Steel makers mulling price hike
New Delhi: Leading steel makers are mulling hike in prices with at least one of them confirming raising the rate by Rs 1,400 per tonne to offset the cost push and to minimise gap with landed cost of the imported metal.
"We have hiked the price by 3-4 percent with immediate effect," said an official at a leading flat steel maker, requesting anonymity.
A couple of other firms, which produce both flat and long products, said they would deliberate on prices in a day or two and admitted that there is a case for revising the rates as firmed up coking coal prices are pushing up the cost of producing steel.
The hike in Rail freight from this month has also increased the transportation cost for the steel makers by Rs 60 per tonne.
"These apart, there is a gap of USD 50-70 dollar gap in the landed costs of steel compared to the domestic price. This needs to be plugged a little," one steel maker said.
Steel is generally consumed the most during this time of the year when demand reaches its peak because of buoyancy in construction work and in the consumer durables sectors.
Steel Authority of India (SAIL) is among the leading producers which had jacked up the prices last month.