Steel cos cut prices by up to Rs6,000 per ton to keep afloat

Steel cos cut prices by up to Rs6,000 per ton to keep afloat

New Delhi: India’s leading steel producers have slashed prices of their products by up to Rs6,000 a tonne to ward off the threat of cheaper imports from countries like China and Ukraine amid a dip in demand.

State-run SAIL, along with private producers Essar Steel and JSW Steel, announced lowering of prices while the biggest private sector producer Tata Steel is still weighing its options.

The price cut comes even as Industry awaits a government decision on its demand for imposition of 15% duty on steel imports among other fiscal measures.

The steel ministry is, however, believed to have asked the finance ministry for imposing a 10% import tariff.

Leading the price cut, that comes within two days of finance ministry withdrawing a 15% export duty on long steel products, SAIL slashed its product prices by Rs4,000 to Rs6,000 per tonne.

Sajjan Jindal led JSW steel lowered prices of its HR Coil by Rs5,500 a tonne, a third consecutive cut in as many months and Ruia’s Essar Steel revised prices downward by up to Rs5,000 per tonne.

“We are cutting prices of steel by Rs4,000-6,000 a tonne across all our products," a SAIL spokesperson said.

The international prices have corrected in the past two months by around 50% and the domestic prices have been reduced to counter the increasing imports, JSW Steel added.

The prices of hot rolled products, which is the mother input for all flat steel products, is expected to come down to Rs33,000-35,000 a tonne.