Steel companies negotiate 10-16% price increase for auto manufacturers

While some mills have finalised contracts, others hope to close by month-end. Deals are for April-June quarter

Leading steelmakers have finally struck a deal with automobile manufacturers for a price increase of 10-16 per cent after protracted negotiations.

For flat steel, which is used in the car body, non-exposed car chassis and safety components, the increase is Rs 7,500-9,800 a tonne; the increase in longs, used in engine, transmission and the steering, and seating wire applications, is about Rs 6,000 a tonne.

While some mills have already finalised contracts, others are hoping to close by month-end. The contract is for the April to June quarter.

Ranjan Dhar, chief marketing officer, ArcelorMittal Nippon Steel India (AM/NS India), said,