The steel companies will not increase the prices of steel for the time being. The government of India was pressurizing the steel companies not the raise the steel prices to avoid further increase of inflation rate. Following the government pressure domestic steelmakers such as Tata, Essar, Ispat and JSW Steel have decided to hold the steel prices.

Essar Steel Holdings CEO J Mehra said that the company has decided not to raise the prices of steel as it also considers inflation as major problem for the nation. Steel and related steel products contribute about 21 per cent in inflation level.

It is, however, believed that the companies have not increased the prices as global steel prices are stable since last month. Steel prices are reduced by $100 in the past 15 days.

The steel companies have reduced the steel prices by Rs 4,000 per tonne following government pressure. The rates of hot-rolled coils (HRCs) are in the range of Rs 45,000-50,000 in the domestic market at present. The prices of iron ore and coking coal have increased by 100% and 200%.