Input crunch causes steel prices to rise in Punjab

Low supply of raw materials has resulted in an escalation of steel prices in Punjab by Rs 500 per metric tonne in the last one week.

The price of steel ingot has zoomed to Rs 25,000 per MT from Rs 24,500 per MT. Similarly, price of saria has gone up from Rs 28,500 per MT to Rs 29,000 MT, traders said. Steel furnace manufacturers in the state have been facing acute shortage of inputs like sponge iron and scarp, for the last 15-20 days.

"Because of incessant rain in Bihar, Orissa and surrounding areas, the availability of sponge iron for steel producers in Punjab has come down by 20-30 per cent," said a Mandi Gobindharh based furnace mill owner. The shortage of raw material has also been aggravated because of the prevailing high prices of scrap.