Tuesday 3 September 2013

Essar Steel ups steel prices by Rs 1,200-1,500 a tonne on sharp rupee depreciation

In a bid to pass the increased cost of raw materials to buyers, on account of sharp depreciation of rupee, Essar Steel has upped prices of steel by Rs 1,200-1,500 a tonne, compared with the hike of Rs 1,000-1,200 a tonne in August. However, with this development, other steel companies too are expected to raise their steel prices, since these companies have to shell out more for importing coking coal, crucial raw material for making steel. The hike could also in the backdrop of higher prices of imported steel which has also been caused by the weaker rupee.

Besides, JSW Steel, too earlier reported that it was planning to raise the prices of steel by 5%, beginning September 1, 2013. With its coal import bill going up by nearly Rs 1,500 crore, the company has no choice but to raise prices anywhere between 4% and 6%.

Essar Steel, the group’s flagship company of Essar Group, which is a global corporation with investments in the sectors of steel, energy (oil & gas and power), infrastructure (ports, projects & concessions) and services (shipping, telecom, realty and outsourcing and technology solutions).

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