Steel prices to fall by 5% in 3 mnths: CMIE

Economic think-tank Centre for Monitoring Indian Economy (CMIE) expects steel prices to fall by around 5 per cent in the next three months.     

"The expected dip in contract prices of iron ore and coal will put pressure on steel prices. We expect prices to decline by around 5 per cent in the next three months," CMIE said in its monthly review of Indian economy for June.     

Domestic steel makers have urged the Ministry to increase import duty on the alloy to 15-20 per cent from 5 per cent now or impose safeguard duty of about 25 per cent.     

"Any restrictive measures to curb imports, if implemented, will narrow the gap between the domestic and international prices to a maximum of 7-8 per cent. This indicates that prices have not bottomed out yet," CMIE said.     

Meanwhile, Tata Steel today announced that it has raised prices of its products by up to Rs 750 a tonne on improved domestic demand and a firm global trend.     

The company had also hiked the price of long products, used in construction activity, in the range of Rs 300-500 a tonne last month.     

Steel prices remained flat or inched up marginally in May after correcting by 40-45 per cent in the previous six months ended April 2009. Hot Rolled Coil prices in May were at around Rs 26,000 per tonne.