Steel Cos to raise benchmark prices

KOLKATA: Domestic steel companies have decided to raise benchmark prices of flat steel products like, hot rolled (HRC)and cold rolled coils, by an average of around Rs 1500 per tonne, in what is perhaps a clear indicator of a perk up in overall steel demand from consumer sectors like durables and automobiles.

On Wednesday, two of the country's largest steel companies, state-owned SAIL and private sector major, Tata Steel, confirmed they had both hiked prices. The firming up of domestic steel prices is a reflection of the international market where restocking by European steel companies has led to a firming up of benchmark HRC prices to $600 per tonne.

The price increases will come into effect from September 1 for the entire month. However, neither of the two companies have raised long product prices.

"We have raised prices on flats by 3-4% on an average. The price hike will be applicable across different grades of flat steel products produced by the company," a Tata Steel official said.

"SAIL has increased prices of hot rolled coils by Rs 1,500 per tonne," a company spokesperson said.
With this, HR coil prices are expected to hover around Rs 32,000/tonne in September, a shade higher than the international HR prices which are ruling at $600/tonne (approx Rs 30,000). International steel prices are rising on account of restocking by the European steel users.