MoneyWorks4Me

Tata Steel's raw material costs may go up by $1 bn

11 Mar 2011 Evaluate
Tata Steel’s expenses on key raw materials are likely to go up by $1 billion in the current financial year to $7 billion due to a rise in input costs. The costs on inputs would further escalate by around 15 per cent next financial year over 2010-11 levels attributing the rise to higher iron ore and coking coal prices, which went past $300 a tonne as a result of a global scarcity in the wake of floods in Australia’s Queensland. Steel prices, as a result, will go up next financial year as the manufacturers of the alloy are unlikely to absorb the escalated input costs on the back of increased demand for the alloy.
Peers
Company Name CMP
JSW Steel 1233.50
Tata Steel 178.10
Steel Authority 175.20
Jindal Stainless 741.50
APL Apollo Tubes 2100.50
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