Uttam Galva hikes prices by Rs 2,000, Bhushan to follow.
Uttam Galva Steels, the value-added steel producer, has decided to increase galvanised and cold-rolled (CR) steel prices by Rs 2,000 a tonne, marking the second hike this month.
Ankit Miglani, director (commercial), Uttam Galva, said the hike would be effective from August 15. At the beginning of the month, too, the company had increased prices by around Rs 2,000 a tonne.
Miglani said the biggest drivers of demand were the automobile and white goods sectors. He also pointed out that international prices had increased by around Rs 8,000 over the last couple of months.
Hot-rolled (HR) coil, a key input, which was earlier sourced at $400 a tonne, was now hovering around $600.
Bhushan Steel was also likely to hike prices in the second half of the month by around Rs 500. Neeraj Singal, managing director, Bhushan Steel, said prices were increased by Rs 1,000 a tonne about a week back and another hike could happen around August 20.
More From This Section
Singal said, overall the market was improving and there was a strong demand. “There will be shortage,” he said.
Another reason for the increase in galvanised products is zinc prices having shot up on the London Metal Exchange. Prices, which were hovering around $1,500, have risen to $1,900.
Most of the primary producers had increased HR prices at the beginning of August by Rs 500-1,000.
Anil Sureka, director (finance), Ispat Industries, said the market was strong but the company would take a call on price hike towards the beginning of the next month.
While internationally, long and flat product prices were moving in tandem, they were moving in opposite direction in the domestic market.
Long product prices in the domestic market have been reduced by Rs 500-2,300 this month on the back of lower demand from the construction sector.