Ms. Akash Menon
(Tradeindia Expert)
MD
M/S Menon Exports and Designing Ltd.
New Delhi, India
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TOPIC : Steel prices likely to go up
After a price cut last month, India steel companies are now ready to get back with a bang as international steel market is picking up and festive demand is all set to kick in.
"Because of rise in input prices, Chinese companies are increasing the prices. So if international prices go up, even in domestic markets we will raise prices," said Sajjan Jindal, VC & MD, JSW Steel.
Industry experts expect the Chinese steel prices to go up by five – eight percent due to a jump in the iron ore prices from $75 per tonne levels early this year to above $130 currently.
With the international steel prices going up, domestic steel makers now have the legroom to push up prices. Imported steel costs around Rs 25,500/tonne while the Indian steel costs Rs 26,500-27,000/tonne and the dynamics will change soon.
"Steel prices are decided by the market forces," said Koushik Chatterjee, VP (Finance), Tata Steel.
September will be the inception of a season of good steel demand in India and the Indian steel companies will not miss this opportunity to hike steel prices and improve their realizations.
In a scenario where there is no threat from cheaper imports and the demand is also on a rise, the steel industry has good times ahead.
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TRADE INDIA MAIL
