Galvanised steel prices hiked

Rising zinc rates push prices up by Rs 1000-Rs 3500.

Steel companies have increased the prices of galvanised products by Rs 1,000 to Rs 3,500 a tonne on the back of rising zinc prices and strong domestic demand.

JSW Steel, Steel Authority of India Ltd (SAIL) and Ispat Industries have increased prices by Rs 1,000 a tonne, Essar Steel by Rs 1,500 a tonne and Uttam Galva by Rs 2,000-3,500 a tonne. The increase is with effect from Wednesday.

Industry sources said prices could be reviewed again over the next fortnight. Hot rolled coil prices have been kept unchanged.

"The price hike for galvanised steel has been necessitated by the steep increase in zinc prices in the international markets," M V S Seshagiri Rao, director, finance, JSW Steel, said.

Zinc prices had increased by $800-900 a tonne in the international market in the last 30 to 35 days. "This increase in galvanised steel prices in the Indian market reflects only a part of the increasing impact of raw material price," said Rao.

Uttam Galva increased its list price by Rs 2,000 a tonne, but the actual price was increased by Rs 3,000-3,500 a tonne.

Uttam Galva officials said it was a combination of factors leading to the rise. Zinc prices apart, inventories in the domestic market are very low.

"People are now willing to buy at any cost," said a source. The average galvanised corrugated (GC) prices in Maharashtra are around Rs 50,500 a tonne, up from January's Rs 34,000 a tonne.

Essar Steel has increased prices by around Rs 1,500 a tonne. Tata Steel reviews galvanised prices on a quarterly basis. A Tata Steel spokesman said prices had not been changed. Ispat Industries has raised prices by Rs 1,000 a tonne.

Vinod Garg, director, marketing, Ispat Industries, said the increase is led by zinc prices. He added that the demand for flat products in the domestic market would increase 10 to 12 per cent in the current financial year over that of the previous year.

For hot rolled coils, Garg felt prices would be stable in the short term.

"Up to the end of the year, the prices look good," he said. Ispat expects further increases in galvanised prices.