SAIL, Ispat, Tata Steel hike prices

Faced with a steep rise in the cost of raw materials, Steel Authority of India Ltd, Ispat Industries and Tata Steel have increased prices of their products on Friday, the first day of the new financial year. Others are expected to follow suit.

Tata Steel hiked the long-term contract prices of its flat products by around 20 per cent a tonne.

The public sector steel behemoth SAIL has increased the prices of long products by nearly 5-6 per cent or by Rs 800-1,200 a tonne, and flat products by Rs 1,500-2,000 a tonne, nearly 6-7 per cent.

The P K Mittal-controlled Ispat Industries has raised prices of flat products by Rs 1,000 a tonne (a 3 per cent hike).

A spokesperson of Essar Steel said the company would take a call on the price hike in a couple of days. Uttam Galva Steel has hiked prices by Rs 1,500 a tonne in the domestic market from today for the current quarter

Tata Steel, the largest steel maker in the private sector, has already announced a price hike of Rs 5,000 a tonne. This will be applicable for its original equipment manufacturer (OEM) customers and to be effected from today.

Industry sources said the companies were forced to hike prices following a rise in prices of raw materials—iron ore and coal.

They said long-term contract prices of iron ore went up by over 71.5 per cent, while coal prices increased by more than 100 per cent.

In addition, cost of coke has gone up by 300 per cent, iron pellets by 86 per cent, sources added.

They added that the steel ministry, which intervened in the previous occasions, might not intervene this time around. The ministry had forced steel companies to reduce prices by almost Rs 2,000 a tonne in August '04.

Anticipating a rise in steel prices, automobile companies have decided to raise prices from this month.