'Steel makers to hold prices for 3 months'

"Prices have to go up. We have to go into the global price regime...What can you do if raw material prices have gone up," Jindal said.     

Jindal today took over as Assocham President replacing Venugopal Dhoot, head of the Videocon Group.     

Large steel producers had reduced prices up to Rs 4,000 per tonne on request of Prime Minister Manmohan Singh on May 7. They had also agreed to hold the price line for the next three months. The three-month price moratorium expires in August.     

Jindal said there is a big gap between global and Indian prices. "Today for hot-rolled coils, the international price is close to $1,200 per tonne. In India, we are selling it at 850 dollars per tonne," he said.     

The new Assocham President said the raw material prices, both of iron ore and scrap, are going up. Scrap is being imported at $800 per tonne, while the selling price is fixed at $850 per tonne. "Either that part of the steel industry will close --creating shortages-- or price have to go up," Jindal said.     

Asked whether over 100 billion dollars of investment announced by global majors like ArcelorMittal and Posco could face a risk if the government continues to restrict steel exports, Jindal said, "I guess so.

One has to talk to Posco and ArcelorMittal and (ask) if there is an export duty and restrictions, whether they will invest."