Secondary steelmakers cut prices by up to Rs 4,000 cr | business | Hindustan Times
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Secondary steelmakers cut prices by up to Rs 4,000 cr

business Updated: May 14, 2008 22:48 IST
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India’s secondary steel makers on Wednesday announced that they would cut prices by up to Rs 4,000 per tonne on all flat products as the government continued its attempts to tame rising prices.

"Secondary steel producers have agreed to cut prices of flat products by Rs 4,000 per tonne and maintain the new price line for the next three months," Steel Secretary RS Pandey said after a meeting with industry representatives.

Pandey said the government was also examining the industry’s request to reduce the export duty on steel.

Secondary products, which have combined output of over 7 million tonnes a year, include products such as hot rolled (HR) and cold rolled (CR) sheets, coils, slit coils as also flats and pipes used in construction and automobiles.

The decision came a week after primary steel product producers announced a reduction in prices by up to Rs 4,000 per tonne.

The secondary producers include players such as Bhushan Steel, Jindal Saw and National Steel. An industry executive said companies had offered to reduce prices for three months and the reduced prices would be applicable only for new orders and not for existing contracts.

An inflation-weary government has announced a slew of measures, including an export tax on some steel products and abolition of the basic customs duty on three critical inputs for steel manufacture: metallurgical coke, ferro alloys, and zinc.

The government has announced a 15 per cent export duty on specified primary forms and semi-finished products, and hot rolled coils and sheet, 10 per cent export duty on specified rolled products, including cold rolled coils and sheets and pipes and tubes, and 5 per cent export duty on galvanised steel in coil and sheet form.

In addition, the government has also abolished the existing 14 per cent countervailing duty on thermo-mechanically treated steel bars and structurals, commonly used in construction.