Steel cos consider price increase in Jan

Leading steel companies like SAIL JSW, Essar and Bhushan Steel may hike prices next month to cash in on the demand surge in domestic markets.

The country's second largest steel producer JSW Steel today joined others in the industry gunning for a price hike in January.

"Internationally, steel prices have improved by about $30 a tonne (to $450 a tonne) in the past one month. There is a possibility of JSW increasing its prices," JSW Steel Director (Sales and Marketing) Jayant Acharya told reporters here.

Steel producers have cut prices by about Rs 2,000 a tonne in the past two months following a fall in global prices and threat from cheaper imports. "There is no threat of cheaper imports now. Globally, prices have bottomed out," he added.

Bhushan Steel yesterday said the price increase could be in the range of Rs 500-1,500 a tonne. Though none of the steel makers confirmed the quantum of the hike.

An Essar Steel official said the prices could be revised upwards next month but refused to give a figure to the possible hike. SAIL Chairman S K Roongta said prices are likely to be increased in January.

Asked if the government would intervene to check the price increase by steel makers in a cartel, Steel Secretary Atul Chaturvedi said, "If prices can go down, they can go up. We have no plans of intervening at the moment. We will see when the situation warrants."