Steel shares in demand

Steel shares in demand

Shares of top three steel producers gained between 2.95% to 4.76% after reports that local steel producers may not roll back prices, despite government intervention to reduce the prices.

Tata Steel gained 3.80% to Rs 787, Steel Authority of India advanced 4.76% to Rs 208.15 and JSW Steel rose 2.95% to Rs 1143.45 at 12:41 IST on BSE

Tata Steel saw volumes of 3.98 lakh shares on BSE. Steel Authority of India and JSW Steel witnessed volumes of 7.94 lakh shares and 55,983 shares respectively on BSE

Meanwhile, BSE Sensex was up 702.93 points or 4.16% to 17,655.41, on strong cues from the global markets. Stocks rose across the globe as a surprise increase in US retail sales in January 2008 helped ease recession worries in the world's largest economy

As per reports, the steel ministry has called for another meeting with the major producers today, 14 February 2008. The first meeting between the ministry officials and the major producers was held on Tuesday, 12 February 2008, when the industry representatives presented their reasons on the recent increase in prices. It may be recalled that steel producers had hiked prices by Rs 500 to Rs 1,500 per tonne across various products in early February 2008 following increase in raw material prices.

However, the major domestic steel producers are adamant and expressed their inability to roll back prices in the current scenario in the wake of spiraling input costs.

A rollback if it happens would be the second in this financial year. In March 2007, at the behest of the government, the industry went for a partial rollback to rein in inflation.

Meanwhile, the producers may also demand immediate allocation of captive iron ore blocks to integrated steel producers, reduction of railway freight and removal of congestion charges by railways for the transportation of iron ore to ports.

Tata Steel’s net profit rose 0.5% to Rs 1068.58 crore on 11.3% growth in net sales to Rs 4973.92 crore in Q3 December 2007 over Q3 December 2006

Steel Authority of India posted 31.50% rise in net profit to Rs 1934.66 crore on 12.41% rise in total income to Rs 9,847.64 crore in Q3 December 2007 over Q3 December 2006.

JSW Steel posted 0.30% fall in net profit to Rs 328.18 crore on 12.10% rise in total income to Rs 2563.08 crore in Q3 December 2007 over Q3 December 2006.