March 22: February was a bad month for Indian steelmakers in terms of the prices they got in the market. The prices of most steel items fell significantly during the month compared to January this year, creating further pressures on their bottomlines.According to statistics available from the office of the development commissioner of iron & steel (DCIS), billets in the Calcutta market, for example, fell by Rs 325 per tonne by the end of February from Rs 10,525 per tonne on January 27. The price fell to Rs 10,500 per tonne in the beginning of February and remained static for two weeks. It dropped to Rs 10,300 on February 16 and declined further to Rs 10,200 on February 23.
In Mumbai and Chennai regions too, the price fell from Rs 11,500 at the beginning of the month to Rs 11,200 by the last week of February. In Delhi region, however, the price increased by Rs 100 to Rs 13,700 by the end of the February.
The prices of 6mm wire rods coil in Calcutta fell from Rs 14,250 per tonne on January 27 to Rs 13,900and remained static for three weeks before moving up to Rs 14,100 on February 23--the same price as on January 5. Its price in the Delhi region remained static at Rs 15,500 per tonne throughout the month except for the beginning of the third week when it declined by Rs 100. In Mumbai region, the prices fell by Rs 200 per tonne to Rs 14,800 in the second half of February after remaining static in the first half at Rs 15,000.
However, in Chennai region, its prices went up sharply from Rs 15,000 per tonne on February 2 to Rs 15,800 on February 23.
After remaining static at Rs 17,700 per tonne in the first half of February, the prices of 2mm hot rolled (HR) coil declined to Rs 17,550 in the third week and further slid down to Rs 17,500 in the last week February in Calcutta. Its prices in Delhi and Mumbai regions remained static at Rs 17,100 and Rs 18,600 per tonne respectively throughout the month. In Chennai, the prices, however, increased by Rs 100 per tonne to Rs 18,300.
The maximum fall of Rs 850 pertonne was witnessed in the prices of 0.63 mm cold rolled (CR) coils during February in Calcutta region. Its prices fell from Rs 20,500 on February 2 to Rs 19,650 per tonne on February 23. In Delhi, the prices fell from Rs 21,600 per tonne at the beginning to Rs 21,400 at the end of the minth. In Chennai, it fell from Rs 22,000 to Rs 21,500, while in Mumbai it remained static at Rs 23,000 per tonne.
The prices of 0.63mm GP sheets fell by Rs 300 from Rs 24,800 per tonne in Calcutta and by Rs 100 from Rs 24,400 in Delhi, while it remained static at Rs 27,000 in Mumbai. However, in Chennai it increased from Rs 26,000 to Rs 26,300 per tonne.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
