Friday, July 18, 2008

More steel strip price increases likely in India

Automobile makers and construction firms could face another round of cost push from next month.
Taking a cue from primary steel or hot-rolled coil (HRC) makers, leading secondary steel producers, including Bhushan Steel and Uttam Galva, are also looking at raising price of cold-rolled coils (CRCs) and galvanised sheets by 15-20% next month. HRC is used for making CRC, which is primarily used in the construction and automotive sector.
At present, while HRCs are priced at Rs 36,000/tonne in the domestic market, CRC prices are hovering at around Rs 41,000/tonne. Primary steel players may go for another round of price hike in August to protect their margins on the back of soaring raw material prices, sources said. In the past four months alone, steel prices have surged by almost 30%.
After the government’s intervention in May this year, steel producers had rolled back prices by Rs 4,000/tonne and promised to hold prices for a 3-month period, which ends in the first week of August.

Full story EconomicTimes

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