Driven by market dynamics, steel prices in the country have risen but are still competitive compared to prices of the metal in the international markets, an official said on Friday.

Steel makers in the country have reportedly raised prices of benchmark hot rolled coil by up to Rs 3,500 a tonne on the back of rising input costs due to soaring coal prices.

“Steel prices follow global trends and are now at a higher level. If compared to international markets, our prices are still low. It is a deregulated sector and market dynamics have an influence on it,” said steel ministry additional secretary Rasika Chaube while addressing a programme organised by the CII.

Tata Steel in its guidance indicated that prices of the metal in India will be higher by about Rs 2,500 per tonne in the current quarter compared with last year and in Europe, it will be higher by about £25 to £30 per tonne.

With increasing coal prices and high cost of raw materials, it is difficult to sell steel at current prices, a company official said. However, some analysts said steel prices may see corrections in the near term with iron-ore prices easing.

Mission Purvoday

Chaube said the Centre envisioned the transformation of eastern India as a potential integrated steel hub through Mission Purvoday.

“The eastern region is

foreseen to contribute 80-90 million tonnes in the estimated 250-million-tonne production by 2030,” Chaube said.

The government intends to create land banks, ensure availability of iron ores at competitive prices and provide statutory clearances on time, the official said.