Indian steel companies have raised prices in October after three months, but there could be more hikes in the next few months on the back of cost inflation, Indian rating and research firm Crisil said in a report on Thursday, October 21.
Industry circles said that prices of thermal coal ex-Australia FOB were up by more than 150 percent since April this year and prices of other key inputs like graphite, ferroalloys, natural gas and zinc have also surged.
Elevated global steel prices will provide enough headroom for domestic steel producers to cover cost inflation, considering that local steel prices are still at a 13-15 percent discount to the landed price of imports, the Crisil report said.
EBIDTA margins of large domestic steel companies in the fiscal year 2021-22 are expected to be at least 400-500 basis points higher, the report said.