As India’s real estate sector resumes operations gradually, developers have appealed steel producers to rein in their prices. Confederation of Real Estate Developer Associations of India (Credai) has also appealed central and state governments to solve their grievances. Since late March, activities in the real estate and construction sectors had come to a standstill after the government imposed a lockdown.
Steel prices rose by 1,500-2,000/mt since the beginning of April. Developers blame the price rise on cartelisation by top producers. Steelmakers, however, inform Davis Index that prices increased due to a shortage of inventories after earlier stocks were used to clear backorders. Mills have been unable to ramp-up production as availability of labour remains a problem. Producers of finished steel also cite a rise in input cost pushing their prices higher.