Steel prices are expected to rise by about Rs 500-1000/MT by
early next month due to recent increase in excise duty and hike in iron ore
freight rates.
Confirming the move to effect a price hike, a senior
official of the JSW Steel said, “It is on the drawing board, a decision will be
taken by next week and the hike will be effective early next month.”
In the Budget for 2012- 13, announced last Friday, the
Finance Minister, Mr Pranab Mukherjee has increased excise duty rate from 10%
to 12 %.
Besides, the Railways had also increased freight rate on
domestic iron ore transportation by 20% on March 6 to meet its revenue earnings
targets, which was hit by the ban on export of the vital steel making raw
material in the states like Karnataka and Odisha.
Essar Steel (India) CEO & MD, Mr Dilip Oomen also said, “The
cost push due to increased duty and iron ore freight rates is Rs 1,000 per
tonne. So, it (price increase) will not be less than that. This will get
reflected (in prices) by the end of this month.”
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