Government says steel prices dipped up to 14 per cent in May
Prices of flat and long steel products have plunged by up to 14 pc in May following government's measures to control inflation in the steel sector.
NEW DELHI: Prices of flat and long steel products have plunged by up to 14 pc in May following government's measures to control inflation in the steel sector, says a latest report of the Steel Ministry.
"The price of flat steel products came down by about 8 pc in May from the level of April. Similarly, the prices of long steel products reduced in the range of 10 to 12 pc," the Steel Ministry said in its monthly summary report for May.
It added that the decline in domestic steel prices was despite nearly 10 pc increase in international rates and depreciation of Indian Rupee against US dollar.
Among others, the government had on May 7 convened a meeting of major steel producers to discuss issues affecting the steel sector.
Endorsing government's concern that steel prices were exerting inflationary pressures on the economy, major steel producers including SAIL, Tata, JSW, Ispat and JSPL had reduced prices of flat products by Rs 4,000 per tonne and that of rebars and structural steel by Rs 2,000 per tonne.
The major steel producers had also assured the Prime Minister that they would hold their price line for the next three months till July. Following the price reduction by major producers, the secondary manufacturers had also cut the rates of flat products by Rs 4,000 a tonne.
Industry sources said steel prices have gone up by about 50 pc in the last one year, adding to spiralling inflation, which has touched a 13-year high of 11.42 pc.
As per government data, however, prices of pig iron, wire rods, plates, HR and CR coils, galvanised plates, ingot and billets declined 9 to 14 pc in May as compared to April.
"The price of flat steel products came down by about 8 pc in May from the level of April. Similarly, the prices of long steel products reduced in the range of 10 to 12 pc," the Steel Ministry said in its monthly summary report for May.
It added that the decline in domestic steel prices was despite nearly 10 pc increase in international rates and depreciation of Indian Rupee against US dollar.
Among others, the government had on May 7 convened a meeting of major steel producers to discuss issues affecting the steel sector.
Endorsing government's concern that steel prices were exerting inflationary pressures on the economy, major steel producers including SAIL, Tata, JSW, Ispat and JSPL had reduced prices of flat products by Rs 4,000 per tonne and that of rebars and structural steel by Rs 2,000 per tonne.
The major steel producers had also assured the Prime Minister that they would hold their price line for the next three months till July. Following the price reduction by major producers, the secondary manufacturers had also cut the rates of flat products by Rs 4,000 a tonne.
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Industry sources said steel prices have gone up by about 50 pc in the last one year, adding to spiralling inflation, which has touched a 13-year high of 11.42 pc.
As per government data, however, prices of pig iron, wire rods, plates, HR and CR coils, galvanised plates, ingot and billets declined 9 to 14 pc in May as compared to April.
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