NEW DELHI: Major steel producers, including SAIL and Tata Steel agreed on 5 March to cut prices of Thermo Mechanically Treated (TMT) bars, galvanised steel and hot rolled coils after the government asked them to contain prices to keep inflation under check.
Steel utilities including SAIL, Rashtriya Ispat Nigam Ltd, Tata, Essar, Ispat and JSW Steel agreed to reduce prices they had hiked on 1 March after meetings with Steel Secretary R. S. Pandey.
Producers said the hike was a routine activity on first of every month and was based on domestic and international fluctuations, Pandey said.
“However, considering the concerns of the government on inflationary trends in the economy, steel producers agreed to roll back the increase announced on 1 March,” he said.
The prices of hot rolled coils have been reduced to Rs27,000 per tonne from Rs27,500 per tonne. The increase in prices of TMT bars and galvanised steel would be rolled back entirely or about 100%.
Pandey said the profitability of steel companies would not be affected by the reduction.
He also ruled out the appointment of a regulator to check steel prices in the domestic market and said as and when concern is expressed on any issue, the matter is taken up with the relevant auhorities.