Steel prices may not go up in October
On the flip side, a stronger rupee has sharply eroded realisations from exports, triggering a clamour among steel companies for higher credits under the duty free entitlement passbook (DEPB) scheme.
The Union steel ministry has already fixed empirical evidence that realisations from exports are lower than domestic sales and is discouraging steel shipments overseas.
With demand for higher DEPB credits unlikely to be met, domestic market will see higher stocks.
For September sales, few integrated steel companies, barring Steel Authority of India Limited (SAIL), the largest producer, had implemented a marginal price hike, ranging between Rs 500-700 per tonne on hot rolled (HR) coils.
Marginal it was, but nevertheless the first price increase in 2007-08.
