Uttam defies trend, cuts steel prices

Uttam Galva Steels has slashed prices of galvanised corrugated steel products by Rs 3,000 a tonne thanks to the reduced cost of zinc.

"Zinc prices have dropped from $4,000 a tonne to $2,500 in the last six months which had to be factored in," Ankit Miglani, director, commercial, Uttam Galva Steels, said,

During the period, the company had not dropped galvanised corrugated prices.

The new price in Maharashtra, including all taxes, would now stand at Rs 46,000 a tonne.

For the second consecutive month, most other producers, like Essar Steel and JSW, rolled over prices in December after increases in September and October. JSW Steel intends to maintain status quo on the price front till year end.

Seshagiri Rao, director (finance), JSW Steel, said,"We have decided to roll over prices for the month across products. Prices, though, could increase from January.

Rao explained that the cost increases may take place as freight costs were being negotiated along with iron ore contracts.

Moreover, coke prices have increased from $160 a tonne last year to $450 a tonne.

Rao pointed out that prices internationally would increase from January.

Uttam Galva's Miglani added, "Base steel prices, like the hot and cold-rolled varieties, could increase from next month."

According to World Steel Dynamics (WSD), a leading steel information service provider, hot-rolled steel prices are expected to increase to $700-$800 a tonne through 2008 as against an earlier estimate of $550 a tonne this July. The range is way above the alloy's prior peak of $625 in export prices (September 2004).

In August, prices were reduced by Rs 500-1,000 a tonne, which preceded by a partial rollback in March due to intervention from the government to rein in inflation.