Steel firms to revise prices quarterly

Indian Steel Alliance (ISA) "" the association of the leading five steel makers in the country "" will henceforth announce price revisions on a quarterly basis. So far, the steel makers have been revising prices on an ad-hoc basis.

The decision to put an end to ad-hocism on pricing comes close on the heels of indications of a global slowdown in prices in the second half of the year.

It may be noted that the government had earlier suggested a disciplined price increase mechanism to domestic steel producers. However, with prices continuously heading northwards, steel makers did not find the move logical.

J J Irani, chairman of ISA and director, Tata Sons, said: "The members of the alliance have agreed to a policy of changing steel prices on a quarterly basis. This will not only enforce a planned move by all steel companies but will also ensure harmony with government authorities."

Irani further added that global prices are likely to remain at around $500-$520 a tonne till June and indicated that in the later half of the year prices could reduce.