The Hindu Business Line : Another steel price hike in the offing

ANOTHER round of hike in steel prices is round the corner. According to industry sources, primary steel producers are planning to increase the prices of hot-rolled steel from around the middle of next week. This time, the increase is expected to be around eight per cent.

According to market sources, this will be the fourth time since December 2003 that the producers will be increasing the prices of hot-rolled steel, which is leading to increases in all other types of steel down the line.

The reason for this round of price increase is being attributed to the raw materials, according to sources in the producing companies. The cost of coking coal has increased abruptly during the month with China cutting down its exports and problems in some of the Australian mines. This has led to scarcity in the market and has forced some Indian producers to cut down on production.

Industry sources revealed that Ispat Industries and Jindal Vijaynagar have already been forced to cut production marginally on account of scarcity of coking coal in the international market. However, Tata Steel's production has not been affected as it does not import any coking coal. Essar Steel has also remained largely unaffected since the company has a gas-based plant. SAIL too, has been affected badly but is pulling through while scouting for alternative sources of coking coal.