State-run Steel Authority of India Ltd (SAIL) on Thursday said that it may cut prices of some of its products in the near future, reports PTI. The company last week had raised prices of flat and long products by Rs1,500.

"Since long steel product prices have gone up to a certain level, there may be some correction in the category in near future," SAIL chairman SK Roongta said when asked if the company will revise prices of its products soon.

Long steel products are mainly consumed by construction and infrastructure sectors.

It is learnt that the steel ministry had also expressed concerns on increase in steel prices by domestic firms, including SAIL and Tata Steel, which own captive reserves of iron ore and coking coal.

Many steel companies had cited increase in input cost besides the demand surge, for the price increase. Iron ore prices, which had fallen below $50 a tonne last year, are hovering at $100 a tonne at present.

However, Mr Roongta said, "Input cost does not determine steel prices. It’s market fundamentals which decide prices."

On prices of flat steel products, which are primarily consumed by automobile and consumer durables industries, he said, "Prices are governed by international trends and international prices are rising."

— Yogesh Sapkale