SAIL raises flat product prices by Rs. 600 per tonne

The public sector major Steel Authority of India raised the prices of its flat products by Rs. 600 per tonne, doubly compensating for the lapse in railways’ Rs. 300 per tonne subsidy for steel transport during monsoon season. The PSU kept its longs prices unchanged. 

The railways’ usually offer a subsidy for the weak monsoon season to encourage transportation of commodities as the demand is subdued. However, the subsidy lapsed on September 30. 

The flats are used by automobile manufacturers and consumer durable industries. It traded at around Rs. 39,000 per tonne at present while the longs are traded for Rs. 34,500 to Rs. 35,000 per tonne. The higher demand for vehicles and consumer durables due to festivals is also likely to be a reason behind the increased prices of flats. The private steel players had raised the prices by 2 to 6  per cent  in September. 

The domestic demand for steel grew by 4  per cent  on a yearly basis in the first half of the financial year, largely attributed to the 16  per cent  hike in the flat product sales during the April-August period. 

On Monday, Steel Authority of India hit an intraday high of Rs .58.95 per share, higher by over 2  per cent  and an intraday low of Rs. 57.75 per share on BSE. The stock closed at Rs .58.25 per share, higher by 0.87  per cent  on BSE.