Steel producers agree to reduce prices

Steel producers today announced a price cut between Rs 500-1,000 per tonne in response to the repeated requests by the union steel ministry.

Industry leaders announced the price cut, which will be with immediate effect, following their meeting with Steel Minister Ram Vilas Paswan here today.

"The minister expressed concern over the impact of rising steel prices on the common man. We explained the pressure from rising cost of inputs like iron ore, coal, gas, crude oil, rail and sea freight. However, a voluntary decision has been taken to roll back prices and moderate the impact on the public," said Naveen Jindal, executive vice chairman and managing director, Jindal Steel and Power, on behalf of the steel producers.

The price of TMT bars and rounds have been cut by Rs 1,000 per tonne while hot rolled coils have become cheaper by Rs 500 per tonne. Most steel producers had increased price by an average Rs 2,500 per tonne with effect from February. Earlier, in January, price was hiked by an average Rs 500 per tonne.

Steel producers also put forward their demand for lowering of excise duty and railway freight. "All producers want excise duty to come down to 8% from the current 16%," said Jindal.

"We are concerned with the impact of rising input cost on the profit of steel producers. Our ministry will write to the finance ministry to lower the excise duty from the current 16% and to the ministry of railways to reduce freight," said Paswan.

"The price hike has impacted users and downstream industries, and we support the minister’s efforts to moderate the impact," said S K Roongta, chairman, Steel Authority of India (SAIL).