The price of ingot — one of the key raw materials — has increased from Rs 31, 000 per tonne on June 15 to Rs 33,800 today. Amid the lockdown, the steel prices nosedived against the pre-Covid level mainly because of fall in demand. However, once the industrial activity resumed, the prices started increasing on the back of hike in domestic demand.

According to experts, prices in the domestic market are increasing because there is a demand pull and internationally also prices have gone up. The industries which have bore the brunt include hand tools, auto parts, castings and bicycle and bicycle parts.

Exporters who have committed orders in hand are the worst hit as they are unable to execute these orders due to the high input cost, feel industrialists.

“We were already facing labour issues. Now, the increase in prices has come as a shocker. The export orders are already down by 20% as compared to last year and the constant increase in prices would lead us nowhere as we are not in a position to negotiate with our clients,” said Amit Goswami, director, Euro Forge (Punjab).