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Steel prices dip up to 6% in last fortnight

Steel prices dip up to 6% in last fortnight
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First Published: Fri, Jul 25 2008. 04 00 PM IST
Updated: Fri, Jul 25 2008. 04 00 PM IST
By PTI
New Delhi: Government today said steel prices have declined up to 6% during the last fortnight on the back of measures taken by primary steel producers to check the alloy prices at retail levels.
“During the last fortnight, steel prices in respect of pig iron, ingots, rounds, TMT, angles, plates, GP sheets and sponge iron have come down in the range of 3-6%,” an official statement said.
It added that retail prices of hot-rolled (HR) coil, cold-rolled (CR) coil and wire rods have also shown a downward trend, mainly on account of “strict vigilance exercised over the dealers”.
Despite primary steel producers such as SAIL, Tata, JSW, Essar, Ispat and JSPL holding their price line since 7May, steel prices had shot up by around 25% at retail levels in June.
Concerned over the price rise, the Steel Ministry had called a meeting of the producers in early July, wherein it was decided that the steel companies would discourage exports and review MRP arrangement with their dealers. Pipe and tube manufacturers had also reduced their rates by Rs10,000 a tonne.
Days after, state-run Steel Authority of India asked the companies with whom it has log-term contracts for supply of HR coils to limit their retail margins within Rs1,200 per tonne of steel. It also warned them of punitive action if they resold the products procured from it.
Similarly, Essar Steel has established hyper marts in almost all the states for sale of flat products of common categories of HR and CR coils. Tata Steel too is selling its flat products through marketing department of the company.
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First Published: Fri, Jul 25 2008. 04 00 PM IST
More Topics: Steel | prices | pig iron | ingots | rounds |