Steel prices likely to go up again from July 1 on high input cost: JSPL MD

"The prices have already bottomed out. There is no chance of reducing them further. There will be an upward price correction from Friday, July 1 mainly on account of higher input cost," he said

After back-to-back downward corrections, steel prices are expected to rise from July due to high input costs, an industry executive said on Wednesday.

"While coal price is at Rs 17,000 a tonne, iron ore prices by Odisha Mineral Corporation are still high. It is the main supplier of iron ore in Odisha," JSPL Managing Director V R Sharma told PTI on the sidelines of an event organised by the Indian Chamber of Commerce here.

"The prices have already bottomed out. There is no chance of reducing them further. There will be an upward price correction from Friday, July 1 by (primary players) mainly on account of higher input costs," he said.

Secondary steel makers have already increased the price of rebars by Rs 2,000 to Rs 55,000 per tonne in the last four days, Sharma said.

There are various other factors building pressure on steel makers, Sharma said, adding there are issues with the availability of coal. Rakes are also not available for the supply of coal as most of them have been diverted for power sector.

Steel players use iron ore as raw material to make steel and coal to feed their captive power plants.

According to SteelMint, prices of hot rolled coil (HRC) are ruling in the range of Rs 59,000-60,000 a tonne from its peak in May at Rs 76,000/tonne.