The state-owned steel major Steel Authority of India (SAIL) today cut prices of its products by up to Rs 1,500 a tonne in line with the softening global trend and the slackening demand scenario in the domestic market.
"We have cut prices across the board by Rs 1,000-1,500 a tonne due to the prevailing market conditions and softening global trend," a SAIL spokesperson told PTI. The price cut is effective from today.
Steel Secretary Atul Chaturvedi yesterday said steel prices might fall further by another Rs 1,000 a tonne during the month following declining global prices due to the ongoing financial crisis in Europe and demand slowdown ahead of the monsoon in the domestic market.
Prices of long steel products, mainly consumed by infrastructure and construction firms, have already fallen by Rs 5,000 a tonne since April.
Steel prices are hovering in the range of Rs 32,000- 47,000 a tonne now. Private steel makers like Tata Steel and JSW, Essar are likely to follow suit soon. Analysts say the current quarter and the next one could now pose serious challenge to steel makers due to the waning demand and high input cost pressure.
The high prices are attributed to a 90 per cent increase in prices of vital inputs for steel manufacturing, such as iron ore and coking coal as against the comparative year-ago period.