The Hindu Business Line : Steel producers mull hiking prices

New Delhi May 1 After holding prices during April following intervention by the Government, major steel producers are now contemplating a price increase over the next few days. This could impact all categories of steel such as hot-rolled, cold-rolled, long products and structurals, industry sources said.

The increase could be in the range of Rs 800-1,000 per tonne across the board, sources in Steel Authority of India Ltd (SAIL) said.

"Market prices of products similar to SAIL products but manufactured by small producers have gone up by around Rs 1,500-1,600 between March and April," sources pointed out.

Private players, however, did not comment on the issue.

Talks on

Industry sources also pointed out that talks between the producers and consumers are not yet over and the range of hike may be different for different manufacturers.

Currently, the average price of hot-rolled steel made by SAIL is approximately Rs 26,800 per tonne without excise. This would go up to around Rs 27,600-27,800. The average price of long products, which currently stand at around Rs 25,000 per tonne, would reach close to Rs 26,000, sources said.

Global prices of steel sheet used to make cars and appliances rose by around five per cent during last month, industry sources said.

They, however, pointed out that the tendency to go in for price hikes may be tempered in the near future because steel scrap costs have started to slide.