Essar Steel announces a reduction of Rs. 560/ ton in its sales price
August 23, 2004
Essar Steel today announced a reduction of Rs. 560/ton in its sales price (including excise duty) to its bona-fide and direct domestic customers. The price reduction takes into account the differential cost structure of various steel producers as Essar Steel does not have its own captive iron ore/ coal mines and control over its fuel cost which some of the other steel producers have. The over all increase in prices over the last couple of years is mainly on account of the significant increase in input cost which has resulted in higher finished product prices across the world.
Commenting on the price reduction, Mr. Prashant Ruia, Managing Director, Essar Steel said, "Essar has already taken various proactive steps to provide stability to the domestic market which includes maintaining the same price since March 2004, introduction of quarterly pricing etc., for the steel industry. The current price reduction not only provides stability to the domestic market but also will give competitive advantage to all consumers of flat products as even today domestic flat product prices are significantly lower than the prevailing international price".
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