Hot-rolled coil rates hiked by Rs 1,000

Fuelled by the upward trend in international markets, Indian steel players on Thursday announced a hike in hot rolled (HR) coil prices by an average Rs 1,000 per tonne.

JSW Steel, Essar Steel and Ispat Industries each indicated that they would be increasing prices. JSW Steel, one of the largest steel producers in India, reasoned the Rs 1,000 per tonne hike on the increase in iron ore prices and the weak dollar to rupee conversion.

"The price hike in the HR segment is influenced by the trend in the international market. The last few weeks have seen a price rise in the US, Europe and China steel markets," said MVS Seshagiri Rao, director, finance, JSW Steel.

Sources close to Essar Steel and Ispat added that higher gas and iron ore costs have also pushed the HR coil prices.

Last week, Chinese steel producers had increased domestic prices by about six per cent. Japan's Nippon Steel has also announced a hike, even though domestic consumption has been down this year.

Iron ore majors such as Rio Tinto and BHP Billiton have been pushing for a rise in iron ore prices, which was agreed by steel players ThyssenKrupp and Arcelor.

With the increase in zinc price, market sources add that there will be a possible increase in galvanised steel prices too.

A JSW Steel release said, "Since the price of zinc has gone up by nearly 15 per cent in May, it is likely to impact the price of galvanised steel. Though, the price rise for galvanised steel will be much higher in thinner gauges than in the others. Also, since the zinc price on the London Metal Exchange has shown a definite upward trend it is likely that it will have an impact on the galvanised steel price."

Though the country's largest private steel manufacturer Tata Steel is yet to indicate a price increase, market sources say that the company might soon follow suit.