Indian steel firms to hike prices in new year
Friday, 1 January 2010
NEW DELHI, Dec 31 (Commodity Online): India's SAIL, Essar and Ispat, all steel majors, are all set to hike prices by 3-4 per cent or Rs 1,000-1,500 per tonne in January in line with rising global prices.
In November, international steel prices had gone up over 5 per cent following a rise in demand. The price hike, which will be for steel products (both long and flat) sold in the spot market, will increase the cost of production for steel-consuming sectors such as automobiles, consumer durables and construction.
Steel products are currently at Rs 32,000-34,000 per tonne in the domestic market, marginally higher than the landed price of imported steel.
Steel prices have risen $30-40 per tonne to $580 a tonne internationally in the past month, which is a clear indication of steel uptake. Also, demand for long steel products, which was subdued during the monsoon, is on the rise and leading to price increase.
India's largest steel producer SAIL plans to hike long product prices by Rs 1,000-1,200 per tonne and flat steel products by Rs 700-1,000 a tonne. This would be the second round of hike by SAIL in as many months. SAIL and Tata Steel hiked prices of long and flat steel products by up to Rs 2,000 per tonne a few days ago on the back of rising demand.
In November, international steel prices had gone up over 5 per cent following a rise in demand. The price hike, which will be for steel products (both long and flat) sold in the spot market, will increase the cost of production for steel-consuming sectors such as automobiles, consumer durables and construction.
Steel products are currently at Rs 32,000-34,000 per tonne in the domestic market, marginally higher than the landed price of imported steel.
Steel prices have risen $30-40 per tonne to $580 a tonne internationally in the past month, which is a clear indication of steel uptake. Also, demand for long steel products, which was subdued during the monsoon, is on the rise and leading to price increase.
India's largest steel producer SAIL plans to hike long product prices by Rs 1,000-1,200 per tonne and flat steel products by Rs 700-1,000 a tonne. This would be the second round of hike by SAIL in as many months. SAIL and Tata Steel hiked prices of long and flat steel products by up to Rs 2,000 per tonne a few days ago on the back of rising demand.