AHMEDABAD (Commodity Online): Indian steel companies witnessed a fall in the stock prices owing to a possible change in the pricing system dynamics of critical raw material like coking coal and iron ore. The input material manufacturers abandoned the annual pricing system in favour of floating rate.

The recovery in the steel demand may reflect on manufacturers as suppliers of critical raw materials like coking coal and iron ore are mulling to abandon the annual pricing system in favour of a floating rate.

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This had an immediate and adverse impact on most of the stocks of major steel companies on the Bombay Stock Exchange (BSE) on Monday, March 22, 2010.

Steel majors including, Tata Steel Limited (BOM: 500228) that was trading at Rs.1231.30 sank by more than 2%, while JSW Steel (BOM: 500470) was trading at Rs.635.70 saw a slide of around 1%. Steel Authority of India Ltd (BOM: 500113) (SAIL), fell by a more than 3 per cent, trading at Rs.239.20.

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