Steel prices may go up by Rs 1,500 a tonne

Domestic steel manufacturers may increase prices by up to Rs 1,500 a tonne in the next few days to cash in on the pick up in demand in the festive season, the second hike in as many months.

Industry experts said prices may go up by up to Rs 1,500 a tonne across different steel products from October 1. On an average, steel prices are in the range of Rs 30,000-36,000 a tonne now.

Steelmakers said the automobile industry has seen unprecedented sales of vehicles in the past few months and the trend is most likely to continue in the Durga Puja, Dussehra and Diwali season, pushing up the demand for steel.

When contacted, the country’s largest steel maker Steel Authority of India Ltd’s (SAIL’s) chief said the market is bullish. “We have to assess the market conditions (before announcing an increase),” SAIL Chairman C S Verma said.

Tata Steel spokesperson did not respond to phone calls. Essar Steel said domestic prices are still lower when compared to global rates. Margins remain under pressure due to higher input cost, it added.