Galvanised Steel To Cost More

Mumbai, Nov 10: | Updated: Nov 11 2003, 05:30am hrs
Domestic galvanised steel producers are planning to implement a price hike in the region of Rs 700-1,000 per tonne in the next few weeks. This comes in the backdrop of international steel prices steadily moving up from $330 to about $365 per tonne for hot rolled (HR) coils and $20-$40 per tonne for galvanised steel.

According to steel industry sources, given the fact that HR coil prices are steadily moving up, it is only natural that galvanised steel prices too move up. A steel analyst said that given market conditions, a price increase in galvanised steel is expected by the end of this month or early December 2003.

Jindal Iron and Steel Company Ltd (Jisco) joint managing director and chief executive officer Raman Madhok told FE that Jisco will be looking at a price hike in the range of Rs 750- 1,000 for its galvanised steel in the next few weeks.

Currently, on an average, galvanised steel costs Rs 34,000 per tonne and this may go up to Rs 38,000 per tonne in the coming months.

He said that this is with respect to the fact that globally, HR coil prices have been steadily rising along with zinc prices.

Sources said that Tata Steel is also positively considering a hike in galvanised steel prices even as they continue to sell at around Rs 1,000 more. However, Tisco officials were unavailable for comment.

According to an industry official, internationally, HR coil prices is seen to have risen about $25 per tonne and China seems to be leading the pack with its prices now touching roughly $365 per tonne.

The officials added that European producers are also looking to hike prices in the next few weeks. However, when asked whether domestic HR prices would be hiked, he said that as of now, there are no plans of doing so.

Domestic HR coil prices had in September moved up by Rs 500 per tonne, pushing prices to the Rs 18,000-Rs 20,000 per tonne range. Industry observers said that volumes will also increase in the days to come, as demand for steel goes up.

An industry observer said that price trends in China indicate an upward movement, since early August and is likely to continue moving up. HR coil, cold rolled coil (CR) and galvanised prices in western Europe are also expected to rise in the coming weeks.