Steel industry agrees to hold price line
After the government cracked down on steelmakers asking them to rein in prices, the industry agreed to cut prices by up to 10 pc and also discourage exports, reports HT Correspondent.business Updated: Jul 03, 2008 23:42 IST
With reports of steel prices rising, government on Thursday cracked down on steelmakers asking them to rein in prices of pipes, tubes and flat products or face a ban in export of these products. The industry in turn agreed to cut prices by up to 10 per cent and also discourage exports. Steelmakers also assured the government that they would do their best to check hoarding.
Prices of pipes, tubes and some other flat products had turned dearer in June which prompted steel ministry to convene a meeting with primary and secondary steel manufacturers in the country on Thursday.
After the 3 hour long meeting, the manufacturers said they would fix a price ceiling of Rs 48,000 per tonne for pipes and tubes with immediate effect and issue directives to all their dealers on the maximum retail price (MRP) of steel products.
Primary producers like SAIL, RINL, Tata Steel, JSW Steel, JSPL and Ispat also announced that they would discourage direct and indirect export of HR coils and subsequently CR coils and galvanised products and to increase availability by up to 12 per cent (about 2 million tons) in the domestic market.
“We have decided to reduce direct and indirect export of HR coils to enhance its availability in the domestic market, besides reviewing the MRP arrangements with dealers to benefit end consumers,” said Sajjan Jindal, vice chairman and managing director, JSW Steel.