Steel price likely to stay stable: Ispat

Written by Agencies | Kolkata, August 28: | Updated: Aug 28 2008, 21:03pm hrs
Short term steel prices are likely to stay stable with the steel product prices reducing by 5-10 per cent in the recent past, said Ispat Industries Ltd Chiarman P K Mittal at the annual general meeting on Thursday.

Speaking at the AGM in Kolkata on Thursday, Mittal said the company has also decided to reduce its exposure from the spot market to long term contracts to reduce the risks of a volatile market.

The government had urged secondary steel producers to keep prices under check to keep inflation at a manageable level.

Meanwhile, Ispat said it was implementing a Rs 3,400- crore investment plan.

Ispat has formed a JV with a British trading firm Stemcor for the two-million tonne coke oven plant. Stemcor would hold 7 per cent and Ispat 26 per cent.

"The financial closure for both coke oven plant and pellet plant was expected to be done shortly," Mittal said.

Asked about delay in repayment of dues to institutions in 2007-08, Mittal said, "Now all repayments have been regularised."

Auditors in the 2007-08 annual report noted delay of repayment to the extent of Rs 2,584.03 crore, which included Rs 1,280.07 crore toward working capital and Rs 328.79 crore in arrears.