Steel companies like JSW Steel, Essar Steel, Mukand Steel are contemplating to increase prices by around INR 1,000 to INR 1,500 per tonne from January to mitigate the impact of increase in input costs on its margins.

January to March usually the peak period for steel companies is not showing signs of strong revival in the domestic market. However, globally demand for steel is improving in countries like China, US and Europe and prices globally are also showing an upward trend. Demand in October to December quarter did not increase as per expectations as a result the steel companies could marginally increase prices in the quarter. Experts said it is essential for steel companies to increase prices in January to March to retain profits.

A senior official from JSW Steel said that “We are planning to increase prices of flat products by around INR 1,000 to 1,500 per tonne in the month of January. Prices in December remained flat. While iron ore and freight costs have gone up it is important for us to take some price increase to sustain margins.”

The official said that demand for steel continues to be low in the domestic market but since globally the prices have increased because of which landed cost of steel has gone up it would help the Indian steel companies to increase prices.

A senior official from Essar Steel also said that the company is planning to increase prices by around INR 1,000 to INR 1,500 per tonne.