October 07, 2008

Indian steel users upbeat on government measures

It is reported that with the recent reports of Indian government proposals for abolishing the import duty on steel and withdrawal of duty entitlement passbook facility on its exports, Indian steel users are hoping for a respite in domestic steel prices.

Mr Narinder Bhamra president of Fasteners Manufacturers Association said that "We are too pleased to hear these proposals and have been intimated that a meeting to this effect took place in Delhi today."

Mr Charanjit Singh Vishvkarma president of united cycles parts and manufacturers association said that "The international prices of steel are around INR 40,000 per tonne. When made duty free, the prices will come down to INR 38,000 per tonne. We will be saving INR 7,000 per tonne if we import from outside. Moreover with open market, the monopoly of the major steel producers will also come down."

Mr KK Seth spokesperson of the association added that "We expect a good response from our producers only if they stop exporting steel which was our main demand and hence prices will automatically come down because abolition of import duty is still a proposal."