Steel majors increase prices

“We have increased steel prices in the range of Rs 2,000-2,500 a tonne mainly due to rise in raw material prices,” Steel Authority of India Chairman S K Roongta told reporters on the sidelines of the SAIL Open Golf Tournament here.

Private Steel makers JSW Steel and Essar Steel too confirmed hiking their prices. However, Tata Steel, said it has not yet taken a decision on raising prices.

JSW Steel Director Sales and Marketing Jayant Acharya said the company has increased the prices of its products by 5-7 per cent and will review the rates again in mid-April to fix the prices for the next month. “It is a preliminary review. We are partly offsetting the rise in raw material cost pressure,” he said.

An Essar Steel spokesperson said, “The price increase is in the same range as of other steel producers. It is mainly due to steep rise in raw material prices.” The increase in prices by the companies is effective from April 1. On the rising steel prices in the domestic market, SAIL Chairman said India will follow the rising global trend where the rates have gone up due to increase in prices of iron ore and coking coal—two key raw materials for steel.

Asked about the government’s view on rising steel prices, Steel Minister Virbhadra Singh said, “There has been a spurt in steel prices recently but it is a temporary phenomenon and at present there is no inflationary concern due to that.”