Indian Steel companies are expected to cut prices in the
range of Rs 1,000- Rs 1,500/MT in the near future.
The net sales realization of steel companies is anywhere between
Rs 35,000 and Rs 35,500/MT for hot rolled coils. For cold rolled coils, the realization
is between Rs 40,000 to Rs 41,000/MT.
Experts see this cut as a tactic to improve off take of
inventory that has been piling up.
Steel companies also want to achieve price parity with imported
steel after implementing the cut, said the head of research at an Indian
brokerage.
However, there is fear that delay in project clearances by
the centre could hit demand even after the cut. Hence steel manufacturers are utilizing
only one third to two thirds of their installed capacity.
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