Global economic recovery will benefit Indian steel companies this year. Indian steel companies are eyeing higher prices in 2010 as stronger economic growth worldwide drives up demand for the critical building material. Some steel makers have already raised prices and are bracing for an increase in the cost of raw materials that go into the making of the alloy.
Stronger economic growth and growing demand for building material is expected to push steel prices higher in 2010. SAIL, a state owned Steel Authority of India Ltd has withdrawn the rebate of Rs.750 to Rs.1500 per tonne it started offering from November last year due to the increase in raw material cost. Tata Steel Ltd raised prices by Rs.2,000 per tonne. Industry expects the several other private players including JSW Steel Ltd, Essar Steel Ltd and Bhushan Steel Ltd may also follow suit soon.
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