Keeping in line with the global price movement, Steel Authority of India Ltd (SAIL) today cut its product prices by Rs 1,000-1,500 a tonne.
“We have brought down prices of various products in the range of Rs 1,000-1,500 a tonne to align with the global trend,” a company spokesperson said.
Global steel prices have declined nearly 15 per cent over the last month due to weak demand in the wake of the European crisis.
On Monday, Steel Secretary Atul Chaturvedi had said that steel prices had been falling and would drop further next month.
JSW Steel was also likely to announce a price cut later today, a company official said.
“Spot prices for long products are volatile and we change them several times a month. For flat products, there is likely to be a reduction in prices this month because of a decline in international prices,” JSW Steel’s Joint Managing Director M.V.S Seshagiri Rao said.
“However, there are no signs of tapering in the domestic demand,” he added.
Steel prices are likely to cool further in the coming months as demand from real estate and construction sector usually slows down during monsoon.
Shares of SAIL closed at Rs 198.60 on the National Stock Exchange, down 3.8 per cent from previous close. JSW Steel closed at Rs 1,054, down 4.9 per cent.
