Tata Steel, too, hints at price hike

Tata Steel is likely to increase prices, the company’s managing director H M Nerurkar hinted on Monday.

With Steel Authority of India (SAIL) having also hinted at a price rise, the New Year would see a host of steel companies cranking the tab up.

Nerukar was speaking on the sidelines of a conference at the CII-Suresh Neotia Centre of Excellence for Leadership on Monday.

“What has gone down has to go up”, he said, but did not elaborate.

Players like Essar, JSW Steel, Bhushan Steel and SAIL have all hinted on a price rise.
The price rise is being based on the premise of rising demand, particularly in the Indian market.

Steel prices had fallen by almost $100-150 a tonne over the last few months because of falling demand and a surge of cheap imports into the country. International prices have firmed up in recent weeks on the back of a good demand.

Industry sources, however, feel that apart from an increase in demand, the rise in prices of coking coal and iron ore will also result in steel firms fixing higher prices.

Nerukar said Tata Steel would ride on the capabilities of Corus. Western markets like Europe was shrinking and the company needed to make profits from lower costs of production. There are a lot of opportunities in the construction space back in India, he said.

On challenges for leadership issues he said, “Managing talent is crucial as some 25%-30% of the managers would retire from the company in the next 2-3 years”.