Steel cos levy surcharge, prices up by average Rs 5,000

NEW DELHI: In a move that is bound to attract fiscal measures from the government, steel makers on Wednesday raised prices of their products by imposing an average 'raw material surcharge' of Rs 5,000 per tonne.

"We have imposed a raw material surcharge of average Rs 5,000 per tonne on various products owing to steep increase in raw material prices and we will pass it on to customers," said the Director, Finance, JSW Steel Mr Seshagiri Rao.

Similarly other leading utilities such as Ispat, Essar and Tata too have hiked prices of the products by levying the raw material surcharge, an industry source said.

However, when contacted spokespersons of Essar and Ispat did not comment while Tata Steel spokesman was not available for comment. But state-run steel giant SAIL emphatically denied levying any surcharge.

A SAIL spokesman said the company had not taken any decision on the same. Justifying the rise in prices, a steel industry official said raw material prices have shot through the roof.

Besides, steep rise in iron ore prices, coking coal prices too have gone up by more than 200 per cent. "We have repeatedly expressed our concern to the government that we need raw material security and moderate freight rates, none of which is forthcoming . The tremendous costpush is likely to rip through our bottom lines," he said. - PTI