| Major steel companies Steel Authority of India (SAIL), Tata Steel, Ispat Industries, JSW Steel and Essar Steel have increased hot-rolled coil (HRC) prices by Rs 700-1,500 a tonne. The second price hike this calendar year.
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| Steel prices rose 2 to 3 times in early 2006, but started falling in August with the first cut being initiated in September. In the last quarter, prices were stable and the first increase of Rs 500 a tonne came in February 2007.
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| SAIL has increased prices of all flat products by Rs 700-1,000 a tonne, while Tata Steel has increased only spot prices of HRC by Rs 1,000 a tonne. Ispat Industries has increased HRC prices by Rs 1,000-1,500 a tonne. JSW Steel has increased prices in different HRC grades up to a level of Rs 1,200 a tonne.
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| SAIL has raised prices of semis (long products) by Rs 500 a tonne, largely owing to the construction boom. The ruling price of HRC is now Rs 26,500 ex-factory, an increase of more than 10 per cent since August, when the companies had initiated a price cut. Industry sources said, even after the increase, there was a $50-$60 a tonne difference with prices in the US and Europe.
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| Offer prices from East Asia mills were at $550-570 FOB and indicative offers from China suggest $580 a tonne for HRC. Sources said prices were rising every where. Apart from a strong demand growth around the world, China appears to have influenced the price increase. The steel guzzler shut down some inefficient capacities and also curbed exports to check rising prices.
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| China produced 418 million tonne of steel last year, which is expected to go up to 472 million tonne this year.
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| However, the forecast does not factor in the shut downs. Moreover, Japan is likely to see a rebound with rising forecast from the auto makers, while West Asia is in the midst of a spate of construction activities. Steel makers across the world have forecast that 2007 would be better for the steel industry than 2006. |
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