December 02, 2008

Small steel users reactions to price control measures

Express News Service reported that steel users industry has expressed its dissatisfaction over the move taken by steel ministry over steel price control.

Mr Joginder Kumar president of federation of tiny and small industries said “Steel producers have been asked to reduce the prices substantially. In the case of steel tubes and pipes a ceiling of INR 48,000 has been fixed. At present these are being sold at more than INR 53,000 per tonne. However, the actual price is INR 41,000, so the move is of little effect.”

However, the Chamber of Industrial and Commercial undertakings have appreciated the move of reduction in steel prices by 10% of the existing market prices. Mr PD Sharma president of Apex Chamber and Commerce said “The steel producers have assured the government to improve the supply of steel. The role of retailers shall be controlled. They have also given the assurance that there will be no increase in prices in the near future.”

He said that the steel prices in our country are more by USD 100 per tonne on an average as compared to the domestic price in China and other countries. Our rates need to be compared with the domestic price of other countries and not with the spot international prices.