Leading steel makers JSW Steel, Ispat and Essar have cut down their steel prices by Rs 2,000 per tonne effective September 1.
Anil Surekha, executive director- finance, Ispat Industries confirmed that the company has reduced its steel prices by Rs 2,000 per tonne. Commenting on the steel prices, steel minister Ram Vilas Paswan on Tuesday was reported as saying, ?We feel prices of steel should come down. Domestic steel makers have been asked to cut steel prices as international prices of steel have already started coming down. There is no justification for steel companies making profit in excess of 15%. In fact, they should decrease prices.?
The CFO of JSW Steel Ltd, Seshagiri Rao told FE , ?Global prices have come down and hence, we have reduced ours.?
Similarly, an Essar Steel spokesman said, ?Prices have been corrected where warranted.? However, according to a Mumbai based analyst, ?The cut in the steel prices could be mainly due to the government pressure more than the global prices coming down. We expect a hit of 1% on companies? operating margins in Q3.?
Steelmakers have been holding domestic retail prices since May. It was understood that steel manufacturers would increase the steel prices as the voluntary industry moratorium of three months, to hold steel prices, ended on August 7.
