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JSW, Essar raise prices of flat products by up to 1,000/tonne

03 Jun 2011 Evaluate

Two leading steel makers JSW and Essar Steel have hiked rates for flat products by up to Rs. 1,000 per tonne in the wake of rising raw material costs. However, state-run SAIL has kept prices at last month’s levels, while Tata Steel is yet to decide on any move. The prices for flat products have gone up by Rs. 600 to Rs. 1,000 per tonne since the beginning of the month, the first such move in the current fiscal. Following the increase, the price of HR-coil — a flat product used in the automobile and white goods sectors — is between Rs. 36,000 and Rs. 36,500 per tonne, which could lead to margin pressure for user sectors. 

On the back of rising input costs and strengthening of international prices over the last couple of weeks, there is a case for upward revision of steel prices. The prices of coking coal and iron ore, the two most important raw materials for steelmaking, have shot up to $330 a tonne and $180 per tonne, respectively, in recent times. While the rise in coking coal prices is attributed to the floods in Australia, which contributes around 80% of India's imports, the spurt in iron ore prices is mainly due to increased global demand. SAIL, the country's largest steel-maker, however, refrained from effecting any hike as it believes that the cost of raw material will now stabilize, as it has already reached the peaks. 

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JSW Steel Share Price

1239.90 24.35 (2.00%)
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Company Name CMP
Tata Steel 212.05
JSW Steel 1239.90
SAIL 173.50
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