Steel prices up Rs 2000 over supply fears

Fear of supply shortage due to black out in 100 induction furnaces has pushed up steel prices by Rs 1,500-2,000 per metric tonne across all sections.The prices have especially gone up in north India.

"These furnaces have been facing power cut from last five days.It was disrupted by the government for unspecified reasons,said,Anil Suraj, managing editor,Steel Town Weekly. He also runs rolling mill and induction furnaces.

As per government orders the power supply will resume after September 15. Low power generation due to less rainfall was cited as a reason for the disruption.

The affected areas include Delhi, Himachal Pradesh, Jammu & Kashmir and Punjab.The area with approximately 100 induction furnaces has an average production capacity of 40 metric tonne per unit per day.

"The price rise is not permanent and it will be back to normal once the power supply restores," adds Anil.

"We are expecting good supply this year, therefore, overall price of steel is expected to remain depressed this year", he added.

India produced 36 million tonne steel last year and it is expected to be 100 million tonne by the end of 2020.