Steel makers agree to cut prices by Rs2,000 per tonne

Mumbai: Major steel producers in the country, including SAIL, Tata Steel and RINL, have agreed to roll back prices of long steel products by Rs2,000 per tonne and galvanized corrugated steel by Rs500-1,000 per tonne.

The government at a meeting with representatives of steel industry today convinced major steel producers to roll back prices as it continued working on all fronts to control rising prices.

"Producers of long steel products like TMT bars, prices of which had increased sharply, have agreed that they will roll it back,'' steel secretary R S Pandey said after a meeting with steel producers.

''It is expected that these companies, including Tata and state-run RINL, will provide a relief of Rs2,000 per tonne to ensure that common man is not hit," he added. He pointed out that prices of another steel product, GC sheet, which has also increased recently, will be reduced by Rs500-1,000 per tonne. Besides, Pandey said, major steel utilities have decided to increase the allocation to small and medium steel producers by 20 per cent to six lakh tonnes from 4.9 lakh tonnes. They will also bear transport charges of Rs400 per tonne in addition to Rs550 per tonne being already provided.

He said the steel companies would also adopt a transparent pricing system and regularly update their respective company portals on prices. State-run SAIL and RINL, Tata Steel, JSW, Jindal Steel and Power Ltd, Essar, Ispat and Bhusan Steel and Power Ltd attended the meeting.

Pandey said the prices of secondary steel products have already come down by Rs1,600-2,000 per tonne.

He, however, pointed out that steel mills had increased prices by only Rs7,000 per tonne last year against a Rs15,000 per tonne rise in input costs.

The steel ministry, he said, favoured an ad-valorem tax on export of iron ore to minimise the shortage of the raw material in the country.