New Delhi, June 29: Buoyed by recovery in demand from China after it was declared SARS free, the leading steel manufacturers are all set to increase prices in the range of Rs 400-700 per tonne from Monday. Steel demand from China, which had slowed down due to SARS has started picking up again and its impact can be felt on global prices and thus a price rise on the domestic front is natural, industry sources said.
All the leading manufacturers sail, Tata, Essar, Ispat and Jindal Vijaynagar are expected to undertake an upward price revision from Monday. China had also been a bit restrained in buying as it was facing the problem of stock piling, they said and added that now with the construction activity going full swing after it recovered from SARS, the demand is expected to go up further.
Steel prices, after witnessing a continuous northward movement in the first quarter of the calendar year, had stabilised considerably on the global as well as domestic front. The price rise is expected to be in all product segments including hr coils and flat products.
Hr coil prices are currently ruling around Rs 18,900-20,500 per tonne while cr sheet is at Rs 23,000 -25,350 per tonne
Sources said demand of flat products from China will be consistent at least for three years as China did not have capacities in flat products and fresh capacity addition will take at least two-three years. Bureau Report