Indian steel prices are likely to face a rare three-way increase this month

Indian steel prices are likely to face a rare third increase this month, which steelmakers attribute to price rising of iron ore .

The third price increase may occur on March 1. The increase will be 1,000 rupees/ton, and if it is achieved, India's steel price will rise by 2750 rupees/ton in the last 30 days. After the latest round of price adjustment, the price of hot rolled steel has risen to 44200 rupees/ton.

Hot rolled steel is the standard variety of steel products.
Such price increases are rare and have barely occurred in the past eight years, an industry official said.

In the first week of February, prices rose 750 rupees/ton for the first time, and in the third week of this month, they rose 1000 rupees/ton for the second time.

After three consecutive months of weakening steel prices in India and the world, steel prices have recently ushered in a new round of rising. One industry executive said steel prices had fallen sharply since November last year because of the weak Chinese market.

Since November last year, although China's production has declined, it has not been able to fully offset the negative impact of its weakening steel demand.

Global ore prices have risen following the collapse of a tailings dam in Vale, Brazil, the world's largest iron ore producer. It is reported that the output of ore affected by the accident is about 70 million tons.

This has also led to a rise in steel prices in the global market.
The rise in steel prices in India's domestic market, if it does occur, may also be related to the recent strength of iron ore prices. NMDC, India's largest iron ore producer, announced on February 22 that it would raise the price of iron ore by 400 rupees/ton. A spokesman for the company confirmed the price increase.

But industry executives say the rise in steel prices may not be sustainable because steel demand remains weak.