Steel cos to raise prices by 3-4%, 2nd hike in a mth

TOP Indian steelmakers, including SAIL, Essar and Ispat, are likely to increase prices by 3-4% or Rs 1,000-1,500 per tonne in January in line with rising global prices. International steel prices have risen more than 5% over the past month due to growth 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 sectors such as automobiles, consumer durables and construction. While automobile and white goods makers use flat steel, long steel products go into construction. 
    Steel products are currently selling for Rs 32,000-34,000 per tonne in the domestic market, marginally higher than the landed price of imported steel. Anticipating further increase in international prices, steel companies are getting ready for a fresh round of hikes after a few months of slump. 
    "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," said a senior SAIL executive on condition of anonymity. 
    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. 
    Mumbai-based Ispat, which only produces flat steel products, will increase prices by Rs 1,000-1,500 a tonne depending on the grade. "Rise in prices of key raw materials, iron ore and coking coal, is also putting an upward pressure on metal prices," an Ispat Industries spokesman said. 
    An Essar Steel spokesman, too, confirmed the company's plan to increase prices next month.