Indian steel makers to restrain prices - govt

NEW DELHI (Reuters) - The government, striving to control rising inflation, said on Wednesday it was confident its primary steel producers would not increase prices.

Steel Secretary R.S. Pandey told reporters domestic firms, which export cold-rolled coils and galvanised steel sheets, would increase imports of hot-rolled coils rather than rely on local supplies.

"Primary producers are holding their steel prices," Pandey said after meeting producers, denying media reports of a possible increase in prices. "Domestic availability of materials such as hot-rolled coils will then improve."

The government, anxious to cap inflation, has taken a series of measures, including a ban on exports of non-basmati rice and lower import duty on edible oils, and officials have said excise duty on steel may also be cut.

On March 25, steel producers agreed to curtail steel exports to help increase domestic supplies and check rising prices.

Steel prices have shot up by 33 percent in the last eight weeks.

India exports 4-5 million tonnes of steel annually and another 2 million tonnes of galvanised sheets and cold-rolled coils are exported.