The steel prices are likely to go up drastically after December this year. The advent of the New Year will see major steel companies raising the prices of steel.

The price hike is majorly being caused by iron and coal prices. The hike in these commodities will mean pressure on the steel prices which will eventually be hiked. The quantum of the hike is not yet decided but it most probably will be a decent hike as the hike in coal and iron or prices is substantial as well.

India's one major steel makers Steel authority of India Ltd. raised its prices in the range of Rs. 300-350 per tonne.

Coking coal and iron ore prices have gone up from $220 to $230 per tonne and $130 to $150 per tonne, respectively, due to which the likely rise will range roughly from Rs. 1000-1200 per tonne in the next year.

The price hike will also be affecting the company's performance on the Bombay Stock Exchange. Analysts have warned investors and asked them to be a bit cautious before investing in these stocks.