Country’s largest steel maker, Tata Steel, has hiked its product prices by Rs 500 to Rs 750 a tonne.

Confirming the development, a Tata Steel source said: “We have increased the prices of hot-rolled and cold-rolled steel items by 5 to 7 per cent on our monthly contracts in select regions.”

The increase in rates would be effective from June 1.

The company last month has also increased the rates of long products by Rs 300-500 a tonne.

In the recent past, the demand for steel products has jumped considerably.

As per the Steel Ministry data, the country’s steel consumption in the first two months of the current financial year has enhanced by 6 % to 8.22 million tonnes (mt) against 7.76 mt recorded in the same period last year.

Moreover, the production of steel rose by 2.4 % to 9.24 mt (9.02 mt) between April and May.

Experts do believe that apart from Tata Steel, other steel majors including JSW Steel, Jindal Steel and Power Ltd and SAIL would also increase their prices in the coming days.

Amidst the worldwide economic crises, the country’s domestic market was less affected than the global market.