National Mineral Index a likely solution to keep steel prices reasonable

Diversity in grade quality could make index formation difficult, say industry officials

Introduction of a National Mineral Index for iron ore, the key raw material used in the making of steel, is a plausible solution to keep domestic steel prices reasonable amid rise in demand as consumption is seen growing given the thrust on government infrastructure projects.

Domestic steel prices have been rising relentlessly since Apr-June quarter of 2020.

As per Crisil Research’s quarterly domestic hot-rolled coil prices indexed, the index has jumped to 186 levels in Jul-Sep CY21 from 106 level in Apr-Jun quarter CY20. The index is based at 100 with timeline starting Q4 CY19. (see chart)

While the iron