MUMBAI (Commodity Online): Steel Authority of India (SAIL), the biggest steel producer in India,  may cut prices of flat steel products sold in the spot market by Rs 500/tonne in December in line with international price movement.

Flat steel products are largely used by automobile and consumer durable sectors. According to reports, a small correction of Rs 400-500 per tonne may happen in the flat steel products category.

However, prices of long steel products, used mainly for construction, have bottomed out and will stabilise at the current level, SAIL chairman SK Roongta told newspersons.

Early this month, steel producers, including SAIL, JSW and Essar, reduced prices of flat steel products by up to Rs 1,500/tonne as prices in some of the international markets had fallen to $450/tonne level. Currently, basic flat products are selling between Rs 32,000 and 34,000/tonne in the domestic market.

SAIL continues to see steel demand growing in India, led by infrastructure and automobile sectors, even as demand has slumped in China and other global markets. On the back of increased domestic demand, it is eyeing average 8-10% growth in sales volume for the year ending March 2010 over last year. The steelmaker produces around 13 million tonne of metal annually.

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