SAIL cuts prices by up to Rs 2,000 a tonne
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B. Karthick
Jul 9, 2009, 1:01:23 AM7/9/09
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SAIL cuts prices by up to Rs 2,000 a tonne
The country's largest steel maker, Steel Authority of India (SAIL),
today said it has cut prices of its long products — used primarily in
construction — by Rs 1,500-2,000 per tonne and may further lower the
rates if the situation so warrants.
"We have brought down prices by Rs 1,500-2,000 a tonne on July 1 on
our long products. Monsoon is setting in, so construction activities
will come down. If the market situation demands, we will bring the
rates down further," SAIL Chairman S K Roongta said on the sidelines
of the Assocham steel summit.
However, the steel maker said it will continue with the withdrawal of
the Rs 500-750 per tonne rebate announced on the flat steel products —
mainly used by the automobile and the consumer durable sectors — last
month.
Steel giant Tata Steel, which raised prices of some of its products
last month by Rs 500-750, said there is no scope for increasing prices
of the commodity in the near term and the domestic prices will
continue to move in tandem with the global trend.
"Indian steel prices will be in tune with the global trend. If the
global trend goes down, it will go down and if the global trend is up,
the prices will go up. In the short term, there is no scope for us
(Tata Steel) to increase prices," Tata Steel Managing Director B
Muthuraman said.
State-run RINL may also consider reducing prices "in a day or two".
However, it sees stability in domestic steel prices at the moment.
"I see stability in prices at the moment. We deal in long products
only. There can be 2-3 per cent revision in our prices, maybe upwards
or downwards, in day or two," Rashtriya Ispat Nigam Chairman and
Managing Director P K Bishnoi said.
The country's largest private steel maker by capacity, JSW Steel, had
yesterday ruled out increase in prices of its products mainly on
account of lower input cost pressure.
Steel companies have negotiated coking coal contracts at lower rates
and expect to sign iron ore deals at a huge discount in the current
fiscal over the last one.
Lower steel prices have hit hard the margins of domestic companies.
Steel prices plummeted from the peak of $1,150-1,200 a tonne to
$500-550 a tonne in the past three quarters due to the slump in demand
in the wake of the global economic slowdown.
B.Karthick
Research Analyst
The country's largest steel maker, Steel Authority of India (SAIL),
today said it has cut prices of its long products — used primarily in
construction — by Rs 1,500-2,000 per tonne and may further lower the
rates if the situation so warrants.
"We have brought down prices by Rs 1,500-2,000 a tonne on July 1 on
our long products. Monsoon is setting in, so construction activities
will come down. If the market situation demands, we will bring the
rates down further," SAIL Chairman S K Roongta said on the sidelines
of the Assocham steel summit.
However, the steel maker said it will continue with the withdrawal of
the Rs 500-750 per tonne rebate announced on the flat steel products —
mainly used by the automobile and the consumer durable sectors — last
month.
Steel giant Tata Steel, which raised prices of some of its products
last month by Rs 500-750, said there is no scope for increasing prices
of the commodity in the near term and the domestic prices will
continue to move in tandem with the global trend.
"Indian steel prices will be in tune with the global trend. If the
global trend goes down, it will go down and if the global trend is up,
the prices will go up. In the short term, there is no scope for us
(Tata Steel) to increase prices," Tata Steel Managing Director B
Muthuraman said.
State-run RINL may also consider reducing prices "in a day or two".
However, it sees stability in domestic steel prices at the moment.
"I see stability in prices at the moment. We deal in long products
only. There can be 2-3 per cent revision in our prices, maybe upwards
or downwards, in day or two," Rashtriya Ispat Nigam Chairman and
Managing Director P K Bishnoi said.
The country's largest private steel maker by capacity, JSW Steel, had
yesterday ruled out increase in prices of its products mainly on
account of lower input cost pressure.
Steel companies have negotiated coking coal contracts at lower rates
and expect to sign iron ore deals at a huge discount in the current
fiscal over the last one.
Lower steel prices have hit hard the margins of domestic companies.
Steel prices plummeted from the peak of $1,150-1,200 a tonne to
$500-550 a tonne in the past three quarters due to the slump in demand
in the wake of the global economic slowdown.
B.Karthick
Research Analyst
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