Steel makers to pass on ore, coal volatility

New Delhi : New Delhi: The way steel makers price their output is set to change because they no longer want to absorb increases in the cost of raw materials, and because their customers want to benefit from drops in the prices of raw materials that should result in a lower price of steel as well.

Executives at steel companies and an expert say the move will have an impact on products such as automobiles and consumer durables. Currently, steel producers revise spot prices every month and offer long-term prices on quarterly and biannual contracts. Big buyers—makers of automobiles and consumer durables—prefer the stability of long-term contracts as that helps them manage costs better.