October 07, 2008

Indian forging industry calls for controlling steel prices

Pointing out that steel prices have gone up by over 30% in the last 3 months, the Association of Indian Forging Industry said that it would become uncompetitive if the steel prices are not reined in and has called for policy measures that would discourage the export of steel and iron ore.

As per report, the AIFI has written to the finance ministry seeking a ban on export of steel or levy of export duty, ban on iron ore exports or increasing export duty on iron ore and has also threatened to approach the Monopolies & Restrictive Trade Practices Commission against the steel companies.

Mr Vidyashankar Krishnan president of AIFI and also MD of MM Forgings said that "Steel is the key input in forgings, accounting for about 60% of the input cost. If price hike continues, we will have to approach the MRTP commission against steelmakers who have been hiking prices frequently and in tandem."

Mr Baba N Kalyani CMD of Bharat Forge said that the forging companies are talking to their customers for reimbursing the steel price hikes. He added that "Such steep hikes in steel prices would hit the industrial production growth."

Mr Satish Garg MD of Sadhu Forging said that "Our customers are continuously evaluating their options. Many have pointed out that Chinese component imports are 15% to 25% cheaper."