Srinagar: Jammu and Kashmir’s real estate sector has taken a big hit after domestic steel prices rose sharply due to the ongoing Ukraine-Russia war.
Domestic steelmakers have increased the price of hot-rolled coil (HRC) and TMT bars by Rs 5,000 per tonne as the supply chain has been impacted because of the Russia-Ukraine war. In Kashmir, the price of HRC has increased by Rs 12000
“The hike is more than 25 percent. The suppliers have increased the price by Rs 12000 per tonne,” said Shahid Kamili president of Federation Chamber of Industries (FCIK) and owner of the Himalayan Rolling Steel Industry.
He said the steel demand has fallen due to the price escalation. “It has been more than two weeks that demand has dropped. The steel industries have recorded a 50 percent drop in demand,” Kamili said.
Both Russia and Ukraine are the biggest manufacturers of steel. In addition, they are one of the biggest suppliers of raw materials including coking coal and natural gas. India meets 85% of its requirements of coking coal, a key steel-making raw material, from imports.
Kamili said the hike in the steel price will hit infrastructural development projects. “We fear that the projects won’t get completed this year if the steel price goes up further in the coming days,” he said.
The prices of houses, vehicles, and consumer goods are bound to be impacted by the rise in steel prices.
“We don’t get customers right now. All the dealers are sitting idle. People are adopting a wait and watch policy,” said Ghulam Nabi Wani, a TMT bar dealer from Baramulla.