Team News Riveting
Sensing the swing in the auto sector with growth projection post COVID-19 pandemic, the steel manufacturers had planned to hike the price of vehicle manufacturing raw material.
In fact, the steel companies had to wait a long time to finalise the price for the automobile sector. The delay however proved beneficial for the steel makers as it looked forward to hike in price even as it had been upswing since the country started unlocking.
Experts in the industry said that the steel companies could increase the price upto 20 per cent even as the parleys for inking annual contracts with the auto manufacturers was on the final stage.
JSW Steel had finalised many contracts and some were in the pipeline. Tata Steel had however finalised contracts with most of the auto companies purchasing steel from them.
Major auto-grade domestic steel producers include Tata Steel, JSW Steel and Essar Steel. India’s automotive industry contributes about 10-12 per cent of overall steel demand in the country. The rising automobile demand augurs well for demand of hot-rolled coil, galvanised sheet, cold-rolled coil, high-strength steel products, body sheet and panels.
Experts said that the steel manufacturers had taken the average of the last six months to fix the price for the coming months for auto manufacturers in the country. Going by the calculations, the steel price for the vehicle manufacturers would go up in the range of 10 to 20 per cent.
