Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Amid rising raw material costs, steelmakers in the country have started to raise their product prices, especially for products used in the auto sector. The increase, mills state, has also been absorbed by the sector.  


R K Goyal, Managing Director of Kalyani Steels states, auto OEMs have accepted a steel price hike of Rs5,950/mt, and auto contracts have been revised upwards for the April-June quarter. Prices could increase further, effective July. 

Since October 2020, raw material, especially iron ore has been on an uptrend. State-owned miner NMDC kept increasing iron ore prices, and the trend could continue if the markets offer support.


The recent tax proposal by the Russian ministry of 15pc on exports of steel may impact global steel prices. Also, a $54/mt is already in place on iron pellets, the basic raw material for steel production.

The price rise could again create a wide gap between HRC and rebar. 

Auto sector to pass on the price hike

Hero MotoCorp has recently announced a raise in its ex-showroom prices for mopeds and motorcycles. The increase could be to the tune of Rs3,000 at the maximum, depending on the model, effective July 1. The decision comes in the wake of a rise in raw material prices. 


Other auto players, including Maruti Suzuki, Renault, Nissan, have also announced a price increase for vehicles. Maruti is set to hike prices for Q2 (July-Sept), while the other two have already increased prices effective April. 


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