Major steel producers Steel Authority of India (SAIL), JSW and Essar today increased prices by up to Rs 2,500 a tonne due to rising input costs in a move that could make automobiles and consumer durables costlier.
“We have increased steel prices in the range of Rs 2,000-2,500 a tonne, mainly due to rise in raw material prices,” SAIL Chairman S K Roongta told reporters on the sidelines of the SAIL Open Golf Tournament here.
Private steelmakers JSW Steel and Essar Steel also confirmed raising prices.
However, Tata Steel said it had not yet taken a decision on raising prices.
JSW Steel Director (Sales and Marketing) Jayant Acharya said the company had increased prices by 5-7 per cent and would review the rates in mid-April.
“It is a preliminary review. We are partly offsetting the pressure of rise in raw material prices,” he said.
An Essar Steel spokesperson said, “The price increase is in the same range as by other steel producers. It is mainly due to the steep rise in raw material prices.”
The increase in prices by the companies is effective from April 1.
On rising prices in the domestic market, the SAIL chairman said India would follow global markets, where rates had gone up due to an increase in prices of iron ore and coking coal — two key raw materials.
Global mining firms such as Rio Tinto, BHP Billiton, Vale are in the process of entering into new iron ore and coking coal supply contracts with global steel makers.
