Mining ban in Karnataka may push up steel prices

Steelmakers and minegold gemstones diamond and silver mobil recovery equipments manufacturers owners, reeling under a ban on mining in Karnataka, are keeping their fingers crossed about the Supreme Court hearing scheduled on Friday.

The uncertainty in iron ore and the resultant rise in ore prices have led the steel industry to actively consider an upward revision in prices, just days after most companies mentioned of keeping product price levels unchanged. "Iron ore spot prices have been rising by $1-2 daily since the ban came into effect last week. Prices have already crossed $150 per tonne," H Noor Ahmed, vicepresident, Federation of Indian Mineral Industries and partner of Bellary-based Trident Minerals said. "Most plants have been hit by the ban and mining activity has come to a grinding halt. Karnataka accounts for some 25% of the steel produced in India. If this situation continues, it may have an impact on...