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Rediff News  All News  » Business » Secondary steelmakers to slash prices by up to Rs 4,000

Secondary steelmakers to slash prices by up to Rs 4,000

May 14, 2008 16:48 IST
Secondary steelmakers such as Bhushan Steel and National Steel announced on Wednesday up to Rs 4,000 per tonne cut on all flat products, toeing the line of primary producers, even as the government is examining the merit of the steelmakers' request to lower export duty on the metal.

"The secondary steel producers have assured that they will reduce prices of their flat products by Rs 4,000 per tonne and maintain the new price line for the next three months,"  Steel Ministry Secretary R S Pandey said after a meeting with the steelmakers.

He said the government was examining the request by the steel industry to lower export duty. He also made it clear that reduction of prices by steelmakers was conditional as the government had never assured to lower
export duty.

Among the major secondary producers who have decided to slash their prices include Bhushan Steel, National Steel, Surya Steel and Maharashtra Seamless.

The price cut effected by them would help in containing spiralling prices of cold rolled, galvanised steel, tubes and pipes.

The producers have also pledged to import raw materials, process it and export it under the Advance Licensing Scheme to improve the domestic supply-side situation, he said.

Pandey said due to the current fiscal measures taken by the government prices of long steel products have come down by 20 per cent, while that of flat products too have declined.

The secondary steelmakers currently produce about 7 million tonnes of steel in the country.
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