Steel companies hike prices of steel products

To begin with, Tata Steel and the state run Steel Authority of India (SAIL) raised spot prices of hot-rolled (HR) products by Rs 500 to Rs 1000 per tonne, at the same time they pointed out that they have reduced prices of long steel, used largely in the construction sector, by Rs 500 to Rs 2,000 a tonne.

At the same time, a SAIL spokesperson here made it clear that it has not increased prices of items such as GP sheets, used by the common man.

Also, JSW Steel hiked the prices of flat steel by 2-3 per cent, while  Uttam Galva Steels has enhanced the prices of cold-rolled and galvanized steel items by Rs 2,000 a tonne. Essar Steels too have hiked the price already in July owing to incremental rise in the input cost, said its CEO J Mehra to a DH poser. What is significant to note is that while flat steel prices are being increased, long products are showing a reverse trend.  Mr Jayant Acharya, director (sales & marketing), JSW Steel, said long product prices had been reduced by 3-4 per cent owing to seasonality factors and less project demand. SAIL too has reduced long product prices by Rs 500-2,000 a tonne.

Also with the focus on infrastructure in the Budget, project demand is set to pick up from October,” said he.

Industry observers maintain that the increase in flat steel was on the back of the increase in global prices – with HR coil prices in the last couple of months having moved up in the range of $200-$600 per tonne.  In Europe and the US, demand was gradually picking up.

ArcelorMittal and Corus were also ramping up production quarter-on-quarter.