Rising demand allows steep rise in steel prices

The approaching festive season and restocking are the reasons

Flat steel producers have raised prices (effective August 1) up to Rs 3,000 a tonne, one of the steepest in recent times.

Last month prices were raised by about Rs 1,500 a tonne. With improving demand, these have moved ahead of raw material prices, signalling the industry's stronger grip over the market. In the past 30 days, the latter have increased by about $100 a tonne; China has raised by 4.4 per cent this year, as opposed to 0.1 per cent last year.

A steel producer said there was also a strong demand revival in the domestic market, partly due to the