Retail steel prices increase by about 25 pc in a month
High input costs have contributed to the rise of retail steel prices by about 25 per cent in the domestic market in a month.
By PTI |
NEW DELHI: Government may have managed to hold steel prices for long-term contract but retail prices of flat and long steel products have surged about 25 per cent in the domestic market in over a month.
According to latest data compiled by Joint Plant Committee (JPC), authorised by the Ministry of Steel, TMT bars (10mm) were selling at Rs 38,200 per tonne in Delhi's retail market as on May 16, while the rates stood at Rs 47,800 per tonne on June 16, registering a Rs 9,600 increase in prices.
The data also shows up to 20 per cent increase in retail prices of hot-rolled (HR) and cold-rolled (CR) coils from mid May-June.
In Delhi, the rates of HR Coils (2mm) increased from Rs 43,000 to Rs 51,000 per tonne while that of CR coils (0.63mm) from Rs 45,000 to Rs 51,000 per tonne during the said period.
Senior officials in Steel Ministry, however, said the major steel producers continue holding their price line, which they had promised to the Prime Minister.
"In case of HR and CR coils, most of the producers have term contracts with companies and so their rates are constant at previous levels. Domestic prices are still competitive as compared to international rates," a senior official in the Steel Ministry said.
He added that the price rise in HR and CR coils, as reflected in the JPC report, is of those sold in the retail market, which constitutes only 1 to 2 per cent of the total produce of the major steel producers.
Meanwhile, the price rise in steel products was witnessed in all the four metros with Delhi registering maximum hike.
Karvy Comtrade's analyst Vishal Maniyar attributed the price rise to higher input costs and to reports of the Steel Minister Ram Vilas Paswan indicating that the government will not interfere every time to curb steel prices.
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