SAIL not to hike prices despite increase in costs

SAIL not to hike prices despite increase in costs

According to recent news in the market, Indian steel producer Steel Authority of India Ltd (SAIL) is not expected to increase its prices despite the increase in coal price announced by Coal India Ltd. As SAIL prices are not cost driven but market driven, despite the 16.7% increase in coal prices, the company will not increase product prices in short term. SAIL purchases 4 million tons of coking coal each year from Coal India Ltd under the scope of the agreement signed between the two. It is reported that increase in coal prices may only have impact on SAIL provided that an amendement in the subject agreement is made.