Steel makers up flat product rates

Steel producers — Tata Steel, Steel Authority of India Ltd (SAIL) and Ispat Industries — have increased flat product prices. While SAIL and Ispat Industries have increased prices by Rs 1,500 a tonne, Tata Steel said it had hiked spot prices by 3-4 per cent. Flat steel is primarily used by the automobile and consumer durable sectors.

Jayant Acharya, director (sales & marketing), JSW Steel, said the company was reviewing prices and would take a call by the end of the week. An Essar Steel spokesperson also said the company was reviewing the market. Acharya explained that while international prices had increased in some countries, prices in China had softened.

However, Anil Sureka, director (finance), Ispat Industries, said prices could not be decided on a day-to-day basis. Spot prices in China had softened over the last fortnight, though in other parts of the world the increase was to the tune of $50 a tonne. Moreover, there was some cost push.

Sureka added that royalty on coal had pushed up steel costs by Rs 400-500 per tonne. Also, zinc prices were now hovering at around $1,900 a tonne.

Cold rollers and galvanised steel producers said there were waiting for the hot rolled manufacturers to increase prices. Ankit Miglani, director (commercial), Uttam Galva Steels said: “We are waiting for a confirmation from the HR producers.”

Last month, some of the steel companies had increased prices by Rs 500-1,000 a tonne. Even though flat steel prices were on the rise, long steel prices used in the construction sector were being kept at the same level.

Acharya said there was no chance of an increase in long steel prices. SAIL and Tata Steel have also kept long product prices unchanged. Last month, long product prices were reduced by Rs 500-2,000 a tonne.