Business Daily from THE HINDU group of publications
Tuesday, Mar 27, 2007
ePaper
Business Daily from THE HINDU group of publications Tuesday, Mar 27, 2007 ePaper |
|
|
|
|
|
|
|
Industry & Economy
-
Steel Steel makers lock horns over pricing system Our Bureau
New Delhi March 26 The cold rolled steel manufacturers and primary steel manufacturers are at loggerheads on the pricing issue and have been unable to forge a mutually agreeable pricing system. Consequently, last week's meeting of the Steel Price Monitoring Committee under the Ministry of Steel remained inconclusive. The cold rolled steel makers buy hot rolled steel from the primary manufacturers and cold roll them into thinner sheets. The differences are about the price of domestically produced hot rolled steel in the local market.
Import parity price
The cold rollers demand that they should be given at the same price at which the producers are exporting. But the primary producers are maintaining a price differential and selling at import parity price. This is possible because irrespective of the international price, imports cost additional in terms of ocean freight, customs duty and insurance charges. Domestic hot rolled producers link their prices to the landed price of imported steel, which is opposed by the cold rollers. According to Mr S.C. Mathur, general secretary of the Cold Rolled Steel Manufacturers' Association (Corsma), the Indian companies are exporting at $560-570 per tonne whereas in the domestic market, the present price is Rs 28,000-28,500, equivalent to around $630-635 a tonne.
No signs of reduction
At the last week's meeting, there were no indication of a price reduction, he said. "Our demand is that steel companies should sell us at the same price they are selling to buyers abroad and the Government agrees with us," he said.
More Stories on : Steel
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2007, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|