'Steel prices will continue to rise as Ukraine crisis hits supply'

New Delhi: The price of steel will continue to move upwards on "good demand" and as the supply chain remains affected amid the Ukraine-Russia conflict, according to industry consultancy SteelMint.

The prices in the international market have moved up by around $135 a tonne and are moving up since the conflict started in the last week of February, SteelMint founder and CEO Dhruv Goel said on Tuesday.'

In the domestic market, prices of hot-rolled coil (HRC) in the first week of March were in the range of Rs 68,000-69,000 a tonne against Rs 65,500-66,500 tonne in the previous week; while for cold-rolled coil (CRC), at Rs 73,000-74,0000 a tonne as compared with Rs 71,000-72,000 tonne in the preceding week, he said.

"The conflict has impacted the movement of raw materials as well as goods. There is a good demand for steel. We anticipate these two factors will further improve the prices," he said.

According to industry figures, before the conflict between Russia and Ukraine began, the oil prices stood at $90 a barrel. The rates are now trading near 120 $a barrel and there is a projection that it would reach $180 a barrel in a few days.

As oil prices have gone up, freight rates of cargo ships, which currently stand at $20,000 a day, are likely to reach $30,000 per day. Similarly, coal prices are also rising. Coking coal has breached the $550-a-tonne mark, from $250 a tonne before the crisis began.