JSW Steel, Ispat may consider price cuts in June

JSW Steel Ltd may consider cutting prices of flat steel products in June due to falling international steel prices, a top official said on Tuesday.

International steel prices are under pressure because countries still recovering from the economic downturn have been hit by the Greek debt crisis.

"There is some correction in prices. Internationally, flat and long prices are falling," MVS Seshagiri Rao, joint managing director and group chief financial officer of JSW Steel said.

Rival Ispat Industries Ltd will also look at cutting prices in June on hopes raw material prices will fall, the firm's director, marketing, Ashok Bharadwaj said.

"The overall trend is southwards. Raw material prices should fall for us to be able to lower prices," he said.

However steel makers expect the downside in prices to be limited as domestic demand continues to be strong and raw material prices are still high.

At 12.57pm, shares of JSW were down 2.9% at Rs1,023 and Ispat was down 1.43% at Rs17.25 in a weak Mumbai market that was down nearly 2%.