Bhushan Steel down on high raw material prices, low demand

Shares of Bhushan steel were trading lower on Wednesday as the company said that demand was not as good as it should have been and there was increasing pressure from high raw material prices. At 12:16 pm, shares were lower by 2.40% at Rs 446.40.

"Prices are going up because of the pressures of increase in raw material prices. Coking coal prices have gone up by 8% to 10% in the last quarter and even the iron ore prices are going up. There is no way that the steel company can absorb these kind of a price increases, so we definitely have to increase the prices of steel. Most of the companies have increased the prices this month and we have to see how this behaves in terms of the demand. Demand is picking up but not as good as it should have been and it may take another one or two months to see whether the prices will continue in this fashion or stabilize," said Nitin Johri, CFO, Bhushan Steel to ET Now.