Three domestic steel companies - Steel Authority of India (SAIL), Essar Steel and Ispat Industries- lowered prices by Rs 1,500- 2,500 on an average. The prices were lowered on account of a correction in global prices due to liquidation of inventory across countries.
SAIL reduced prices by 4- 8% while Essar and Ispat lowered them by 4- 5%. It is expected that the other two domestic steel producers - Tata Steel and Jindal Vijayanagar - would also cut prices in the next couple of days. But they are hopeful that within a month or two, global steel prices would stabilize and market would allow prices to rise.
In India, the demand for steel is on a rise due to construction boom, infrastructure projects and growing auto-mobile sector. Domestic steel production, which was estimated 35 million in 2003- 04, is estimated to grow to 38mt by 2006- 07.