Steel prices to fall by up to Rs 600 a tonne

Steel prices are set to come down by up to Rs 600 a tonne following the government cutting excise duty from 10 per cent to 8 per cent with effect from midnight today.

"The duty cut will result in reduction of prices in the range of Rs 500 to Rs 600 per tonne and help in creation of demand for the commodity," SAIL Chairman S K Roongta told PTI.

Most of the steel items, including hot-and cold-rolled coils, and TMT bars, used by sectors like automobile and construction attract 10 per cent excise. With two per cent reduction in the tax structure, the duty applicable on the commodity would now be eight per cent.

"We will pass on the benefit of the duty cut to user industries," Essar Steel Holding CEO J Mehra said.

JSW Steel and Ispat Industries also said rates would come down.

"Prices of our products would come down in the range of Rs 400-600 a tonne," said JSW Group CFO Seshagiri Rao.

Steel products are priced in the range of Rs 30,000 to Rs 40,000 per tonne, depending upon their quality and value addition.