Steel makers feel the heat of input cost rise

Manufacturing gets costlier by at least Rs 8,000 a tonne for producers without captive mine

The recent increase in prices of iron ore and coking coal has made steel manufacturing costlier by at least Rs 8,000 a tonne for producers without captive mines.
 
This is likely to put pressure on their margins, being unable to pass on the extra cost to consumers in a market situation where domestic demand is subdued.
 
Of the 122 million tonnes installed capacity of steel in the country, about 70 per cent come from industries without captive mines, dependent on iron ore bought from merchant miners.
 
The price of iron ore lumps (62.5 per cent iron) has