Economic Times reported that domestic steelmakers like JSW Steel and Essar Steel have decided to increase prices this month, a decision the private firms say has been forced by a rise in input costs due to the sharp depreciation in the rupee.

The price hike comes even as companies are facing slow demand for auto and consumer grade steel.

An Essar Steel official said that "We have no option other than to raise steel prices. With coal and natural gas prices going up, rupee depreciation has adversely hit us adding that the company was looking to increase prices by INR 1,000 to INR 1,200 per tonne.

JSW Steel marketing director Mr Jayant Acharya said that "We are looking to increase prices across product lines. We are in discussions with customers on this and will decide on the quantum of the hike shortly. A combination of factors had prompted steelmakers to increase prices despite the slowing domestic demand. International steel prices have bottomed out and raw material prices are inching up. To top it up, rupee volatility has erode

d margins.”

Source - Economic Times