When contacted steel secretary AK Basu, however, said revised floor prices for various steel items announced by the commerce ministry were more or less in line with steel ministry's recommendations. "We accept the prices set by the commerce ministry," Basu said. Expressing concern, Sail sources said the basis for imposition of floor price on the prime grade of HR coils to restrict the cheap flow of imports was very much alive as indicated by the increasing volume of imports of HR coils. Meanwhile, Cold Rolled Steel Manufacturers Association (Corsma) welcomed the downward revision of HR coil floor prices saying "it was giving undue advantage to one segment while the economic viability of other down stream units had suffered." The very basis for arriving at floor price of $302 per tonne was wrong as these were fixed on the basis of export prices of European mills for the period July-September 1998, when the ruling prices were very high, Corsma executive director SC Mathur said. Corsma said that floor pricesappear to have been fixed on the basis of recommendations of the anti-dumping directorate. The reduction in floor price ranged from $41 per tonne for Cold Rolled coils to $160 per tonne for alloy steel, an official notification said.

The new rates would be effective from November 1 and valid for two months. For HR coils and HR sheets, the reduction was $48 per tonne and the minimum import price for HR coil would now be $254 per tonne as against $302 recorded previously.