The steel ministry's meeting with the country's major steel producers on price cut on Tuesday ended inconclusively. The two sides are expected to meet again in another two-three days.
"We had a fruitful discussion with the producers and hope it would result in some good. A second meeting will take place in the next 2-3 days", J S Sarma, the steel secretary, said after the meeting.
Sources close to the development said the ministry requested a rollback of Rs 1,000 in TMT bars, which is used for construction, in the long products section and Rs 500 in hot-rolled products.
"The government's concern is the rising prices of long steel products like bars and angles, which is used by the common man. They are keen to see a price reduction in such products. However, it has left the quantum of price cut to the producers," said an industry official who attended the meeting.
Most steel producers have increased steel prices by an average Rs 2,500 a tonne with effect from February. Earlier in January, prices were hiked by Rs 600-900 a tonne.
Steel producers say the price hike is due to an increase in input costs by Rs 6,000-7,000 a tonne on account of higher prices of iron ore and coking coal, the two main inputs.
The private sector steel-makers, who account for around two-third of the production, have said they would rollback prices if NMDC and Kudremukh Iron Ore Company Ltd (KIOCL) rolled back their hikes. NMDC iron ore lump price increased by Rs 1,527 in April-February 2008 and fines by Rs 1,222 while KIOCL pellet price increase was Rs 3,900.
Steel Minister Ram Vilas Paswan said earlier this month that the government wanted to ensure that the prices were justified and in tune with the rising cost of raw materials.
Representatives from leading steel producers like Steel Authority of India Ltd, Tata Steel, Jindal Steel Works and Ispat Industries met the steel secretary on Tuesday.
The next meeting is likely to be held on 15 February.
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