In a weak market, homecoming costs Lakshmi Mittal Rs 49,670 crore

High value of stressed steel assets reflect the uncertainty of putting up a greenfield projects in India apart from the cost which is $1 billion for a million tonne capacity

When ArcelorMittal in October last year revised its bid for debt-laden Essar Steel to Rs 42,000 crore, steel prices in the domestic market were peaking with the benchmark hot-rolled coil price hovering close to Rs 46,000 a tonne. 

Thirteen months later as the cloud over the deal is clearing, prices have tumbled by close to 25 per cent.  

In February last year, when the world’s largest steel maker threw its hat in the ring for Essar, steel prices were at Rs 43,000 a tonne, much higher than its current level of Rs 34,000-35,000 a tonne, and the bid amount lower