Steel counters sprint up in a falling market

DALAL STREET SPIKES

Steel stocks gained in a rather subdued market on strong buying support. Essar Steel stock was up 7.95 per cent to Rs 55, Bhushan Steel was up 9.26 per cent to Rs 191.70, Ispat Industries was up 4.85 per cent to Rs 28.10, Tata Steel was up 2.24 per cent to Rs 440.80 and Steel Authority of India was up 2.09 per cent to Rs 65.85. Uttam Galva Steel was frozen at 20 per cent upper circuit at Rs 63.15.

Analysts tracking the sector said, buoyed by a firm demand and rising input costs, domestic steel makers are expected to hike steel prices for their annual contracts beginning April.

Domestic steel prices are expected to jump up around Rs 4,000 per tonne in the next year, analysts added. "Prices could go up by Rs 4,000 per tonne in 2005-06. However, the rise will be spread over the entire year," said an analyst.

Tata Steel has already announced that it would be raising prices for all its long-term contracts from April 1.