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Steel Prices May Increase By Rs.1000/Tonne

3/21/2012 8:19 AM ET

Leading firms hinted that the steel prices might raise by around Rs.1,000 per tonne by early next month due to recent increase in excise duty and hike in iron ore freight rates, reports said.

Essar Steel (India) CEO and MD Dilip Oommen reportedly said that the cost push due to increased duty and iron ore freight rate was Rs.1,000 per tonne and this would get reflected in prices by the end of this month.

Other leading manufacturers, Rashtriya Ispat Nigam Ltd. (RINL), JSW Steel and Jindal Steel and Power (JSPL) also echoed similar views.

In the Budget for 2012-13 announced last Friday, the Finance Minister Pranab Mukherjee has increased excise duty rate from 10 percent to 12 percent.

Besides, the Railways had also increased freight rate on domestic iron ore transportation by 20 percent on March 6 to meet its revenue earnings targets, which was hit by the ban on export of the vital steel making raw material in the states like Karnataka and Odisha.

Steel prices, which have been on an uptrend in the last few months, are presently hovering in the range of Rs 36,000-Rs.37,000 per tonne.

by RTT Staff Writer

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