New Delhi: Tata Steel today increased prices of its products by up to Rs 1,500 per tonne, mainly on account of rising demand.
“We have increased prices by around 3%,” a Tata Steel spokesperson told PTI. Industry experts said that around 3% increase announcement by the leading steel major may jack up the rates of its various products by Rs 1,500 a tonne.
The move by Tata Steel follows a similar hike by steel makers like Steel Authority of India Ltd (SAIL), Jindal South West (JSW) and Essar Steel last week.
While SAIL hiked the prices by up to Rs 1,000 a tonne, JSW Steel and Essar Steel increased rates by up to Rs 1,500 a tonne across different products.
Flat steel products are mainly used by industries like auto and consumer durables. Long steel items are consumed mainly by construction and infrastructure companies. On an average, steel prices are in the range of Rs 30,000-40,000 a tonne now.
“The upswing in demand and rise in cost of raw material has pushed up steel prices,” Jindal Steel and Power Ltd director Sushil Maroo had said last week.
Steel makers also said that the automobile industry has seen unprecedented sales of vehicles in the past few months and the trend is most likely to continue during the Durga Puja, Dussehra and Diwali season, pushing up the demand for steel.
Essar Steel had said earlier last week that domestic prices are still lower than global rates and margins remain under pressure due to higher input costs.
Iron ore prices have gone up by up to about Rs 3,300 a tonne from Rs 1,900 a tonne earlier this year. Coking coal prices are also hovering in the range of $200 a tonne as against $125 a tonne last year.
After remaining almost stagnant for about past 2-3 months, steel prices went up by about Rs 1,000 a tonne last month mainly on account of the rising global trend.
Global prices of key steel products have gone up by about $50 a tonne in the past two months to $700 a tonne.
India has an annual production capacity of about 7.2 crore tonnes. SAIL, JSW Steel and Tata Steel are the market leaders in terms of market share.
Steel Minister Virbhadra Singh had earlier said that steel demand in the country would go into double digits in the next fiscal as compared to the 7.6% growth to 5.632 crore tonnes in 2009-10.