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Leading steelmakers JSW Steel, Essar Steel and SAIL have kept prices of their products unchanged for the current month amid continuing subdued demand, bringing back the haze over the sector that was eyeing a revival in the remaining months of the fiscal.
However, Naveen Jindal's Jindal Steel and Power has hiked the prices of its products by upto Rs 1,000 per tonne, industry sources said.
Officials from JSW Steel and Essar Steel confirmed that they have rolled over the prices for December due to subdued demand as the optimism on demand push during the festive season has faded.
Industry sources said that SAIL has also rolled over prices for December for most of its products. It could not be verified independently.
The market did not witness any major push before or after Diwali and margins of the companies continue to be under pressure, an official of a leading Western India based steel producer said.
According to official figures, steel demand has grown by by just 0.7 percent during April to November period.
"I dont think there will be a price increase but we are also watching what is happening in the international market, where prices are stable right now... Steel demand this fiscal is flattish as steel consuming industries are not growing," JSW Steel's Joint Managing Director Seshagiri Rao had said late last month.
Echoing similar views, industry sources said that outlook is not so good for the remaining four months of the fiscal, unless some major policy decisions to push infrastructure growth happens.
Announcement of general elections can also be a factor in reviving demand to some extent, they said, adding that sales of cars and SUVs pick up during elections, which in turn would lead to demand revival for the flat steel products. However, its impact will be visible mostly in the first quarter of the next fiscal due to lag-effect.
Currently ex-factory prices of long products like TMT bars and structures are hovering in the range of Rs 34,000-36,000 per tonne, while prices of flat products like HR-coil and CR-coil are at about Rs 37,500 and Rs 42,500 per tonne respectively.
Most of the leading domestic producers including SAIL, Essar Steel, Jindal Steel and Power and JSW Steel had raised prices in August and September while expecting a revival in demand in the festival season. Sharp increase in input costs, which happened due to rupee depreciation, was also a major factor in price increases effected then.
However, the companies either reduced or rolled over the prices in October and November due to downward pressure as rupee stabilised a bit and demand continued to remain weak.
