By Debarati Roy/ Bloomberg
Mumbai: Uttam Galva Steels Ltd, India’s second-largest producer of galvanized steel, raised prices of some products for the third time this year because of rising demand from makers of automobiles and home appliances.
Prices for long-term customers were raised by an average Rs4,500 a tonne or 10% said finance director Ankit Miglani on 2 May. The price of cold-rolled coil was raised by as much as 16% to Rs35,000, he said.
Sales at the nation’s biggest carmakers Maruti Udyog Ltd and Hyundai Motor Co. and their local rivals are increasing as rising incomes make cars and home appliances more affordable. India, Asia’s fourth-largest economy, likely grew 9.2% in the year ended 31 March, the most in almost two decades.
Galvanized steel accounts for 80% of the company’s revenue and cold-rolled steel brings in the rest. The company sells its products to automakers including Mahindra & Mahindra Ltd, Bajaj Auto Ltd and Tata Motors Ltd.
Tata Steel Ltd, the world’s sixth-biggest steelmaker, may also raise prices for long-term users, deputy managing director T. Mukherjee said from Jamshedpur. Rival JSW Steel Ltd, managing director Sajjan Jindal said on 30 April prices may be raised for products sold in the spot market.