SAIL cuts steel prices further; enters JV with NMDC for Arki limestone mine

16 Nov 2009

The Steel Authority of India Ltd (SAIL) has announced a further Rs500 per tonne reduction in the prices of some products, used primarily by the automobile and the white goods industry, due to weak global demand.

"We have cut our flat steel prices by an additional Rs500 a tonne mainly on the softening global trend. I don't expect prices to fall from this level and it would stabilise at this level," SAIL chairman SK Roongta said at a function to announce a joint venture with the National Mineral Development Corporation today.

The state-run steel producer had reduced prices of its flat steel products by Rs750 to Rs1,500 a tonne earlier this month.
 
The total reduction in steel prices would be between Rs1,250 to Rs1,500 per tonne against the earlier announced Rs750 to Rs1,500 a tonne, a SAIL official said

Private sector steel major Tata Steel had earlier announced a similar reduction in steel prices.

Steel makers, who had in September raised product prices upward by around Rs1,500 a tonne, now say prices are under pressure. They do not also rule out any further reduction in steel prices.

SAIL, NMDC sign MoU for Arki limestone mine development as 50:50 joint venture
New Delhi, 16 November 2009 
 
SAIL, India's largest manufacturer of steel, and NMDC, the country's single-largest iron ore producer, today signed a memorandum of understanding to jointly develop the limestone mine at Arki in Solan district of Himachal Pradesh.