Power cuts lead to hike in steel prices in Punjab

Steel prices have increased marginally in Punjab, ranging between Rs 200 and Rs 300 per metric tonne, due to the three day mandatory power cut per week imposed on induction furnaces by the Punjab State Electricity Board (PSEB).

However, the prices are expected to remain stable in the coming weeks in view of the matching demand and supply, according to traders.

The prices of ingots and saria (finished products of furnaces) rose from Rs 20,200 and Rs 23,800 per Mt to Rs 20,500 and Rs 24,000 per Mt respectively.

The prices of scrap, which is the key input for furnaces, has come down by Rs 500 per Mt due to a three-day closure of furnaces.

However, there was no impact on the prices of other steel products such as HR coils, due to the power cut.

In view of the power shortage in Punjab, PSEB has imposed a three-day compulsory power cut on ARC and induction furnaces.

The reason behind minor hikes in the prices of ingots and saria was the continuous supply of both these products from Orissa and Himachal Pradesh.

"The constant supply of ingot and saria from other states did not allow the prices to go up substantially," said a steel trader in Mandi Gobindgarh.

There are around 150 ARC and induction furnaces operating in Punjab. About 4,000 Mt of ingots per day are produced in the state and an equal quantity of ingots arrives from Orissa and HP, which is meeting the required demand of state rolling mills.