Steel prices may rise further: Roongta

Steel prices were likely to increase further if raw material costs increased significantly, said Steel Authority of India Ltd (SAIL) Chairman, SK Roongta.

SAIL increased flat product prices in February by Rs 500 a tonne. Roongta said, “Prices came down for three months till mid-December. They should be stable now, but if raw material costs go up significantly, prices will increase,” he said.

Roongta was speaking on the sidelines of the 8th India International Refractories Congress 2010. Raw material prices have been on an uptrend since December. The government recently approved the auction of coal blocks for captive use. The amendment to the Mines and Minerals Development and Regulation Act would be place in the budget session.

Roongta said, there would be special dispensation for the public sector. “Let us see when the policy comes, which route will suit us best,” he said.

However, Roongta welcomed the move to auction coal blocks. “It is part of the reforms in the coal sector. When it comes for free, people are not serious. This will help to get the block developed in time,” he said.

SAIL was scouting for raw material assets, as well. International Coal Ventures Ltd, a company formed by five public sector companies including SAIL had been formed to acquire coal blocks. Roongta said, “Our view is that we should make progress on this front, through ICVL if possible. ICVL does not prohibit companies from pursuing individually,” he pointed out. He clarified that there no decision on pulling out of ICVL and creating SAIL Videsh.

On the issue of SAIL disinvestment, Roongta said, it was uncertain whether it would happen this fiscal.