According to a new CII-Accenture report, the “[m]ajority of iron and steel units in northern India are running at below 50 per cent of their capacities primarily because of power shortage and spiralling input cost,” reports The Economic Times.
“Most steel mills are running at less than 50 per cent of their respective rated capacities because of poor supply and rising input cost,” noted the report.
“‘The power outages in northern states are resulting in production losses and forcing many mills to work only single shifts,’ it further said.”
“The report on ‘Indian Steel Industry-An overview and growth prospects of steel industry in north India’ further pointed out that rupee depreciation against the US dollar has not only raised industry’s input cost but also dealt a severe blow to industry as it faced cancellation of export orders.”
On Tuesday, November 26, the steel billet 3-month price experienced the biggest change, rising 2.1 percent on the LME to $240.00 per metric ton. Also on the LME, the steel billet cash price rose 2.1 percent to $240.00 per metric ton.
Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India were range bound. The price of Chinese HRC remained steady. For the fifth day in a row, the price of Chinese coking coal remained essentially flat.
The US HRC futures contract 3-month price saw little movement on Tuesday, closing out around $650.00 per short ton. The US HRC futures contract spot price held steady at $668.00 per short ton.