New Delhi: Close on the heels of Steel Authority of India Ltd (SAIL) slashing product prices, steel majors Tata Steel, Essar Steel and Ispat Industries on Friday announced a cut in their prices by around seven to eight per cent on account of rising inventories.

According to company sources, Tata Steel slashed prices by as much as Rs3,000 for its branded flat products. Essar Steel has revised prices for its products in the domestic markets by approximately five to eight per cent with immediate effect. Ispat Industries has also announced lowering of its steel prices by around seven per cent, largely due to rising inventories, company sources said.

SAIL had, on Thursday, announced a cut in prices by Rs500 to Rs2,000 per tonne. The company had termed the price cut a "temporary correction" owing to market fluctuations, triggered partially by China's low intake of steel.

The domestic steel production, which was an estimated 35mt in 2003-04, is estimated to grow to 38mt by 2006-07 and further to 52mt by 2011-12.