INCREASE IN PRICE OF STEEL

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RAJYA SABHA

The price of Steel has been on the increase for the last eighteen months in the country.

Domestic price movement from July 2002 to October, 2003 in respect of certain representative categories of long and flat steel products as observed in the Mumbai market is given below:

Rs./Tonne

ITEM MONTHS	WIRE RODS 6MM	ROUNDS 12MM	JOISTS 125x70MM	HR COILS 2.00MM (T.M.Q.)	CR COILS 0.63MM	GP SHEETS 0.63MM
Jul’02	17750	15900	16000	20500	23500	27000
Aug’02	17750	15900	15800	20500	23500	27000
Sept’02	17750	15600	16000	20500	23500	27000
Oct’02	17750	15600	15500	21500	23000	28500
Nov’2	17350	15000	16200	21200	23500	27500
Dec’02	17100	15800	16500	21500	23500	27500
Jan’03	17100	16400	17000	23500	26000	29000
Feb’03	18400	17000	17600	24400	27000	31000
Mar’03	18500	17500	18000	24500	27000	31000
Apr’03	18800	17500	18200	24200	26500	31000
May’03	18000	17000	18200	23500	26000	31000
Jun’03	18500	17000	18400	22800	26000	30000
Jul’03	20000	18100	19800	22500	27500	30000
Aug’03	21900	21500	22000	24200	28400	30200
Sept’03	20900	19700	20900	23900	27750	29500
Oct’03	20900	20000	22100	23500	27750	29750

The main reason for rise in steel price is the global increase in the demand for steel. The domestic prices have followed the general pattern of international prices. The increase in demand from the domestic steel consuming industries has further reinforced the upward movement of prices. Sharp rise in the cost of metallics and certain other critical inputs like iron ore, coal, coke, nickel and ferro alloys has also contributed to the rise in prices.

This information was given by the Minister of Steel, Shri Braja Kishore Tripathi in a written reply to the questions of Shri Rajiv Ranjan Singh ‘Lalan’ and Shri Ram Jethmalani in Rajya Sabha today.