Thursday, July 17, 2008

Indian steel firms keen to raise prices

Indian steel firms may seek to raise prices when a self-imposed moratorium ends early next month, but the government is likely to oppose any hefty, inflation-fuelling increase.

Tata Steel's Managing Director B. Muthuraman said on Wednesday Indian steel prices were ruling 15,000-20,000 rupees ($350-$450) a tonne below global rates at a time when rising input costs and freight rates were denting firms' margins.

"There is every justification for increasing prices because input prices have gone up," Muthuraman told reporters at an industry conference. He added the steel industry found itself in an "unnatural situation" which could hurt expansion plans.

Full Story at Reuters

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