Indian steel prices continue to soar in 2010

The increasing costs of coking coal and iron ore are driving the price of steel ever upward. In India, steel prices have increased for the third time this year. The Hindu Business Times reports:

“According to industry observers, mining firms are entering into supply contracts with steel makers for the April-June quarter at about $110-120 a tonne, which is an increase of 80-100 per cent from the levels of 2009-10 annual contracts.”

Apparently, these latest price increases are leading to price hikes in consumer goods and construction that rely on steel-based inputs. However, Steel Minister Virbhadra Singh is not worried about inflationary pressures:

“‘There has been a spurt in steel prices in the domestic market recently but it is a temporary phenomenon and at present there is no inflationary concern.’”

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