Indian Steel Alliance to stop HRC export
According to recent news from the industry, Indian Steel Alliance (ISA), an association covering leading steel producers such as
SAIL,
Tata Steel, Essar Steel,
Jindal Vijaynagar and Ispat Industries, announced that there will be no hot rolled coil export at the cost of local market. Thus, all domestic demand of the subject product will be met.
Meanwhile, flat products in needed amounts are supplied to Small Scale Industries (SSIs) as the prosperity of SSI has an important role in the sector.
ISA requires SSI to note that price hikes in steel products were a consequence of rising input costs, average of which jumped up by over 300%. During December 2002-February 2004 period, coke price in the international market increased by over 280% up to $465/tonne, whereas price of
iron ore grew up to $120/tonne from $28/tonne.
Freight rates, another input cost, rose as well by over 400%.
On the other hand the ISA lowered steel prices by Rupees 1'500-2'000/tonne (around $34-46$/tonne) and besides, will maintain these prices until June 2004 and revise every three months.
It is stated that absorption of almost total hike in input costs together with an 8% (almost Rupees 2'000/tonne) reduction in excise duty helped the decrease in steel prices.