRC) by steel mills was lowered to Rs 59,800 per tonne on February 8 from Rs 60,900 per tonne on February 1, according to SteelMint. The data from the research agency showed that prices have been ranging between over Rs 55,000/tonne and Rs 60,000/tonne over the last six to eight months.
source from: msn.com
