SAIL raises steel prices

Steel Authority of India has increased prices of steel products, both flat and long, by Rs 800-1,500 a tonne, dealers said.

While prices of hot-rolled coils have gone up by Rs 1,000 a tonne, plates rates have been increased by Rs 1,500. Prices of galvanised products have also been hiked by Rs 800 a tonne, they added.

Other leading steel makers in the country, including Tata Steel, Ispat Industries and JSW Steel, have kept marked prices unchanged for May.

Steel makers have been under pressure to keep prices stable in view of the high inflation rate. The headline inflation rate, as measured by the wholesale price index, continues to hover around the 6 per cent mark despite government measures to curb it. Meanwhile, the Steel Chamber of India slammed SAIL for the price hike. Steel Chamber of India Joint Secretary Pradeep Shah said the hike is a severe blow to traders as well as consumers.

"The actual burden on traders will be up to Rs 2,500 a tonne, considering the bank interest burden. The interest burden is double-edged as we have to buy steel from plants against cash payment and sell it to users on credit. We fear that prices of Tata, Ispat and Jindal steel products too will go up anytime now," Shah said.

At 2:10pm, shares of SAIL traded at Rs 134, up almost 3 per cent from the previous close.