Steel traders expect price hike next week

Despite the government's appeal to steel companies not to go for price hikes, major companies may raise their prices from Monday, Sampat Totla, president, Steel Chamber of India, said today.

"Belying expectations, no government decision came on April 9 on steel plants' demand to increase prices. Steel plants, unlike cement plants, have so far honoured the government's appeal against price hikes," Totla said.

"Price hikes demanded by steel plants look inevitable, as their production cost has jumped by Rs 1,500 per tonne. There are indications that they may announce price hikes on Monday," he said.

Totla said that thus far only Visakhapatnam Steel Plant (VSP) has increased prices of its products such as building structural sections, girders and beams by Rs 800 per tonne, with effect from April 1.

"Other plants are more likely to follow VSP. Monday is the deadline given by steel plants to the government for its nod to price hikes, failing which steel plants will follow cement plants, which have already jacked up prices," he added.