Steel stocks in focus; SAIL gains 4%, Jindal Steel hits 52-week high

Shares of steel companies were in focus in an otherwise weak market after reports emerged that India's top steelmakers have hiked prices of rebar and HRC (Hot Rolled Coil) by Rs 1,500-Rs 2,000 a tonne due to inflated raw material cost.

Shares of Steel Authority of India (SAIL) gained 4 per cent to Rs 103.80, while Jindal Steel and Power (JSPL) hit a 52-week high of Rs 504.95, up 2 per cent on the BSE in Wednesday’s intra-day trade. JSW Steel and Tata Steel were up 1 per cent and 2 per cent, respectively. In comparison, the S&P BSE Sensex was down 0.5 per cent at 57,704 points at 01:45 PM.

According to a The Economic Times report, JSW Steel has decided to increase rebar prices by Rs 1,250/tonne from March 23, 2022. SAIL has also increased HRC and cold rolled coil (CRC) prices by Rs 1,500/tonne. Meanwhile, other top steelmakers also plan to undertake price hikes in the coming days.

"The steel players have taken price hikes due to rising raw material costs, especially coking coal. Coking coal prices have climbed to $650-700/tonne from $300/tonne in a month. This is the fourth round of price increase seen in March," the report added.

ICICI Securities believes there is more room of price hikes going forward. The effective price for HRC is Rs 72,500-73,500/tonne and CRC price at Rs 78,500-Rs 79,000/tonne. On the other hand, the price of Rebar price is set at Rs 71,000- Rs 71,500/tonne.