Steel companies raise prices by Rs 4000/- pmt wef 1st Dec’17

December will bring more shivers for the steel users. Steel producers have raised the price for all grades by Rs 4000/- pmt effective from 1st December 2017. As per the market reports, the increase of Rs 4000/- has been settled by Tata Motors with major steel producers in the segment such as JSW, Neco Jayaswal, Usha Martin etc It may be recalled that earlier a price increase of Rs 1450/- pmt was settled between OEMs and steel producers wef from 1st July 2017. At that time, the steel makers had expressed dissatisfaction over the quantum of increase as the increase of Rs 1450/- was not sufficient to cover the rise in their production cost owing to sharp rise in raw material and electrode prices. They had instantly demanded another Rs 5000 – 6000 pmt increase as they claimed that the total increase in their input cost was to the tune of Rs 7000/- pmt. The current increase of Rs 4000/- will give the steel plants a breather and shall help them to reduce their losses. With imports of steel hit by anti dumping duties (slapped by Indian government) and many steel majors facing NCLT stick, there is an overall shortage of steel in the country. Forging industry has already aired their problems of low production due to shortage of steel. With steel demand getting better than supply, the increase was expected sooner than later. The increase shall be applicable across all grades of all the long products including wire rod. As far as the flat products are concerned, a similar rise has already taken place since July 2017. The prices should now keep stable for the remaining financial year, if the industry experts are to be believed.