Tata Steel Ltd.

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.