SAIL yet to assess impact

Steel Authority of India Ltd (SAIL) has said that company is yet to assess the impact of the latest coal price hike. In 2003-04, SAIL spent Rs 4,400 crore on coal against a turnover of Rs 24,178 crore. A 17 pc hike in coat prices will hit its bottomlines by Rs 748 crore. Asked whether the higher coal bill would prompt it to increase prices, the steel major’s commercial director S.K. Roongta said: ‘‘Steel prices are no more determined by any increase in input cost. They are now determined by market forces, particularly by the forces in the global market.’’ Sail will have to pay 20 pc more for coking coal under the new long-term contract signed by it with Australian mining companies, according to Roongta. Under the old contract, which will end this month, SAIL is paying $240 per tonne.