Calcutta, July 2: Leading steel companies have slashed the price of benchmark hot rolled coils by Rs 1,000 per tonne from today.

A softening of world prices has prompted the price cut, the first in this fiscal. Rising imports on the back of a strong rupee have also led to the price reduction. India’s largest steel company, The Steel Authority of India (SAIL), said it reduced the price of flat products by Rs 500-1,000 per tonne.

The PSU did not change prices of long products, such as TMT bars, which is used in the construction industry.

“Prices have been reduced by Rs 500 to Rs 1,000 per tonne with effect from July 1 for galvanised plain and corrugated sheets. This reduction is in tandem with the fall in prices of certain steel products globally,” a SAIL official said.

Sources said private sector companies had also cut prices. Essar has brought down prices by Rs 700-800 a tonne; and so did Ispat. Tata Steel said it was yet to decide on a price revision. International prices in the third quarter (July-September) have fallen by $30 a tonne.

Domestic hot rolled coil prices is ruling at Rs 25,500, or $620, a tonne, while international prices are in the range of $630 a tonne. Though global prices were firm in the previous quarter — April to June — Indian companies did not take advantage of the situation.

The government had asked the companies not to raise prices as this would have caused a higher inflation rate.

The appreciation of the rupee against the dollar has pushed up imports into the country. Imports, which were at 2.1 million tonnes (mt) in 2005-06, increased to 3.9mt in 2006-07 and is expected to exceed 4 mt this year.