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By Malvika Gurung
Investing.com — The escalating Russia-Ukraine crisis is aggravating the supply pressures of commodities and important raw materials like steel, besides surging the oil prices to multi-year highs.
Domestic steel producers have hiked the prices of steel by up to Rs 5,000/tonne, as shipments from the Black Sea region have been hit since Russia started to invade Ukraine, nine days ago, raising concerns of supply challenges and trade disruption.
Industry sources cite that steel prices could further rally in the upcoming days.
Post the price hike, hot-rolled coil now costs Rs 66,000 and TMT bars amount to Rs 65,000/tonne, stated PTI.
Coking coal, a major raw material used in making steel, is trading at almost a 20% high of $500/tonne. India imports almost 85% of it.
Russia and Ukraine together, contribute to nearly 15-16% of global steel exports, which is why the crisis is pegged to impact supply-demand dynamics, input costs and the overall global economy, states Narendran, Tata Steel (NS:) CEO and MD.
Steel products like HRC and TMT bars are used as key raw materials in other industries, including auto, real estate, appliances and construction.
Rising steel prices are going to impact these industries too unless the Russia-Ukraine crisis ceases.
Steel stocks including Tata Steel, SAIL (NS:), JSW Steel (NS:) and Jindal Steel & Power (NS:) declined from 2-3.6% on Friday.
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