Steel makers cut prices by up to Rs 750 per tonne

Domestic steel makers today lowered prices of products by up to Rs 750 per tonne to align with landed import costs amidst subdued demand.
Effecting a price cut during this time of the year, which is considered as peak consumption period, may put further strain on the margins of steel makers, an analyst said.
JSW Steel in a statement said it has cut hot rolled coil prices by Rs 500-750 a tonne and wire rod prices by Rs 500 per tonne. It has 14.3 million tonnes per annum (mtpa) of the country's total installed capacity of around 95 mtpa.
Essar Steel said, "Prices are by and large rolled over barring minor corrections in certain product categories."

Steel makers generally revise prices in tandem, but the price cut by other steel makers could not be verified individually.
"Considering international steel prices and appreciation of the Indian rupee, the company has adjusted domestic prices downward to align it with the landed cost of import," Jayant Acharya, Director (Commercial and Marketing), JSW Steel said.

India's steel demand had remained subdued in 2013-14 with consumption growth remaining below 1 per cent mainly impacted by slower economic growth and poor off-take from end-use segments such consumer durables and auto sector.
India Ratings had earlier said that margins of steel producers would continue to be under pressure, given the high cost of steel production and their limited ability to pass on hikes in costs as only a modest improvement in demand was expected in FY'15.

Contending that domestic demand had seen an improvement in last quarter of 2013-14, Acharya said, "We are optimistic that steel consumption will rise in the current fiscal by around 5-6 per cent in line with the projected GDP growth of the country."
Tata Steel Managing Director T V Narendran had recently said that he was hopeful of steel demand picking up next fiscal by at least six per cent as the country's economy was projected to grow by 5-7 per cent.