The prices of vehicles and consumer goods will inevitably be affected by the rise in steel prices as steel is a raw material for these sectors, an expert said.

Domestic steelmakers have raised the prices of hot-rolled coils (HRC) and cold-rolled coils (CRC) by Rs 4,000 and Rs 4,500 per ton, respectively, industry sources said on Tuesday.

After the price revision, a ton of HRC will cost Rs 67,000 while buyers will get CRC for Rs 80,000 per ton.

The price revisions were made in the past three days, the sources said.

According to the sources, the prices of HRC and CRC could again be increased by 2,000 to 4,000 rupees per tonne. Another hike is likely in mid-May or early June, they added.

HRC and CRC are flat steel used in user-friendly industries such as automotive, home appliances, and construction.

The prices of vehicles and consumer goods will inevitably be affected by the rise in steel prices as steel is a raw material for these sectors, an expert said.

When contacted, a SAIL official said “it depends on the market” and did not comment further.

Although JSW Steel declined to comment, AMNS India and JSPL did not respond to a question about the reason for the price hike.

In response to the rise in prices, CREDAI, the supreme body for real estate agents, has said since January 2020, there has been a sharp rise in the prices of construction raw materials.

Steel prices are at an all time high and have almost doubled since then. Due to the rise in steel prices alone, construction costs have risen 3-5%, while labor shortages and a disrupted supply chain only make the situation more difficult. for the real estate sector, he said.

“Developers will have no other choice but to increase prices to compensate for the rise in commodity prices. This will therefore have a cascading effect on house prices as well. The affordable housing segment will be the most affected because it would be financially unsustainable for the promoters to operate such projects which have very low margins ”, declared the president of CREDAI, Harsh Vardhan Patodia.

The Confederation of Real Estate Developers’ Associations of India (CREDAI) urges the government to take the necessary measures to control the exponential increases in the prices of construction raw materials, he said.