The industry, including major and secondary steel makers, have agreed to reduce prices of pipes and tubes that had turned dearer in June, Steel Secretary R S Pandey said after a 3-hour long meeting with the manufacturers.

The manufacturers said they would fix a price ceiling of Rs 48,000 per tonne for pipes and tubes with immediate effect.

The primary producers, including state-run SAIL [Get Quote], RINL, Tata Steel [Get Quote], JSW Steel [Get Quote], JSPL and Ispat, announced that they would discourage direct and indirect exports of HR coils and subsequently CR coils and galvanised products to increase availability by up to 12 per cent (about 2 million tons) in the domestic market.

The producers also said they will review MRP arrangements with their dealers to cool soaring steel prices at retail level.

"Steel industry has decided to reduce direct and indirect exports of HR coils to enhance its availability in the domestic market, besides reviewing the MRP arrangements with dealers to benefit end consumers," JSW Steel vice chairman and managing director Sajjan Jindal said.

Brushing aside speculations that steel producers are set to increase prices after the three-month self morotorium ends in the first week of August, Jindal said, "It is not necessary that prices will go up from August. We will have to see."

Steel Secretary R S Pandey too endorsed Jindal's views and said that "hoarders thinking that steel prices will go up in August, are in for a surprise."

Pandey hoped that the administrative steps being taken by primary and secondary steel producers would give concrete results within a week.

Asked about the reasons for the rise in retail prices of steel, the secretary said, "It was because of speculation in the market that prices may go up from August that dealers started hoarding, thereby leading to the price rise."

Elaborating on review of MRP concept by primary producers for their dealers, who are so far not covered under this ambit, Pandey said, "Present practice is that for certain quantities of offtake by dealers, the primary producers don't insist on MRP, which they may insist now to benefit end consumers."

SAIL chairman S K Roongta said the company can go to the extent of suspending supply and even cancelling the contract of its dealers if they overcharge from customers.

Speaking on behalf of the primary steel producers, Jindal said the steel industry is deeply distressed over increasing prices at retail level and will support the government in containing inflation.

Prices of iron and steel products are already pushing up inflation, which spiralled to a 13-year high of 11.42 per cent for the week ended June 14.

As per latest data of Joint Plant Committee, authorized by the Ministry of Steel, retail prices of flat and long steel products have surged about 25 per cent in the domestic market in over a month, even as the government pegs the figure at something over 10 per cent.