SAIL, Tata Steel hike prices; others likely to follow

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Leading steel makers Steel Authority of India (SAIL) and Tata Steel today hiked prices of some of their products by up to Rs 1,500 a tonne on improvement in demand, while their peers are considering similar options.

"We have raised prices of our flat products (used for car manufacturing) by Rs 1,500 a tonne in line with the rising international prices," a SAIL spokesperson said.

SAIL and Tata Steel have raised prices of their flat steel products primarily consumed by automobile and the white goods industry. Prices of long steel products used in construction and infrastructure sector, however, remain unchanged.

"Tata Steel has increased prices of its flat steel products by 3-4 per cent in the spot market in line with the firming of demand," a company spokesperson said. The increase in rupee terms hovers in the range of Rs 1,250-1,500 per tonne depending on the grade and type of the product.

Prices of flat steel products vary in the range of about Rs 29,000-40,000 per tonne in the domestic market.

Steel makers like JSW Steel, Essar Steel, Ispat Industries are mulling similar options to cash in on the rising demand.

"We will take a call on prices this week. We are analysing the international market which has moved up, barring a bit of softening in China. Moreover, Zinc prices have also increased," JSW Steel Director (Sales and Marketing) Jayant Acharya said.

However, he maintained that prices of the long steel products will remain 'stable'. Zinc is used in manufacturing certain flat steel products. Its prices have shot up significantly in the past few months.

Essar Steel spokesperson said the company is "reviewing the market".

The steel makers had increased the prices of flat steel products by up to Rs 1,000 per tonne last month.