Steel majors Tata Steel and Rashtriya Ispat Nigam Ltd have raised prices by Rs 300 to Rs 1,000 a tonne for long products, used in the construction industry, marking the first rise since prices crashed in the middle of last year.
Tata Steel has increased spot prices Rs 300 to Rs 500 a tonne on some long products, while public sector steel producer RINL has increased rebar prices by Rs 500 to Rs 1,000 a tonne. Rebars, which are also long products, are currently ruling at Rs 32,000-33,000 a tonne.
C G Patil, director (commercial), RINL, said this was the first increase since July-August, when prices started dropping. The increase was on the back of lower production owing to power cuts.
Patil said this was seasonal and the market could see some correction again during the coming monsoon, when demand would be lower. A Tata Steel spokesperson said this was a market correction.
The price increase was effective May 1.
A Steel Authority of India Ltd spokesperson said the company was yet to raise prices. Patil said the coming quarter looked better, as prices in Europe had stabilised.
Secondary steel producers have also increased prices. Bipin Vohra, chairman and managing director, SPS Steel, said the company had raised the price of TMT bars (also a long product) by Rs 800 a tonne. SPS manufactures around 40,000 tonnes of TMT bars and is the second-largest player in the eastern region at the retail level.
Secondary steel makers account for around 50 per cent of the total long product output of around 32 million tonnes.
Vohra said the price increase was temporary, as demand had surged on account of production cuts. "Once normal production is resumed, prices will come down," he said. SPS TMT bars are currently priced at Rs 36,500 a tonne.
