Auto companies may see sharp increase in prices for steel contracts

Some have temporarily shut down units in the wake of rising Covid cases, but at least three major suppliers to the auto industry said the move was unlikely to impact negotiations

Auto companies may face a sharp increase in prices in the contracts with steel companies that are expected to be concluded early next month.

Companies such as JSW Steel and Tata Steel had increased prices for the January-March period in the wake of runaway steel prices. Now, the contracts under discussions are likely to be for April to September, though for some, it could even be quarterly.

Some automotive manufacturers have announced a temporary shutdown in the wake of rising Covid cases, but at least, three major suppliers to the automotive industry said that it was unlikely to impact negotiations.