Bhushan Stl may hike HR, CR prices by 15% in Q2

Nitin Johri, CFO, Bhushan Steel & Strips, said most producers are likely to increase prices of both hot- and cold-rolled steel by 10-15% this quarter. He does not see steel prices cooling off this year.

Excerpts from CNBC-TV18's exclusive interview with Nitin Johri:

Q: What is the call? How much are you looking to raise prices by?

A: Most steel producers are likely to increase prices because cost of production has gone up. There is a big difference between prices in the international and domestic market.

Q: By how much will you be looking at raising prices?

A: It all depends on hot rolled coil manufacturers. If they increase prices, we will be forced to increase prices because we cannot bear this cost rise.

Q: What percentage rise do you expect in hot- and cold-rolled coils?

A: It will be in the range of around 10-15%.

Q: Looking at the last quarter of 2008, what kind of street signs are you picking up? Do you think there could be a cool off of in steel prices by the time we reach 2008 end?

A: I don’t see any reason for prices to cool off this year. Basic raw materials like iron ore, coal, cooking coal, and even petrol prices are putting a lot of pressure on manufacturers.

Q: Where do you see margins headed in light of those hikes? Are you going to hike prices in August, Q3, and Q4?

A: This quarter, there will be an increase in the range of 10-15%. Thereafter, we have to re-look the whole industry scenario. There is no likelihood of prices coming off in late 2008.