Steel makers may raise prices of more products

Kolkata : After long products, steel majors are contemplating to raise the prices of cold rolled and galvanized steel used by the auto and consumer durable industries by Rs 500-1,000 a tonne.Bhushan Steel and JSW Steel will decide on a price increase over the next week, while Uttam Galva Steels has already increased prices. Neeraj Singal, managing director, Bhushan Steel said, “We are asking for a Rs 500-1,000 a tonne hike in prices this month, but customers are reluctant.”

JSW Steel is contemplating price increases from the middle of the month or next month. Uttam Galva, on the other hand, has increased prices by Rs 1,000-3,000 a tonne over the past one month. The reason for the review of prices is two-fold.

There is a supply constraint in the market as some of the hot-rolled producers were yet to resume 100 per cent normal production.

However, the scenario in the domestic market is better than the international market. According to World Steel Association (WSA), representing about 180 steel producers, including 18 of the world’s 20 largest steel firms, India would be the only major economy whose steel consumption was expected to grow in 2009. The worldwide apparent steel use would drop 14.9 per cent while India would grow 2 per cent.