ET reported that steel prices could go up by 2% to 5% in July, with large steel producers such as SAIL, Ispat and Jindal Steel contemplating price hikes. Prices are likely to go up in the range of INR 500 per tonne to INR 1,000 per tonne for various products. Some steelmakers had raised prices by INR 500 tonne to INR 1,000 tonne in May and June.
The country’s largest steelmaker SAIL is likely to increase prices of certain grades by INR 500 per tonne to INR 750 per tonne. Ispat Industries is also looking at increasing the price of hot rolled coil by INR 700 per tonne to INR 1,000 per tonne, while JSW, Essar and TATA Steel are reviewing the situation and would take a call in the first week of July.
Mr SK Roongta chairman of SAIL said “I don’t think there is any possibility of a substantial increase in prices, but small adjustments can always be made. For spot customers, we will look at prices afresh in the first week of July.”
Mr Roongta said “It is an ongoing process. Some small adjustments to the tune of INR 500 per tonne to INR 750 per tonne, that’s about 1% to 2%, keep on happening.” SAIL had made minor changes in prices and withdrew discounts in May and June. We take a call in the beginning of month on price rise.
TATA Steel spokesman said that in any case, prices variations is only for spot customers, who constitute 20% to 25% of our customer base. An executive with Ispat Industries said the company may raise prices by INR 700 per tonne to INR 800 per tonne or more in July as the company had not increased prices either in May or June. We are reviewing the situation and nothing has been finalized as of now.
An executive with a private sector steel company said “While the domestic demand has maintained its pace, increasing steel price may be difficult as prices have fallen by USD 50 tonne in China.”
According to the latest forecast of World Steel Association (worldsteel), India is the only major economy expected to show a growth in steel consumption (2%) in 2009.
