Kolkata: Ruias-promoted Essar Steel today slashed retail prices of steel by Rs4,000-5,000 per tonne, a day after JSW Steel and state-run Steel Authority of India (SAIL) reduced prices by Rs4,000-6,000 per tonne mainly due to slackening of demand.
“We have slashed prices by Rs4,000-5,000 a tonne in the retail segment...Retail accounts for 20-25% of the Essar’s total sales,” an Essar Steel spokesperson told PTI.
Essar currently has a steel making capacity of 4.6 million tonnes per annum (mtpa) at its Hazira facility in Gujarat.
It has already embarked on a capacity expansion programme taking the total capacity to around 10 mtpa in which it would be using a combination of blast furnace, corus and arc furnace technologies almost in the same ratio.
SAIL and JSW Steel yesterday announced a price cut in the range of Rs4,000-6,000 per tonne with immediate effect.
Though SAIL had held the price line till October, JSW announced price cut thrice in as many months.
Essar, however, is reducing the price for the first time after holding it since May.
Industry sources said that other steel makers like, Tata Steel and Ispat Industries are also likely to follow the suit.