Industry & Economy
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Steel
Steel firms may hike prices
Our Bureau
Mumbai
,
Feb. 23
Rising zinc prices and logistic costs are prompting steel companies to go in for an upward revision in steel prices.
Galvanised steel manufacturer, Uttam Galva Steels Ltd, on Thursday announced that it has increased the prices of all its galvanised steel products in the domestic market by Rs 2,500 a tonne with immediate effect.
"The increase in prices will compensate for rising logistic and input costs," the company said in a release.
Zinc prices have been on an upward movement on the back of a shortage of the metal and rising demand worldwide.
Zinc prices on the London Metal Exchange have been on a continuous upturn over 6-7 months now. In 2006 alone, prices have risen by 25 per cent to $2,415 a tonne.
Zinc slab prices up
In the local market, prices of zinc slab moved up from Rs 82 a kg in April 2005 to Rs 124 on December 19, 2005.
In 2006, prices have risen from Rs 121 to Rs 129 on February 23.
JSW Ltd, another manufacturer, said that it is yet to take a decision on hiking prices.
Reports of steel companies raising their product prices did help steel shares to move up. Tata Steel gained Rs 8.20 or 1.99 per cent to Rs 419.3 in Thursday's trade on the BSE.
Uttam Galva moved up by 12 per cent to Rs 38.75, while JSW rose by Rs 5.50 to Rs 205.85.
Essar Steel rose by 4.70 per cent to Rs 38.95, while SAIL gained 6.44 per cent to Rs 64.45.
Any hike in steel prices would help companies register an improvement in profit margins.
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