Workers moving steel coils in a factory amidst supply concerns.
Steel prices are projected to reach ₹64,500 per tonne by the end of April, according to Enlight Metals. The forecast is based on ongoing supply constraints exacerbated by geopolitical tensions and disruptions in energy supply, critical for energy-intensive steel manufacturing.
Enlight Metals cites the Russia-Ukraine conflict and its impact on global energy markets as a key factor. Disruptions in energy supply are particularly affecting production capabilities, leading to tighter steel supplies and upward pressure on prices.
The projected price increase could affect various sectors, including construction, automotive, and manufacturing, which rely heavily on steel. Companies may face increased input costs, potentially impacting profit margins and consumer prices.
Market analysts are closely monitoring the situation, as further escalation of geopolitical tensions or additional disruptions in energy supply could lead to even higher steel prices. The situation highlights the vulnerability of energy-intensive industries to global events and supply chain disruptions.
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