Tata Steel, RINL increase prices by up to Rs 1,000 a tonne

Over six months after facing steep fall in prices of their products, steel producers Tata Steel and Rashtriya Ispat Nigam (RINL) have revised the rates of some of their long items, used in the construction sector, by up to Rs 1,000 a tonne.      

While Tata Steel has increased the prices in the range of Rs 300 and Rs 500 for the products to be sold in the spot market, state-run RINL has hiked the rates by up to Rs 1,000 a tonne on rebars, which are mainly used in the housing sector. SAIL and JSW Steel are yet to decide on price revision.      

A Tata Steel spokesperson confirmed the price hike, but said it was more of a "market correction". Of its total produce of over six million tonnes, Tata Steel sells about 20 per cent in the spot market.      

RINL Director Commercial C G Patil said the temporary price revision was in sync with market conditions and would be back to normal once the monsoon sets in.      

"Due to frequent power cuts, the production of ingots by secondary producers has declined. This will get to normal with onset of monsoon," he said while reasoning the price hike.      

Post-price revision the rebars manufactured by RINL are selling in the range of Rs 31,200 and Rs 34,750 a tonne.      

Even as the two major steel producers have increased the rates of specific products, Steel Secretary P K Rastogi said the prices in general have not gone up.      

"There is not a general increase in steel prices, but if it is on specific products we would have to see it," he said.