The Hindu Business Line : Steel regulator on the anvil: Paswan

THE Government is ready with a regulatory authority to monitor and control steel prices and could set it up whenever the need arises, the Union Minister of Steel, Chemicals and Fertilisers, Mr Ram Vilas Paswan, said here today.

The regulatory authority, National Steel Regulatory Commission, would facilitate the Government to keep a check on steel prices and control speculative tendencies, Mr Paswan said. However, he urged the industry to be prudent on price increases.

(Mr Paswan had earlier said that the Ministry was proposing to set up the National Steel Regulatory Commission to look at pricing and other issues for the steel industry.)

The regulatory authority would function independently on the lines of the Telecom Regulatory Authority of India, the Minister said.

He also said today that the Steel Ministry has suggested to the Government to do away with incentives for steel exports to ensure that domestic requirement of steel is met. Some of the steel manufacturers have reduced exports in order to cater to domestic demand.

He also indicated that state-owned steel companies would not raise prices. His statement puts to rest speculation that Steel Authority of India was planning to raise steel prices.

On Wednesday, Tata Steel had announced an increase in steel prices to the extent of Rs 500 a tonne. This hike was on its spot sales of steel, which is to the extent of 20 per cent. A company official said the main reason for hiking prices was the recent increase in freight costs to the extent of 10 per cent.

When contacted both Jindal Vijaynagar Steel Ltd and Ispat Industries Ltd said they were not considering a price increase on HR products at this juncture.

Jindal Iron and Steel Company Ltd has increased prices of galvanised steel by about Rs 500-750 per tonne. "Zinc prices have gone up by $120-150 a tonne over the last one and a half months. We are passing on zinc, freight and other raw material cost increases," Mr Raman Madhok, Joint Managing Director and CEO, Jisco, said when contacted.

Internationally steel prices have also been on an upward move primarily because of sustained Chinese demand. Besides, raw material and fuel price increases have forced steel manufacturers worldwide to hike steel prices.