Business

SAIL issues advisory to hold steel prices

NEW DELHI: In its bid to help the Government rein in inflation by containing rising prices of steel in the retail market, the Steel Authority of India Limited (SAIL) on Friday issued a written advisory to its dealers and long-term contract customers and warned of punitive action in case of any violation of its stipulations.

In its advisory, SAIL has asked its MoU dealership customers to limit their retail margins to within Rs 1,200 a tonne over the price at which they have procured the products from it. “Any departure from this limit will invite stern action. These customers have also been advised to inform SAIL about their stockholding of SAIL products on a weekly basis,” the statement said.

Alongside, the public sector steel major has reminded its MoU (memorandum of understanding) customers of HR (hot rolled) coils that the purchases made by them were only meant for actual consumption and not resale. SAIL, which has not changed its selling prices since May in line with its commitment to the Government, has also cautioned dealers against selling its products beyond the maximum recommended retail price limits. Branch sales offices of the steel major have been alerted to keep a strict vigil on this.

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