Galvanised steel prices hiked by 5-7%

Move aimed at maintaining profit margins in face of rising input costs

Domestic steel producers have raised their carbon steel and galvanised steel prices by 5-7 per cent effective May 1. The move is aimed at maintaining the profit margin which was otherwise under squeeze due to the rising input costs.

Essar Steel, JSW Steel Ltd, Ispat Industries and Uttam Galva have raised the prices in the range of Rs 1500 to Rs 2,000 per tonne.

JSW Steel has hiked the price of HR coils by Rs 1,750 per tonne and that of galvanised products by Rs 2,000 per tonne.

Announcing the new prices, MVS Seshagiri Rao, director - finance, JSW Steel, said, "In line with the international trend, we have decided to increase the price both for HR coils and galvanised products. Zinc, one of the basic raw materials for galvanised steel, too continues its upward climb without respite on the LME."

An Essar source said, "We have increased HR coil and galvanised products prices by Rs 1,500-1,700 per tonne in tandem with the international trend."

Ispat Industries raised its HR prices by Rs 1,750 per tonne and galvanised steel prices by Rs 2,000 per tonne effective today.

"Fresh bookings are coming in from construction companies. At the same time, international prices of galvanised steel have gone up dramatically to $580 per tonne which is an all-time high. Hence, we had no option but to raise the price," said a company source. He hoped that the current price would prevail for some time.

According to Ankit Miglani, director, Uttam Galva Steel, said the company was just passing on the additional cost to consumers as margins were being squeezed.

"We increased galvanised steel prices by Rs 2,000 per tonne effective today. This would not increase our margins. We will not suffer losses either," he said.

However, Tata Steel has not yet announced any revision in prices.