The sharp rise in railway freight could hit the steel industry, which is already reeling under high raw material cost and weak demand. In the last six months, the logistics charges for the steel industry have gone up by 20 per cent to about Rs 2,400 a tonne, and companies are not able to pass on the incremental cost to the end user due to weak demand.
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We hope to see a revival soon
Vinita Singhania, Managing Director, JK Lakshmi Cement, believes that the cement demand will dramatically increase from Tier II and II cities and even rural markets.