Consumers and raw material providers of steel are up in arms against producers over rising prices of finished products, prompting them to write to the central government.
Steel producers are justifying the price hike by pointing towards a shortage of iron ore, among other market factors. Mining companies that supply iron ore have sought a ban on export of steel products. According to representations reviewed by
Business Standard, both producers and raw material suppliers have written to the Prime Minister s office. Consumers of steel, such as electronic manufacturers, are also seeking a regulation in the prices and a 15 per cent export duty. They have written to the ministry of power in this regard.
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Steel prices in India may come under pressure as govt mulls ‘corrective’ steps
Steel companies have argued that they have been forced to raise prices as prices of iron ore, their primary raw material, have more than doubled since June and were currently costing them Rs 8,000 a tonne. December 24, 2020 / 04:34 PM IST
Akashdeep Metal Industries | Non-promoter entity Anisha Impex Ltd alongwith PACs increased stake in the company to 16.91 percent from 12.52 percent earlier, via open market transaction. (Image: Reuters)
Steel prices in India, which have surged 55 percent in the last six months, are likely to come under pressure as the Union government is expected to take some “corrective” steps.
The mystery behind rising iron ore prices
Over the past couple of months, the steel industry has witnessed constant dialogue between iron ore miners and steel producers, aimed at reaching common ground on the availability of a key commodity for manufacturing steel iron ore. While manufacturers of the alloy have gone up to the Prime Minister’s Office (PMO) seeking a ban on exports of iron ore citing sky-high prices, miners of the key raw material whose pellets form about 60% of the cost of production of steel claim that steel mills have been importing iron ore to suppress prices of the commodity despite huge stockpiles lying idle. Both sides have made sure to supplement their claims with data.
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