Leading steel companies are set to raise the prices of hot-rolled coils by Rs 1,200 per tonne from February 1.

Essar Steel, Ispat Industries, and Jindal Vijaynagar are understood to have firmed up plans to hike their prices, while others like Tata Steel and state-owned Steel Authority of India Ltd are expected to follow suit in a day or two.

"We will take note of the situation and decide on a price hike at the earliest. We will follow the market trend and decide on the quantum," a senior SAIL official told Business Standard.

Once the price hikes are announced, hot-rolled coils will cost Rs 18,300-18,500 per tonne, up almost 60 per cent since the beginning of 2002-03. Prices of hot-rolled coils stood at around Rs 11,500 per tonne in April 2002.

The steel companies have been steadily raising the prices of hot-rolled coils during the current financial year riding on a buoyant demand and rising international prices.

However, the price hike has not been more than Rs 1,000 per tonne. In the beginning of January 2003, the prices of hot-rolled coils were raised by Rs 100-200 per tonne. The price hike from February 1 will, therefore, be the biggest in 2002-03.

Steel producers said the prices were being raised following buoyant market conditions.

A S Firoz, chief economist, joint plant committee of the steel ministry said, "Prices in the domestic market will remain firm till September.

Market conditions have been extremely good and consumption has seen a steady 5.5-6 per cent growth during 2002-03 compared to the previous financial year."

It may be noted that SAIL has hiked the prices of hot-rolled coils for about seven times during the current financial year.

The company raised prices continuously from April to July and then again from November to January.

It, however, had to roll back the price hike of Rs 500 per tonne announced in August-September due to market pressures.

Essar Steel and Tata Steel have also increased prices of their products about five times during 2002-03.