Galvanised steel firms to hike prices

Days after the country's largest zinc producer, Hindustan Zinc, announced a sharp increase in base prices of zinc, the domestic galvanised steel manufacturers, including JSW, Uttam Galva and Essar Steel, are expected to pass on the price rise to consumers.

When this happens, it will be the second hike in the last two weeks. Galvanised steel prices saw a scheduled increase in prices by Rs 1,500 a tonne at the beginning of the month.

According to sources, Uttam Galva will be increasing galvanised steel prices by Rs 750 to Rs 2,000 a tonne, followed by JSW Steel, which is expected to hike prices by Rs 1,500. The price rise by both the companies are likely to be seen this week.

Officials from Essar Steel said the company will not be raising prices for the moment, as its agreements are on a long-term basis. But, there will be a revision in prices next month, they said.

Ankit Miglani, director, commercial, Uttam Galva, said, "Due to rising international prices of zinc, the Indian steel industry is coming under pressure. We have no option but to pass on the rise to the customers."

Zinc prices, a critical ingredient for making galvanised steel, are still rising on the international metal exchanges. It takes about 40 kg of zinc to make a tonne of galvanised steel.

Internationally, zinc is currently trading at $4,300-4,500 a tonne. Hindustan Zinc raised the price to Rs 2,21,800 a tonne, with the company effecting an increase of Rs 9,500 earlier this month.