Agency reports quoted officials from some public sector steel firms as saying that domestic steel prices may recover going forward because of improving demand and rising global prices.
While state-run Rashtriya Ispat Nigam (RINL) is among the few domestic firms that had effected price hikes, Steel Authority of India (SAIL) expects to raise prices in the coming days. It is learnt that the international costs of iron ore have gone up in the recent past to touch $150 a tonne.
CS Verma, Chairman of SAIL is quoted as saying that iron ore prices rose internationally from $90 per tonne to $150 a tonne now. They have to reflect in the pricing of the steel, he said.
The remarkable rise in the demand for iron ore from Chinese steel makers amidst subdued global supply caused international ore prices to rise northward in recent times, reports indicate.
Led by pick-up in construction activity, demand for steel has been rising since October last year after remaining subdued for most part of 2012.
Domestically, National Mineral Development Corporation ( NMDC) may also revise iron ore rates in February because of firming up of iron-ore prices internationally.
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