SAIL asks MoU partners to limit retail margin

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Endorsing government's concern over rising prices of steel in the retail market, Steel Authority of India on Friday asked the companies with whom it has long-term contracts for supply of HR coils to limit their retail margins within Rs 1,200 per tonne.

The state-run PSU also warned the companies of punitive action if they resold the HR coils procured from it.

"SAIL has informed its MoU HR Coil customers in writing that their purchases from the company are only meant for actual consumption and that any resale of the product will attract punitive action," a statement from SAIL said.

The company added it has issued advisory to its MoU customers to limit retail margins within Rs 1,200 per tonne over the price at which they have procured it from SAIL.

"Any departure from this limit will invite stern action," country's largest steel producer said, adding that the MoU customers have also been advised to inform it about their stock position on a regular basis.

Steel major SAIL said it has alerted its branch sales offices to keep a strict vigil on dealers selling the products above Maximum Recommended Retail Price (MRRP) limits and has instructed them to stop supplies to those who do not adhere to the company's direction.