December 03, 2008

Indian SS capacity sufficient – ISSDA

PTI reported that, amid concerns that the government may curb exports to contain rising inflation, stainless steel makers said that there is no dearth of the commodity in India and as such they should not be treated at par with carbon steel industry which is facing flak for raising prices.

Mr NC Mathur president of Indian Stainless Steel Development Association, in a letter to union finance minister Mr P Chidambaram, said that "In view of major concern of the government about spiraling inflation and rising steel prices, stainless steel should be examined in exclusive separation in terms of its supply and demand in India. There has neither been a short supply nor any major change in prices over the last few months, much in contrast to the carbon steel industry products used in construction and automotive sector."

Pointing out that nearly 30% of stainless steel is exported from India after meeting domestic demand, Mr Mathur reminded that Indian stainless steel producers had increased prices in May 2007 owing to record breaking high cost of nickel, but following reduction and stabilization of nickel prices they reduced prices and passed it on to consumers.