Stainless steel prices have shot up sharply over the last few weeks owing to surging input prices coupled with strong demand, especially in China.
For instance, prices of stainless steel grade 304 which were hovering at $2,100 per tonne in January 2006 have currently reached $3,000 levels per tonne in global markets. Domestic prices, closely linked to international prices, are expected to be revised shortly, say analysts.
Arvind Parakh, director, finance, Jindal Stainless, said the quantum of hike is being currently worked out and price hikes are expected shortly.
The stainless steel industry has been grappling with nickel prices on the LME surging from $13, 500 per tonne levels at the beginning of this year to the current high of $18, 545 per tonne.
Nickel and scrap are the major raw materials used to manufacture stainless steel. Different grades of stainless steel contain varying quantities of nickel content.
Steel scrap prices have currently reached $300 per tonne, a gain of 10-15 per cent since the beginning of 2006, say analysts.
A recent Steel Business Briefing report highlighted that stainless steel demand is growing at a faster rate than any of the other main industrial metals, even outstripping aluminum.
Meanwhile, strong demand from the construction sector has helped Chinese stainless output rise 31 per cent in the second half of 2005 to 3.16 million tonne, according to China Stainless Steel Council.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
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