Increase in international steel prices and rupee depreciation are the reasons
Mansi Taneja | BUSINESS STANDARD
New Delhi February 03, 2014 Last Updated at 13:14 IST
Increasing input costs have forced steel companies including JSW Steel,
SAIL and Essar Steel to raise steel prices by about Rs 500- 1,200 per
tonne for second consecutive time this year.
JSW Steel has increased prices by up to Rs 1,200 per tonne, or up to
2%, across the board for February, Essar Steel has increased prices by
Rs 1,000-2,000 per tonne and SAIL has hiked by Rs 300-500 per
tonne. The other companies including JSPL might follow suit.
Moreover, increase in international steel prices and rupee depreciation also led to the increase in prices.
SAIL Chairman C S Verma confirmed the hike in steel prices. “We have increased prices by Rs 300-500/tonne
depending upon the grade with effect from February 1. The increase in prices is a direct result of increase in
demand from sectors such as auto, construction and white goods industry.”
He said the worst time for steel sector is over now and the sector is on a revival mode.
JSW Steel Director Commercial and Marketing Jayant Acharya said, “We are going for increase of Rs 700-
1,200 per tonne in all products due rising input costs coming from shortage of iron ore” .
The supply of iron ore has come down offlate, not only from Karnataka market but also in other markets like
Odisha due to non-availability. Freight rates for carrying the ore from mine to steel plant have also been rising
and together with low quality ore available in Karnataka market, the costs on sourcing iron ore have risen by
about Rs 9,000 per tonne .
In January this year, all the major steel companies had increased prices after a gap of 3 months due to subdued