Galvanised steel prices hiked by Rs 500-1000/tn

Most of the major steel players have announced an increase in galvanised steel prices by Rs 500-1,000 per tonne.

JSW Steel and Ispat Industries have hiked galvanised steel prices by Rs
500-750 per tonne on the back of rising zinc prices. Uttam Galva has increased prices in the range of Rs 500-1,000 per tonne.

Tata Steel, however, has kept prices unchanged. A Tata Steel spokesman said galvanised corrugated sheet prices are reviewed on a quarterly basis.

Industry sources said that zinc prices have increased by almost 10% over
the last couple of days putting pressure on the bottomline. Steel makers use 40 kg of zinc for every tonne of galvanised steel. "Zinc prices are now at a premium of $300 per tonne," they said.

Zinc prices on the London Metal Exchange (LME), which were hovering around $3,100 per tonne a couple of weeks back, were now at $3,750 per tonne.

Ankit Miglani, director (commercial) of Uttam Galva, said the increase in spot prices was with immediate effect but the company anticipates another hike in the middle of the month.

While JSW Steel's price revision was with retrospective effect from September 1, 2006, the hike by Ispat Industries was with immediate effect.