Steel producers to hike prices on rising costs
Financial Express

In a move that will impact a slew of sectors, integrated steel producers like Steel Authority of India Ltd, Tata Steel, JSW, Essar Steel and Ispat Industries are likely to hike their prices next month to offset the rising prices of key raw materials like iron ore and coking coal.
Industry sources said these companies would take a final decision on the price hike by the end of the week. The sources said the hike in the price of hot-rolled (HR) coils-the base product-would be Rs 800-1,000 a tonne. At present, HR coils are priced in the domestic market at Rs 28,000-29,000 a tonne. Globally, HR coil prices rule in the region of $650 a tonne.

Sources said the 15-20% hike in the price of iron ore and coking coal mandates an upward revision in steel prices. While iron ore prices are at around $150 a tonne, coking coal is at around $135 a tonne. For both raw materials, most domestic steel companies depend on imports. With steel production rising, the supply of these raw materials has tightened considerably in recent months.
Between January and December this year, steel companies hiked prices thrice, with the last revision in October, when prices were increased by around Rs 500 a tonne.

An increase in steel prices will impact a wide range of industries, from automobiles to white goods. Automobile companies have already announced that they would be increasing the sticker price on passenger cars from January due to rising input costs. However, a price hike is not expected in long products, which are mostly used in the construction sector, since prices are already ruling high here.
Though the government does not usually interfere in such price revisions, the steel ministry constituted a committee earlier this year under a joint secretary with industry members to monitor the price situation.

Industry sources said that since no prior permission from the government is required to raise prices, they do not apprehend any problem.

China move to raise taxes on coal, steel to hurt local firms
Financial Express, 25-12-07

China will increase export taxes on coking coal and some varieties of steel, besides introducing such taxes on other types of finished products, a move that could create serious problems for coking coal-starved domestic steel industry.

“China will impose or raise export duties on products including wood pulp, coke, alloy steel, steel billets, and some finished steel products in 2008, the ministry of finance (MOF) announced on Friday. The move aims to rein in the rapid expansion of the industries that consume more energy and discharge more pollutants,” according to a China’s commerce ministry statement.

The announcement made on December 21, confirms rumours that Beijing is planning further measures to curb exports of high polluting and resource-intensive steel products.
Although India does not import steel directly from China, certain Chinese varieties of the alloy make way into India through other countries due to lower prices, sources said.

“China will next year levy lower temporary import duties on more than 600 kinds of products including crude oil, coal, key equipment and component parts, doubling the figure of last year, amid efforts to trim the trade surplus and optimise economic structure,” the statement said.

The ministry also said China will impose special preferential tariff on some exports from 39 African, Southeast Asian and middle east nations.
The ministry added the nation’s general tariff level for 2008 will be held at 9.8%, with the tariff level for farm produce would be at 15.2% and that for industrial products at 8.9%.