Government trying to chill steel prices some more

Steel prices are expected to come down by Rs 3000-5000 per tonne soon, CNBC-TV18 reported on June 6 quoting sources, as the government tries to bring about a further fall in raw material prices to curb inflation.

NMDC iron ore prices have dropped 25 percent and coking coal rates have declined in the last 10 days, the report said.

Prices of domestic benchmark hot-rolled coil steel at the traders’ end have already slid about eight percent since May 18, according to market intelligence agency SteelMint. The Economic Times said top steelmakers have quoted prices for June that are lower by Rs 4,500–5,500 a tonne.

Moneycontrol couldn’t independently verify the report.

In May, the government had waived customs duty on the import of some raw materials including coking coal and ferronickel, which helped reduce prices. Further, the duty on exports of iron ore was hiked up to 50 percent and for a few steel intermediaries to 15 percent, in a move aimed at increasing domestic availability.