October 12, 2008

UGSL sees steel price hike by month end

Uttam Galva Steel Limited sees a hike in steel prices by September end due to increase in raw material prices and freight prices. Mr Ankit Miglani director of UGSL during an interview with moneycontrol.com said that “As far as mild steels are concerned, I am quite confident that at the month end, there will be a hike in prices of some sort.”

Mr Miglani said that “I cannot commit right now at what value that price will be because it will not be decided till the end of the month. Everyone will evaluate how the market is and then take a fresh call on the prices. We have to keep in mind that there are long term contracts to consider as far as mild steels are concerned, so there are a lot more variables. But there is absolutely no doubt that all raw material prices and freight rates have gone up significantly, everything is contributing to an increase in prices coupled with the fact that this is the beginning of the demand side.”

He added that “It is not just iron ore, coke prices have gone up, coal prices have gone up, freight has gone up, overall every aspect of a costing has gone up. So there would most certainly be an impact.”