SAIL, Tata Steel hike prices; others likely to follow

Last Updated: Wednesday, September 2, 2009 - 23:37

New Delhi: Leading steel makers SAIL and Tata
Steel on Wednesday hiked prices of some of their products by up to Rs
1,500 a tonne on improvement in demand, while their peers are
considering similar options.

"We have raised prices of our flat products (used for car
manufacturing) by Rs 1,500 a tonne in line with the rising
international prices," a SAIL spokesperson said.

SAIL and Tata Steel have raised prices of their flat
steel products primarily consumed by automobile and the white
goods industry. Prices of long steel products used in
construction and infrastructure sector, however, remain
unchanged.

"Tata Steel has increased prices of its flat steel
products by 3-4 per cent in the spot market in line with the
firming of demand," a company spokesperson said. The increase
in rupee terms hovers in the range of Rs 1,250-1,500 per tonne
depending on the grade and type of the product.

Prices of flat steel products vary in the range of about
Rs 29,000-40,000 per tonne in the domestic market.

Steel makers like JSW Steel, Essar Steel, Ispat
Industries are mulling similar options to cash in on the
rising demand.

"We will take a call on prices this week. We are
analysing the international market which has moved up, barring
a bit of softening in China. Moreover, Zinc prices have also
increased," JSW Steel Director (Sales and Marketing) Jayant
Acharya said.

However, he maintained that prices of the long steel
products will remain `stable`. Zinc is used in manufacturing
certain flat steel products. Its prices have shot up
significantly in the past few months.

Essar Steel spokesperson said the company is "reviewing
the market."

The steel makers had increased the prices of flat steel
products by up to Rs 1,000 per tonne last month.

Bureau Report



First Published: Wednesday, September 2, 2009 - 23:37

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