Galvanised steel gets costlier on input spike

FERROUS, NON-FERROUS METALS ON THE BOIL

Spiralling zinc prices in the international market have forced domestic galvanised steel producers like Uttam Galva Steel and JSW Steel to raise their basic selling prices by Rs 3,500 per tonne and up to Rs 4,500 per tonne respectively effective from Monday.

Uttam Galva Steels, the country's second-largest galvanised steel manufacturer has decided to increase the prices across all its product categories consisting of cold-rolled steel, galvanised steel and steel by-products by Rs 3,000-4,500 per tonne. The company attributed the present price hike to the exponential growth in input costs.

While JSW Steel, one of the largest steel producers in the country, announced the rise in the tune of Rs 2,000-2,500 per tonne of HR coils and Rs 3,500 per tonne of galvanised steel with similar effect.

"The price hike in the HR coils segment is influenced by the trend in the international market. Last few weeks have seen a price rise in the US and Europe and China steel markets. This rise in price in the Indian market reflects the international trend," said MVS Seshagiri Rao, director-finance of the company.

"Zinc on the other hand has just been spiralling up on the LME, which in turns dictates the galvanised steel prices. Increased input costs and freightage are other considering factors," he added. Keeping in mind the pickup in demand both internationally and domestically, the markets would absorb the hike, Rao hoped.

Among the steel producers, Essar Steel is believed have raised prices by 6-8 per cent, while Ispat Industries has not yet made a decision on the same.

However, sources in the Ispat Industries said that the company might revise its basic steel prices as all the players in the industry were doing so. But, a final decision on the same would be taken at an appropriate time, they believed.

"If winter comes, can spring be far behind?" In order to not leave any opportunity for generating more revenue from the market, Tata Steel raised its HR basic selling prices for non-contracts by Rs 2,000-2,500 per tonne effective April 1.

The company is still negotiating the final prices for contracts. As a matter of policy, Steel Authority of India (SAIL) does not disclose the pre-publication prices.

Therefore, the prices revised by SAIL would be known only on Monday. But a source close to the situation said that SAIL had also revised its output prices in the same range.