Amid reports of concerns being expressed by the Ministry of Steel that sudden hike in steel prices in the public and private sectors could lead to spurt in inflationary pressures, State-run steel maker Steel Authority of India Limited (SAIL) on Thursday hinted that it may cut prices of some of its products in the near future.
The indication of a price cut comes close on the heels of the company having last week raised prices of flat and long products by Rs. 1,500. “Since long steel product prices have gone up to a certain level, there may be some correction in the category in near future,” SAIL Chairman and Managing Director S. K. Roongta said in response to queries as to when the company would revise prices of its products.
Long steel products are mainly consumed by construction and infrastructure sectors.
The Steel Ministry had already expressed concern over increase in steel prices by the domestic firms, including SAIL, JSW and Tata Steel, which own captive reserves of iron ore and coking coal. Many steel firms have cited increase in input costs besides the demand surge for price increase. Iron ore prices, which had fallen below $50 a tonne last year, are hovering at $100 a tonne at present.
