After SAIL, Essar, Ispat & JSW pare flat prices
By fe Bureaus
After Steel Authority (SAIL.NS : 191.25 -0.85) of India Ltd (SAIL) reduced prices of flat products by Rs 750-1,500 a tonne across categories on Monday, other steel majors, including JSW Steel, Essar Steel and Ispat Industries (NIPPONDEN.NS : 0 0), on Tuesday announced a price cut in the range of Rs 700 to Rs 1,500 a tonne. The price cut is effective from November 1. Seshagiri Rao, joint MD and Group CFO, JSW Steel, told FE, We have reduced our flat steel prices 3-5%, due to appreciation of the rupee to Rs 47 from Rs 48.50, and also due to the fall in prices in the Chinese market, impacting the global prices. Essar Steel Ltd is also understood to have reduced the prices of flat steel by Rs 700-1,000 per tonne in line with the market trend. Repeated calls made to a Tata Steel (TATASTL.BO : 544.9 +1.45) spokesperson went unanswered. Vinod Garg, executive director (commercial), Ispat Industries Ltd, said, We have cut flat steel prices 3-4%, that is, by about Rs 1,000 per tonne due to the weakening of the dollar. The international market in general is weak. A spokesperson from a steel company requesting anonymity said, Cheap imports from China, Russia and other European countries are surging in the country putting pressure on domestic steel prices. Cheap imports have become a concern for domestic steel players and Indian steel manufacturers are seeking protectionist measures to curb the surge in imports. According to data published by the steel ministry, steel imports jumped 9% to 8,00,000 tonne in August compared to same period last year. Steel prices in China, the largest producer and consumer of steel, have tumbled to around $500 per tonne level at the end of September from their August peak, improving the prospects of cheaper imports to replace Indian products. HM Nerurkar, MD of Tata Steel, while announcing the company s standalone Q2 results had said, Volumes are moving up, but prices have been under pressure due to cheap imports. The current level of prices will prevail till the end of the fiscal. Domestic steel producers had, in the last quarter, hiked prices of flatsteel to Rs 1,000 a tonne on the back of buoyant domestic demand. Prices of flat steel products, that are used by the consumer durables and the automobile industry, are currently in the range of Rs 30,000-32,000 a tonne in the domestic market. According to an Angel Broking report, Average domestic HR (hot-rolling) prices during the quarter were higher by 8% Q-o-Q at Rs 32,667 per tonne (Rs 30,333 per tonne). However, prices are still lower by 24% y-o-y compared to Rs 43,167 per tonne last year. Experts say steel demand in the current quarter will remain at the same level as it was in the last quarter. Similarly, prices are also expected to be stable from here on.
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) of India Ltd (SAIL) reduced prices of flat products by Rs 750-1,500 a tonne across categories on Monday, other steel majors, including JSW Steel, Essar Steel and Ispat Industries (
) spokesperson went unanswered. Vinod Garg, executive director (commercial), Ispat Industries Ltd, said, We have cut flat steel prices 3-4%, that is, by about Rs 1,000 per tonne due to the weakening of the dollar. The international market in general is weak. A spokesperson from a steel company requesting anonymity said, Cheap imports from China, Russia and other European countries are surging in the country putting pressure on domestic steel prices. Cheap imports have become a concern for domestic steel players and Indian steel manufacturers are seeking protectionist measures to curb the surge in imports. According to data published by the steel ministry, steel imports jumped 9% to 8,00,000 tonne in August compared to same period last year. Steel prices in China, the largest producer and consumer of steel, have tumbled to around $500 per tonne level at the end of September from their August peak, improving the prospects of cheaper imports to replace Indian products. HM Nerurkar, MD of Tata Steel, while announcing the company s standalone Q2 results had said, Volumes are moving up, but prices have been under pressure due to cheap imports. The current level of prices will prevail till the end of the fiscal. Domestic steel producers had, in the last quarter, hiked prices of flatsteel to Rs 1,000 a tonne on the back of buoyant domestic demand. Prices of flat steel products, that are used by the consumer durables and the automobile industry, are currently in the range of Rs 30,000-32,000 a tonne in the domestic market. According to an Angel Broking report, Average domestic HR (hot-rolling) prices during the quarter were higher by 8% Q-o-Q at Rs 32,667 per tonne (Rs 30,333 per tonne). However, prices are still lower by 24% y-o-y compared to Rs 43,167 per tonne last year. Experts say steel demand in the current quarter will remain at the same level as it was in the last quarter. Similarly, prices are also expected to be stable from here on.
