Steel buyers to discuss price hike

A meeting of the major steel consumers of the country will be held on Thursday to chalk out a detailed strategy amidst indications that steel producers may hike prices following increase in railway freight rates, industry sources said in Kolkata.

They were, however, divided in their opinion regarding passing on the burden of increased freight rates to consumers.

While a few said there might not be any increase in prices for original equipment manufacturers as this might affect long term prospects, others indicated there would be an increase in retail prices in the range of Rs 500 per tonne for flat products from the second week of December.

"We are evaluating the situation emerging out of recent hike in freight rates and any decision (on increasing prices) could be taken only after the consumers' meeting in New Delhi," sources in a private steel company said.

"There is no immediate possibility of increase in prices from the beginning of next month as was expected earlier, official of another company said.

"We are supplying between 60 to 80 per cent of total production to OEMs on long term contract basis and it would not be wise to increase prices after we have signed a contract. This would have negative impact," an official of a steel company said.