Indian producers agree to curtail steel exports

NEW DELHI (Reuters) - Indian steel firms have agreed to curtail steel exports to help increase domestic supplies and check rising prices, a top industry official said on Tuesday.

Moosa Raza, president of the Indian Steel Alliance, steel producers had agreed to restrain exports of spot steel while exports under long-term contracts would continue.

He said by "restraining" exports, producers would all but stop spot sales, but he added that they might still ship small amounts.

"The producers assured the government that they shared concern over the rise in steel prices and its impact on the common man," Raza said. "All the producers said that all members of our alliance would restrain the export of steel products."

"The steel prices have been rising mainly due to the unhindered rise of input costs. Input costs are expected to rise further from April 1, 2008," he said.

Nearly 70 percent of Indian steel firms are members of the Indian Steel Alliance.

India exports 4 to 5 million tonnes of steel annually.

Indian steel producers have increased prices by about 5,000-7,000 ($124.6-$174.5) rupees per tonne in the last three months, a senior industry official said.

Tata Steel, the world's sixth-largest steelmaker, has raised prices twice this year, while others such as JSW Steel, Bhushan Steel and Ispat Industries have also increased prices this year.