After a fresh round of price hike early this month, Indian steel manufacturers are expecting one more round of price rise next month, and this time, by about Rs 500-1,000 per tonne, say industry players. Jayant Acharya, director (sales & marketing), JSW Steel said, ?We will review the prices according to the markets. Internationally, steel prices and demand have improved post June-July and we have raised prices in September accordingly. We are watching the market situation,? he said.
?The possibility of price hike in October certainly exists as globally prices are increasing and after decline in prices, we are now witnessing prices firm up again in the international markets,? said a Mumbai based steel major, requesting anonymity.
Steel makers including JSW Steel, Tata Steel, Ispat Industrie and Essar Steel, among others, have hiked flat steel prices by Rs 750-1,500 per tonne effective September 1. Flat steel prices in the domestic market are currently Rs 38,000 a tonne, while the landed cost of imports are
Rs 28,000 to Rs 30,000 a tonne. Long steel prices in India range between Rs 30,000 to 32,000, say experts. Flat steel is primarily used by the automobile industry and long steel is used in the construction activity.
Anil Surekha, director-finance, Ispat Industries told FE, ?There is a possibility that we may hike prices once more in October. The industry was not able to pass on the earlier cost push due to severe dumping of steel in the Indian markets,? he said.
Experts say the production cuts and rise in prices in China has come as a positive news for Indian steel players.