The Major steel manufacturing company in India has revised their price with a stiff rise.
Also the Global steel price witnessed the same. The global steel price will have clear impact on the domestic price. Experts see a rise of 15% is possible for steel price.
Even the last available Indian Government data shows a rise of Pig Iron indices from 110.8 to 136.6 during Sep_20 to May_21. The hike is of 23.29% within 9 months. The pig iron is basic constituent for any downstream steel manufacturer. The end product cost will go up accordingly. Hot rolled coil and cold rolled coil will witness spur in price. It is used in metal sheet manufacturing etc.
This shoot up of price is going to affect various future project with overshooting of budget of project.
Owner must plan their construction project accordingly . They should watch carefully before they kick off a new construction project involving huge quantity of steel.
Following sector may affect significantly:-
Oil & Gas Construction Project:-
The oil & Gas construction project basically involve lots of pipe and structure steel. The sudden hike may impact their procurement. The hike will impact cost of storage vessel, pipes, Civil Structural activity etc.
Car Manufacturing company:-
Post Covid era has seen a significant rise in car buyer because of social distancing norms. But the hike of steel will impact the cost of car the buyer willingness.
Consumer goods cost from home utensil to others will be affected significantly.