|
| Tata Steel raises prices by Rs 1,000/tonne |
| Press Trust of India / New Delhi Feb 10, 2012, 17:51 IST |
|
 Tata Steel has hiked prices of the metal alloy in the domestic market by Rs 1,000 per tonne for February, a top company official said today.
"We have increased the prices by about Rs 1,000 per tonne in February," the company's Chief Financial Officer Koushik Chatterjee said in an investor conference call. He added that there is an uptrend in demand in the domestic market, particularly for the long products.
New prices are in the range of Rs 37,000 per tonne, industry sources said, adding that Tata Steel had also increased prices marginally last month for the long products.
Chatterjee, however, did not elaborate about the product categories in which the prices have been raised.
The announcement comes barely a few days after Steel Authority of India (SAIL) increased prices by about 3.9% for the current month for certain long products like TMT Bars and angles, which are used in construction sector, mainly for civil jobs.
During the first nine months of the current fiscal, the demand for steel in the country has risen by just about 5% and now the companies are pinning hope on RBI easing the monetary policy for the revival of demand.
The Tata Steel CFO also said the company has kept a capex of $2.5 billion (about Rs 12,500 crore) for the next fiscal, out of which $ 800 million (about Rs 4,000 crore) will be spent on its upcoming new steel plant of 6 million tonnes capacity at Kalinganagar, Odisha.
Besides, the company will spend $600 million on its European operations and about $400-500 million on its new 2.9 million tonne capacity at Jamshedpur, which is slated to be commissioned in March, he said.
Post commissioning, Tata Steel will have a domestic capacity of about 10 million tonnes. The company is expecting additional sales of one million tonnes in the next fiscal, after the new unit gets operational, Chatterjee said.
In the October-December quarter, the company had posted a consolidated net loss of Rs 602.67 crore, its first quarterly loss in more than two years.
The loss was largely caused by Rs 741.70 crore write down on inventories of raw materials and finished goods, especially in Tata Steel Europe, Chatterjee said, adding that demand in the European market is expected to pick up in the second half of the next fiscal.
The company's shares closed at Rs 475 on the BSE, up 5.3% from the previous close.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
