STEEL PRICES

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After decontrol of steel items in 1991-92 as part of the process of economic liberalization, Government does not fix prices for steel products. Prices of various steel items are determined by respective steel producers based on the prevailing market conditions and other related factors.

The cost of raw materials, power, freight and fuel are determined by the pricing policies of the concerned Departments/agencies. These pricing policies are themselves being influenced, in an increasing measures by the market forces. The wage structure in steel industry is determined by the wage review mechanism of the public sector/private sector steel units. Besides these factors, cost of production, and consequently the pricing of steel products, also depend on factors such as scale of production, technology adopted, locational advantages and cost of capital. Thus prices of various steel items are decided, in the ultimate analysis by the interplay of various market forces.