July 25, 2008

Secondary steel makers cut prices by INR 4,000 per tonne

BL reported that secondary steel producers have reduced prices by INR 4,000 a tonne, following a INR 4,000 a tonne price cut effected by hot rolled steel producers earlier this month. The move is expected to contain spiraling prices of downstream steel products such as cold rolled coils, galvanized steel, tubes and pipes.

The decision emerged out of a meeting convened by union ministry of steel with the secondary steel manufacturers. In the meeting it was also decided that the secondary producers will hold prices for three months, similar to the announcement made by the primary producers after their meeting with the Prime Minister earlier this month.

Mr RS Pandey union steel secretary said that "The secondary steel producers have assured that they will reduce prices of their flat products by INR 4,000 a tonne and maintain the new price line for the next 3 months."

Mr Pandey said that in order to increase availability of steel in the domestic market, the producers have also pledged to import raw material, process it and export it under the Advance Licensing Scheme to improve the domestic supply side situation. He added that the fiscal measures taken by the government have already brought down prices of long steel products by around 20%.

Mr SC Mathur secretary general of Cold Rolled Steel Manufacturers Association said that the government had assured the producers that it would consider their request to remove export duty on steel products. He added that "The ministry said that it will consider our request to keep the implementation of the notification on steel export duty in abeyance."