The commerce ministry yesterday had reduced floor price of HR coil to $ 254 per tonne from $ 302. When contacted steel secretary A K Basu, however, said revised floor prices for various steel items announced by the commerce ministry were more or less in line with steel ministry's recommendations.

"We accept the prices set by the commerce ministry," Basu told PTI. Expressing concern, SAIL sources said the basis for imposition of floor price on the prime grade of HR coils to restrict the cheap flow of imports was very much alive as indicated by the increasing volume ofimports of HR coils. Meanwhile, Cold Rolled Steel Manufacturers Association (CORSMA) welcomed the downward revision of HR coil floor prices saying "it was giving undue advantage to one segment while the economic viability of other down stream units had suffered".

The very basis for arriving at floor price of $ 302 per tonne was wrong as these were fixed on the basis of export prices of European mills for the period July-Septemeber 1998 when the ruling prices were very high, CORSMA executive director S C Mathur said.

CORSMA said that floor prices appear to have been fixed on the basis of recommendations of the anti-dumping directorate. The reduction in floor price ranged from $ 41 per tonne for cold rolled coils to $ 160 per tonne for alloy steel, an official notification said. The new rates would be effective from November 1 and valid for two months. For HR coils and HR sheets, the reduction was $ 48 per tonne and the minimum import price for HR coil would now be $ 254 per tonne as against $ 302previously. In case of HR sheets, the new floor price would be $ 269 per tonne as against $ 317 previously. The government also reduced the floor prices for seconds and defective imports of the seven items. In case of CR coils, the new floor price would be $ 351 per tonne against $ 392 per tonne.