Steel makers likey to cut prices amidst global slump

Mumbai: Major steel companies in the country may reduce product prices amidst a softening of global steel prices, official sources said. Sources also ruled out any upward revision in the prices in the near future as steel, like oil, begins to feel the pangs of a global slowdown.

Steel ministry officials did not give any time frame for bringing down prices, but noted that steel prices are falling on the domestic market as well.

''Since the global prices of steel are softening, we do not see any immediate reason to go for any upward revision. Instead, the companies should think in terms of further reduction in the prices of steel,'' steel secretary Pramod Rastogi said at a press conference.

Steel Authority of India (SAIL) chairman and managing director S K Rungta said the company would maintain the current price level. ''There is no immediate plan to hike the prices,'' he said. ''We will maintain the current prices,'' Rungta added.

Steel makers, including public sector SAIL, and private sector majors like Tata Steel, Essar Steel and others had agreed to a price cut of Rs4,000 per tonne on flat products and Rs2,000 per tonne on structural steel for the next three months. Prices have been under check since then except in some market segments where prices are reported to have shot up.

While the steel makers have more or less complied with the government's demands, Rastogi said the government would have to step in if there is a hike in prices.

''Government has options, we will examine the case if the prices are increased,'' he said, adding, the the government was seeking long term supply agreements with steel producers and miners to ensure supply security and check price volatility.