Industry sources say steel prices at home only mirrored the $30 a tonne increase in steel prices in the international market in the last six months. Since February this year prices of hot rolled (HR) coils, billets, slabs and galvanised plates and coils (GP/GC) sheets have risen steadily in the world market, after touching rock bottom in December and January.

The trend caught up with Indian producers around April and already flat steel prices have been marked up by almost 10 per cent and stainless has turned almost five per cent dearer. Industry sources attribute the price increase to the anti-dumping measures against cheap steel in the US and Europe.

The global price trend has had an immediate impact on exports. The Steel Authority of India Limited's (SAIL) exports jumped by 48 per cent inthe first quarter of this year, compared to the first three months of 1998-99.

The $30 a tonne increase in HR coils prices overseas to $288 a tonne, found the export prices of Ispat Industries, Essar Steel and Tata Steel move up to $260 a tonne to $265 a tonne, market sources said.

Hot rolled coils are still available in the country for roughly Rs 14500 a tonne, or close to $250 a tonne, but that is because the steel majors have not yet reacted to the upward trend in prices.

The 30 per cent over-capacity in flat steels at home implies that import prices dictate domestic price trends to a great extent. Even so, steel majors, SAIL and Tata Steel have not yet marked up their prices, even though the more optimistic among steel-makers like Essar, Jindals, Ispat and Lloyds have, to an extent.

The steel majors have a grip over almost 60 per cent of the market, which means that the bulk of the market has not quite felt the impact of the price increase. Both SAIL and Tisco continue to offer the rebates thathave been available since the beginning of the year.

Market sources say though, that the marketing divisions of both the companies were already in the midst of revising the customer price of steel. In a limited way, the margins for hot rolled (HR) coils have improved from Rs 1500 a tonne to Rs 3500 a tonne.

Stainless steel prices, which have been pushed up by the worldwide hike in nickel prices, are definitely climbing uphill, said sources in Jindal Strips. Jindal Strips is the single largest producer of stainless steel, with a grip over 35 per cent of the market.

At the steel marts around the country, prices of steel used for construction is also firming up. On Thursday prices of girders and joists went up by Rs 100 a quintal in the capital, when manufacturing units went on a buying spree, according to market reports.

Incidentally, prices of long products tend to be low during the Monsoons because of the slackness in construction activity. The buying spree suggests a pick up in industrial activity,which should be responsible for the definite upward movement in steel prices at home.