Following on the heels of other steel majors, Tata Steel today announced a cut in prices of some of its steel products, mainly on account of weakening global trend.
"We have cut prices of our flat steel products. It is in the same range as other steel makers have done," Tata Steel managing director H M Nerurkar told reporters on the sidelines of CII steel summit in New Delhi.
A day after the state-owned Steel Authority of India Ltd reduced flat steel prices on Monday, private steel makers JSW Steel, Essar Steel and Ispat Industries followed suit. Ispat has cut prices by Rs1,000 a tonne, while Essar Steel has reduced by Rs700-1,000 a tonne.
Earlier in September, the steel companies had revised the prices of their products upward by up to Rs1,500 a tonne. With the increase in production at Chinese steel mills and with oversupply in the international market, domestic steel makers did not change the price structure in October.
Seshagiri Rao, joint managing director and chief financial officer of JSW Steel, said the reduction was on account of global weakening of prices and appreciation of the rupee, as well as a dip in Chinese domestic prices.
JSW Steel has dropped prices 3-5 per cent across flat products, used in the consumer durables and automobile majors. Rising imports is said to be another reason behind the price reduction.