The Hindu : Business : Steel producers hike prices

Online edition of India's National Newspaper
Saturday, Apr 02, 2005

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Business

Steel producers hike prices

By Our Special Correspondent

NEW DELHI, APRIL 1. Primary producers of steel in both the public and private sectors, have effected a fresh round of hike in prices on the first day of the new fiscal, ostensibly on account of the increase in the cost of iron ore and coal in recent months.

The public sector, Steel Authority of India Ltd. (SAIL) has increased the prices of its flat products by about Rs. 1,500-2,000 a tonne, while those of long products have been rendered dearer by about Rs. 800-1,200 a tonne. The private sector Ispat Industries has also raised its hot rolled (flat) steel product prices by Rs. 900 a tonne. According to its Executive Director (Marketing), Vinod Garg, "the price rise is mainly due to a sharp increase in raw material costs."

Defending the price increase, Mr. Garg noted that while even the long-term contract prices for iron ore had gone up by about 71 per cent, coal prices have more than doubled since last year. Uttam Galva Steel, another private sector producer, followed suit by raising its prices by around Rs. 1,500 a tonne for the current quarter.

Those manufacturers who have not raised their product prices today are expected to do so in the next couple of days after assessing the reaction of consumers to the hike effected by SAIL, the benchmark producer.

Since hot rolled steel sheets are used in the manufacture of passenger cars and other consumer goods, automobile prices are also poised to go up.

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