Steel stocks melt on steel makers' assurance to hold price line

Six steel stocks were down between 1.26% to 4.45% at 10:50 IST on BSE on reports Steel Authority India and Tata Steel said have decided to hold steel prices for at least a few months.

Steel Authority of India (down 4.45% to Rs 175.20), Shree Precoated Steel (down 4.23% to Rs 202.50), JSW Steel (down 3.05% to Rs 850.10), Jindal Steel (down 2.92% to Rs 2,189), Tata Steel (down 2.55% to Rs 761) and Bhushan Steel (down 1.26% to Rs 812) edged lower.

Reportedly, JSW Steel on Monday 21 April 2008 had made a similar announcement. The decision is expected to please the government which has been trying hard to rein in surging prices of the metal in a broader objective to check inflation. Inflation had surged to a three-year high in late March 2008.

Tata Steel and Steel Authority of India (SAIL) announced their plans not to increase steel prices for next two-three months shortly after prime minister Manmohan Singh visited their plants and advised them to hold prices. Earlier, finance minister P Chidambaram had charged the steel producers with ‘cartel-like behaviour’ in the Parliament.