MS FLAT
40 X 5-100 X 25  37600/MT

MS ROUND
16-25 MM        37500/MT

MS SQUARE      
16-25 MM        37500/MT

INGOT           33500/MT

for more details on Product Prices and related matters kindly contact Mr. Gaurav Jain at info@ashoksteel.com or on Mob.no.09815459000

Steel Prices as on 26-4-08

Ghaziabad             29890      
Kolkata               25040
Mandi Gobindgarh      29890
Mumbai                29350    
Raipur                27675

Steel ingot prices were on a downward trend since the last week of March and hit the nadir on April 23. From April 24, prices in the spot market started moving up across the country.

During the last three days, ingot prices moved up in the range of Rs 250 (lowest increase in Kolkata) and Rs 1,890 (highest increase in Gaziabad).

A large number of TMT makers, both branded an unbranded, are planning to increase their prices in May to pass on the increased cost. However, none of them had reduced prices when ingot prices went down by around Rs 4,000-5,000 per tonne over a period of one month.
Regional brand price

As of now, prices of TMTs manufactured by strong regional brands like Kamdhenu, Rathi, Goel, Barnala, Ambala, and Jaibharat are lower by around Rs 3,000-5,000 per tonne compared to Tata Steel's products. Unbranded TMTs are sold at rates lower by around Rs 8,000 per tonne, compared to Tata Steel prices.

Increase in prices of products manufactured by the medium-sized companies would directly hit the common man because it is these items that are used for building houses and other commercial and residential properties because the two largest manufacturers -- RINL and Tata Steel -- sell most of their produce to the big infrastructure projects.

According to the manufacturers, the present price rise is a correction of the aberrations that had set in the market following talks of excise cut.
Fear of excise

According to Mr Satish Agarwal, the Chairman and Managing Director of Kamdhenu Ispat, "the fear of excise cut was pulling down prices in the local markets abnormally to ensure that when the cut comes, there is no major impact overnight. But with rising prices, the re-rolling units will normally pass it on to the customers."

Explaining the economies of the re-rolling units, Mr Agarwal said that for these products, the rolling cost, which is the cost of conversion of ingots or billets into long products, is around 13 to 14 per cent of the cost. Their profit margins are very thin. "So there is a strong possibility of prices going up," he said.

Sources in the National Commodity & Derivatives Exchange said that spot market prices have increased in the range of 1 per cent to 6.75 per cent in various centers since Wednesday.

"However, prices are still substantially lower than their March 24 peaks," officials pointed out.

MS FLAT
40 X 5-100 X 25  34100/MT

MS ROUND
16-25 MM        34000/MT

MS SQUARE      
16-25 MM        34000/MT

INGOT           38000/MT

for more details on Product Prices and related matters kindly contact Mr. Gaurav Jain at info@ashoksteel.com or on Mob.no.09815459000

MS FLAT
40 X 5-100 X 25  40600/MT

MS ROUND
16-25 MM        40500/MT

MS SQUARE      
16-25 MM        40500/MT

INGOT           36000/MT

for more details on Product Prices and related matters kindly contact Mr. Gaurav Jain at info@ashoksteel.com or on Mob.no.09815459000

SIZE             Rate ex-factory/Mt
50 X 50 X 5      41000
35 x 35 x 5      41200
65 x 65 x 6      41100
50 x 50 x 4      41400
45 x 45 x 5      41100

MS FLAT
40 X 5-100 X 25  41000/MT

MS ROUND
16-25 MM        41000/MT

MS SQUARE      
16-25 MM        41000/MT

INGOT           37000/MT

for more details on Product Prices and related matters kindly contact Mr. Gaurav Jain at info@ashoksteel.com or on Mob.no.09815459000

SIZE             Rate ex-factory/Mt
50 X 50 X 5      40500
35 x 35 x 5      40700
65 x 65 x 6      40600
50 x 50 x 4      40900
45 x 45 x 5      40600

MS FLAT
40 X 5-100 X 25  40600/MT

MS ROUND
16-25 MM        40500/MT

MS SQUARE      
16-25 MM        40500/MT

INGOT           36000/MT

for more details on Product Prices and related matters kindly contact Mr. Gaurav Jain at info@ashoksteel.com or on Mob.no.09815459000

NEW DELHI: Having introduced policy measures to douse inflationary pressures on the food front, the government is now zeroing down on crucial input sectors like the steel industry to check the rising price index. Steel producers have been directed to reduce prices by 10% to 20%, failing which the government would interevene with fiscal measures that could soften prices.

Measures like the introduction of an export duty on steel exports, inport duty cuts, introduction of ad valorem duty structure for ore exports and reduction in excise duty on steel from 14% to 8% are on table. These steps would encourage imports while disincentivising exports, thus addressing some of the supply side constraints. Steel prices have spiked by almost 25% to 30% between January to March 2008 and there are enough signals to suggest a further hardening of prices in the coming days.

Steel producers appear set to announce further price hikes which would put pressure on metal consuming industries translating into additional inflationary triggers in the economy. Essar Steel director, J Mehra said, "It's still a wait and watch situation for us. We have assured the government that we'll exercise self-restraint on export of steel products but it's the duty of the government to keep a check on supply side issues. We have no choice but to increase the steel prices if raw material prices go up further.

While steel has a weightage of just 0.3% in inflation index, its usage in industrial and household applications enhances its inflationary impact. Steel producers say a price hike is inevitable given the sharp rise in raw material cost as globally iron ore prices are shooting up.

The government, however, believes otherwise. "There is no doubt that steel prices are high. Government expects that steel makers reduce this rise by 10%-20% to minimise its impact on inflation. While steel makers are expected to voluntarily address the problem, a decision would have to be taken soon as government is not willing to wait even till the end of the month," commerce secretary GK Pillai said.

The commerce and steel secretaries held a meeting with iron ore mining companies on Tuesday to work out a solution for controlling steel prices. The companies have agreed to discuss the matter with steel makers and come back to the government with a definite plan to curb price rise.

The possibilities of a further spike in steel prices stems from the fact that National Mineral Development Corporation (NMDC), India's nodal agency for iron ore supply, is expected to raise prices by as much 65% in line with international iron ore prices. This could have a significant cost push for steel producers at a time when steel prices have already risen by almost 30% in the one quarter due to price hike in iron ore.

Government officials, however, say that iron ore prices are only one of the factors leading to the escalation. A mere reduction in prices by iron ore producers would not solve the problem as iron ore is just one of the ingredients in steel production.

Steel makers, who are under pressure, are expected to tread cautiously over the next few days. "Steel makers don't want to jump the gun. Any increase in the price of basic raw materials such as iron ore and coal in turn increase the steel prices.  

SIZE             Rate ex-factory/Mt
50 X 50 X 5      44300
35 x 35 x 5      44500
65 x 65 x 6      44400
50 x 50 x 4      44700
45 x 45 x 5      44400

MS FLAT
40 X 5  UPTO 100 X 25    44400/MT

MS ROUND
16-25 MM        44300/MT

MS SQUARE      
16-25 MM        44300/MT

INGOT           40000/MT

for more details on Product Prices and related matters kindly contact Mr. Gaurav Jain at info@ashoksteel.com or on Mob.no.09815459000

SIZE             Rate ex-factory/Mt
50 X 50 X 5      42000
35 x 35 x 5      42200
65 x 65 x 6      42100
50 x 50 x 4      42400
45 x 45 x 5      42100

MS FLAT
40 X 5  UPTO 100 X 25    41700/MT

MS ROUND
16-25 MM        42000

MS SQUARE      
16-25 MM        42000

for more details on Product Prices and related matters kindly contact Mr. Gaurav Jain at info@ashoksteel.com or on Mob.no.09815459000