Essar, Ispat cut prices by 7-8%

Barely 24 hours after public sector behemoth SAIL cut its prices between Rs 500 and Rs 2,000, domestic steel firms Essar Steel and Ispat Industries today announced cut in their prices by 7-8% due to rising inventories owing to reduced global intake.

"Essar Steel has revised prices for its products in the domestic markets. The prices will be lower by approximately 5-8% and will come into force with immediate effect," an official said.

He said with the import duty now at 5%, domestic steel prices are in line with international rates. Therefore, any decrease or increase in prices are due to the international prices, he pointed out.

Ispat Industries also announced lowering of its steel prices by 7%, again due to rising inventories, company sources said.

Last evening, SAIL cut prices between Rs 500 and  Rs 2,000 per tonne terming it a "temporary correction" owing to market fluctuations triggered partially by China's low intake of steel.

The cut, to be effective from today, was necessitated by the present demand and supply situation, besides lowering of global steel prices, a SAIL.  spokesman had said.

However, SAIL is hopeful that within a month or two, global steel prices would stabilise and the market would again rejuvenate to allow prices to rise.