“International steel prices are hovering around $1,200 a tonne (during December 2007 to June) while our Hot Rolled steel coil prices are about $849 per tonne. This price differential is considerable in view of the fact their global prices have been upwardly mobile. But for the government’s intervention, this price difference would not have happened. I hope that the producers remain sensitive to the price situation,” secretary, Steel Ministry Raghav Sharan Pandey told The Indian Express.

A cursory look at the price rise in the Indian and global markets between last December and this month reveals that Indian HR coil prices were higher than international prices till the month of April. Price differential for the month of April began taking a reverse turn with global prices shooting to $970 while Indian HR prices slided to $906. Last month international prices shot up to $1,060 but Indian prices hovered around $875 and finally this month global prices were around $1,200 while Indian prices further slided to $849 leaving a price differential of nearly $250.

The see-sawing battle on prices between the government and the producers began in February when prices began to rise sharply. Concerned about the spiralling costs and the creation demand-supply mismatch, steel minister Ram Vilas Paswan asked the producers to lower their prices.

Red hot rod

$1,200 The approximate international price for hot rod coil

$849The Indian price for hot rod coil

$250The approximate price differential