ISPAT increases steel prices by up to Rs 3,000

KOLKATA: ISPAT Industries on Monday said it has increased prices of its products by up to Rs 3,000 a tonne. The company also plans to raise around Rs 700 crore in the near future to part-finance the expansion projects.

“On an average, the increase is Rs 2,500 per tonne with effect from April 1. Depending on the steel segments, the hike is between Rs 2,000 and Rs 3,000 per tonne,” Ispat executive director Anil Sureka said.

He also said the financial numbers for the past quarter of the year will be better as sales were higher by 5% in the past quarter of the just-concluded year compared to Q3 of 2009-10. Ispat had registered sales of Rs 2,104.7 crore and net profit of Rs 18.9 crore in the Q3 of 2009-10 fiscal.

Mr Sureka said the company would review the steel price next month as the industry was facing a cost pressure of about Rs 5,000 per tonne taking into account increase in the prices of iron-ore and coking coal. Ispat is also planning to raise around Rs 700 crore in the near future to part-finance some of the expansion projects that will lead to cost reduction.

He said the board had passed an enabling resolution to raise up to Rs 500 crore by issuing equity-linked securities through private placement to qualified investors, including institutional investors.

Uttam Galva too hikes prices

Uttam Galva Steels on Monday said it has increased the prices of its products in the spot market and monthly contract by Rs 6,000 per tonne.

The increase in prices has come into effect from April 1, the company said. It is also targeting an increase in quarterly contract prices by Rs 9,000 per tonne with effect from April 1, it added. In the domestic market, the company is a major supplier to automobile, white goods, general engineering and construction industries. The company currently exports its products to 142 countries.