Steel firms hike prices

Steel companies have increased hot-rolled product prices by Rs 600-900 per tonne on the back of increased input costs and strong demand. JSW Steel has hiked prices by Rs 800 a tonne and Ispat Industries by Rs 600-800 a tonne. Tata

Steel has increased spot hot-rolled prices by Rs 800-900 a tonne. Essar Steel has increased prices by 3-4 per cent (Rs 700-900 a tonne), a spokesperson said. The ruling price of hot-rolled coils in the domestic market is Rs 28,000-29,000 a tonne.

Steel Authority of India (SAIL) officials were not available for comments. However, trade sources said the public sector steel major has increased long product prices by around Rs 1,000 a tonne and cut rebates of the same amount in flat products without shifting the base price.

The price hike is the fourth this financial year and comes after a rollover of prices in the last two months. The hike is largely led by an increase in iron ore and coking coal prices.

"NMDC upped prices by Rs 574 a tonne effective October, which translates into an impact of around Rs 900 per tonne of steel," industry representatives said.

Seshagiri Rao, director (finance), JSW Steel said, "The demand is strong. The market will be able to absorb the hike." JSW sources 30 per cent of its iron ore requirements from NMDC and 40 per cent from the spot market. More hikes are likely during 2008.

"The growth in global production is likely to be less than the demand growth and hence slowdown in the US will not have any impact on steel prices," Rao said.