Thursday, December 17, 2009

Bhushan Steel To Raise Prices In Jan

Domestic steel firm Bhushan Steel on Wednesday said it will increase prices of its products by up to Rs 1,500 a tonne next month to cash in on the uptick in demand.

"There is going to be a price increase of our flat and long steel products from January onwards may be in the range of Rs 1,000-1,500 a tonne. ...From January, the demand will definitely pick up," Bhushan Steel Managing Director Neeraj Singal told reporters here.

Flat steel products are primarily used by the white goods and auto industry while the long products are used in the construction industry.

The firm had lowered prices of its products a few months back along with its peers in the industry amid threats of cheap imports. The price range of the cut could not be immediately ascertained.

"The prices had gone to unexpectedly low levels in the last two-three months so it has to come to a realistic level again. From January the demand will definitely pick up," Singal said.

The country's largest steel producer SAIL is also planning to increase steel prices in January. The move is expected to be followed by other steel producers as well.

Steel prices have globally recovered by about $50 a tonne to about $450 per tonne after falling by around $150-200 per tonne in the last two months due to fear of over capacity in Chinese steel mills and import threat.

Source: Economic Times

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