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Steel prices to go up by 7-8 pc from tomorrow

Ambarish Mukherjee

New Delhi , March 30

PRIMARY steel manufacturers are all set to increase prices of all grades of steel products from April 1.

Though the exact quantum of increase would be finalised by some of them only on Thursday, indications are that it would be in the range of Rs 1,500 to Rs 2,000 per tonne for hot rolled steel in the case of most manufacturers except Tata Steel, which is increasing its prices by around Rs 5,000 per tonne.

The price hike on Friday will come three days after Steel Minister, Mr Ram Vilas Paswan, had said that raw material prices of two major inputs for making steel had gone up. "Iron ore prices have increased by 70 per cent and coking coal prices by 125 per cent," Mr Paswan had told reporters earlier this week.

The average price of hot rolled steel is in the range of Rs 28,000-29,000. While for Ispat Industries, Essar Steel and Jindal Vijaynagar, it is around Rs 29,000, for SAIL it is Rs 28,000 and for Tata Steel it is Rs 26,000.

Sources in SAIL told Business Line that the company would meet internally on Thursday to take a final decision on the price hike that is likely to take effect from Thursday midnight. "One may look at an increase in the range of 7-8 per cent for flat products and around 2-3 per cent for long items," company sources said.

A Tata Steel spokesperson said that the company has increased the prices for long-term contracts for six months to one year and this would come into effect from Friday. "Over all, the increase would be in the range of Rs 5,000 per tonne," he said. According to sources in Ispat Industries, the company had a meeting on Wednesday to decide on the price issue and a final decision will be taken on Thursday. "An announcement may be expected on Thursday," sources said and indicated that it could be in the range of Rs 2,000.

A spokesperson for Essar Steel said, "The company is yet to take a call on the price rise issue formally. But one may say that something in the range of Rs 1,500 to Rs 2,000 may be feasible."

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