On the back of strong domestic demand and better international prices, steel makers in India are contemplating a price increase in December. Tata Steel, JSW Steel, Ispat Industries confirmed this to Business Standard, but none was ready to comment on the quantum of rise.
Hemant Nerurkar, managing director of Tata Steel, said, "In the spot market, I think as the month passes by, we may increase prices, as I can now see that there is good demand." He said the domestic demand should continue to be strong and the market had the ability to absorb higher steel prices.
Jayant Acharya, director, commercial and marketing, JSW Steel, said, "There is a strong case for prices to go up and we will see how it pans out."
Adding: “In November, we had cut prices by two per cent and December will see some upward correction in prices."
Vinod Garg, director, commercial, Ispat Industries said, "The market is now better as compared to the previous months and therefore, there is a scope to have better prices."
The company rolled back prices by three per cent in November and Garg indicated that would be the quantum of increase.
On November 1, C S Verma, chairman of Steel Authority of India (SAIL), said the company expected prices to improve marginally from the second week onwards. Verma was unavailable for a comment.
SAIL, JSW Steel and Ispat Industries cut steel prices by two to three per cent in November. Acharya said, "There was a small dip in prices in October and November, but prices internationally are now moving up. The auto and consumer durable demand is looking good and the construction sector is also starting to buy steel post the monsoon lull."
Nerurkar said, "Steel prices were very good in February, March, April and then June onwards, prices came down. Now, for the rest of the year, we should be OK."
