Tata Steel has increased steel prices by up to Rs750 per tonne beginning 1 June, the second this financial year (2009-10), amidst a firming of domestic demand for the commodity.
The hike has already been factored into in the monthly contract prices of steel in select regions beginning 1 June, a Tata Steel spokesperson said, adding, the hike followed an improvement in domestic demand, especially from sectors like construction and automobiles.
"We have increased the prices of our hot-rolled and cold- rolled steel items in the range of Rs500-750 a tonne on our monthly contracts in select regions," the spokesperson said.
The company had raised the prices of its long products, mainly used in the construction industry, by Rs300-500 a tonne.
While state-run Steel Authority of India has already raised steel prices by up to Rs1,000 per tonne, private steel makers such as JSW Steel and JSPL are also reported to be considering price hikes on account of the increased offtakes and slight improvement in the market.
Tata Steel had reported a significant increase in its sales volume at 4.69 lakh tonnes in May this year. Production of hot metal, crude steel and saleable steel also recorded significant increase in over the corresponding month.
Hot metal production was up 19 per cent at 5.28 lakh tonnes against 4.43 lakh tonnes in April; crude steel production rose 17 per cent to 4.86 lakh tonnes in May from 4.16 lakh tonnes in April; saleable steel production stood at 5.01 lakh tonnes in May, up 23 per cent from 4.08 lakh tonnes in April.
Sales rose 18 per cent to 4.69 lakh tonnes in May from 3.97 lakh tonnes in April.