November 22, 2008

Indian steel makers to hold price for 3 months - Mr Jindal

Mr Sajjan Jindal former vice CMD of JSW Steel, after taking over as president of Assocham, said that Indian steel makers will honor their commitment to Dr Manmohan Singh to hold prices for 3 months, but rates will go up thereafter.

He said that "Prices have to go up. We have to go into the global price regime. What can you do if raw material prices have gone up?"

Mr Jindal said that there is a big gap between global and Indian prices. He added that "Today for hot rolled coils, the international price is close to USD 1,200 per tonne. In India, we are selling it at USD 850 per tonne."

He said that the raw material prices, both of iron ore and scrap, are going up. Scrap is being imported at USD 800 per tonne, while the selling price is fixed at USD 850 per tonne. He added that "Either that part of the steel industry will close, creating shortages or price has to go up."