The Hindu Business Line : Steel companies hike prices again

Tata Steel increased prices of its hot-rolled coils by Rs 500-1,000 per tonne, a company spokesperson said. However, only a minuscule portion of the steel produced is sold directly to trade.

Prices of steel sold directly to end-users by companies are often revised in their annual contracts.

Essar Steel said it has increased prices of various grades of hot-rolled steel by 3-4 per cent. This works to around Rs 1,000 a tonne.

Spurred by strong demand

Hot-rolled steel prices have been moving up on strong demand. Besides, input costs have also been moving up prompting steel companies worldwide to increase steel prices. Iron ore prices have moved up by 19 per cent, while zinc has risen by 15 per cent in the last one month.

According to industry sources, hot-rolled steel is quoting at $580 FOB internationally (Rs 27,000 a tonne). Landed cost works to around $650 a tonne.

JSW Steel Ltd also announced a hike in the price of hot-rolled coils by Rs 1,000 per tonne "due to the increase in iron ore prices and the weak dollar to rupee conversion".

Zinc's upward movement is likely to impact the price of galvanised steel. "The price rise for galvanised steel will be much higher in thinner gauges than in the others," JSW said in a news release.

"The last few weeks have seen a price rise in the US, Europe and China steel markets," JSW said, quoting its Director - Finance, Mr M.V.S. Sheshagiri Rao.

Ispat said it has increased prices of steel by around Rs 1,000 per tonne.

Some of the steel companies had increased prices of hot-rolled and other steel products early last month.