The steel authority of India ltd(SAIL) cut its product prices on Tuesday by rs.1000-1,500 per tone. This step was taken keeping in line with the global price movement as global steel prices have declined nearly 15 per cent over the last month owing to poor demand in the wake of European financial crisis. Mr. Atul Chaturvedi, steel secretary had earlier said on Monday that the steel prices had been falling and would continue to drop in the next month too.
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The company spokesperson said ““We have brought down prices of various products in the range of Rs 1,000-1,500 a tone to align with the global trend”.
An official from JSW steel said it was also likely to announce a price cut later on Tuesday.
The company’s Joint Managing Director M.V.S Seshagiri Rao said.”Spot prices for long products are volatile and we change them several times a month. For flat products, there is likely to be a reduction in prices this month because of a decline in international prices.” Mr. Rao further added, “However, there are no signs of tapering in the domestic demand,”
Steel prices are likely to cool further in the coming months as demand from realty and construction sector usually slows down during monsoon.
Shares of SAIL closed at Rs 198.60 on the NSI, down 3.8% from previous close. JSW Steel closed at Rs 1,054, down 4.9%.