The Hindu Business Line : Steel cos gearing up to hike long products price

According to an official in one of the companies, there has been a freeze on prices till June. "It was mainly because the user industry was complaining about rising hot rolled steel prices and the Government intervened. Then it was agreed that prices would be frozen till June. But though then the problem was for hot rolled products, prices of all steel items were frozen. But now the market situation has changed and there is serious shortage in long products," the official said.

Since the beginning of this month, long products like reinforced bars, wire rods, rounds, joists, angle, channels & beams, rails, billets, slabs etc have been enjoying an average premium of Rs 4,500 to Rs 5,000.

Till the middle of April, the average premium was around Rs 3,000.

"So it is the manufacturers who are losing out while the middlemen are making the gains. So it is natural that prices have to be increased," officials said.

According to industry sources, the manufacturers may increase prices to the extent that halves the premium.

Officials, however, maintain that there would not be any across-the-board price increase. "The decision on the quantum of increase will be taken only around the end of May. We will see how the premiums for various products move till the month end. Based on the existing premium at the end of May the amount of price increase will be decided," officials said.

According to available information, market premium for long steel products have been steadily increasing during the past few weeks. Most of the long products are currently enjoying 20 to 30 per cent premium in the mandis and is increasing each day, officials said.