New Delhi: Domestic steel producers like Essar, Ispat and JSW have reduced product prices to maintain their market share in the wake of a rise in imports and rupee hardening.
“Rising imports coupled with rupee appreciation has led major steel producers to reduce prices. JSW reduced price of Hot Rolled coils by Rs 800 while Essar has lowered prices of its flat products by Rs 700 to Rs 800,” steel industry sources told PTI.
Ispat Industries too has lowered prices of some of its products by about Rs 500, sources said and pointed out that leading steel maker Tata is also expected to reduce its prices this week.
However, spokespersons of these companies did not confirm the same.
According to the Steel Ministry, steel imports have risen by 11.1% during April and May this year while exports shot up by 7.6% in the same period.
The steel industry is apprehensive that rupee appreciation could lead to a glut situation as offtake would slow down.
However, the Cold Rolled Steel Manufacturers Association has alleged that by exporting HR coils, the leading steel producers were creating artificial shortage in the market and thereby jacking up prices.