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JSW Steel has announced a price cut of Rs 5,500 a tonne in HR coils. This reduction along with an 8-12 per cent reduction in October totals to an overall reduction of 25-30 per cent compared to peak prices in the domestic market, the company said.

 

International prices went up to $1200-1250 a tonne between February and July and had since corrected almost 50 per cent. The current reduction in domestic prices is to counter increasing imports, it said adding that the price reduction in domestic market was almost close to the marginal cost of production for several steel producers as coal contracts were finalised at higher prices for the entire year.

 

Essar Steel is reported to have reduced prices by Rs 4,000-5,500 a tonne. State-run SAIL has also dropped prices by Rs 4,000-6,000 a tonne.

 

Sources said other steelmakers such as Tata Steel and Ispat Industries were expected to follow suit. –Business Line