New Delhi (PTI): Acknowledging concerns that steel prices were exerting inflationary pressure on the economy, leading steel makers on Wednesday decided to reduce prices of flat products by Rs 4,000 per tonne and those of rebars and structural steel by Rs 2,000 per tonne.

"We endorse the government's concern on steel prices contributing to inflation. Major steel producers have decided to reduce prices of flat products by Rs 4,000 per tonne and prices of rebars and structural steel by Rs 2,000 a tonne and hold these prices for next three months," state-run steel giant SAIL's Chairman Sushil Kumar Roongta said.

This reduction in flat steel prices will be done by all those producers who effected price increase last month. Reduction on rebars and structurals are being made although their prices were not increased last month or this month.

This price reduction would, however, not be applicable on exports or negotiated prices.

A delegation of steel industry captains met Prime Minister Manmohan Singh and apprised him of the problems being faced by the industry, including relaxation in ceiling limits on raising external commercial borrowings by steel companies for expansion plans and retiring their high cost debts.

Finance Minister P Chidambaram, Steel Minister Ram Vilas Paswan and Cabinet Secretary K M Chandrasekhar were also part of the meeting.

"We met Prime Minister Manmohan Singh and shared our concerns. We apprised him that prices of raw materials have shot up very high leading to increase in cost of production... he would look into the issues raised by us," Roongta said.

Ispat Industries Vice Chairman and Managing Director Vinod Mittal said the government has assured them of putting on hold the notification for implementing the export duty on steel.