Online BusinessSAIL cuts prices by up to Rs 2,000 a tonne
The country"s largest steel maker, Steel Authority of India (SAIL), today said it has cut prices of its long products — used primarily in construction — by Rs 1,500-2,000 per tonne and may further lower the rates if the situation so warrants.
"We have brought down prices by Rs 1,500-2,000 a tonne on July 1 on our long products. Monsoon is setting in, so construction activities will come down. If the market situation demands, we will bring the rates down further," SAIL Chairman S K Roongta said on the sidelines of the Assocham steel summit.
The country"s largest private steel maker by capacity, JSW Steel, had yesterday ruled out increase in prices of its products mainly on account of lower input cost pressure.
Steel companies have negotiated coking coal contracts at lower rates and expect to sign iron ore deals at a huge discount in the current fiscal over the last one.
Lower steel prices have hit hard the margins of domestic companies. Steel prices plummeted from the peak of $1,150-1,200 a tonne to $500-550 a tonne in the past three quarters due to the slump in demand in the wake of the global economic slowdown.