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Punjab Association Urges Steel Minster to Curb Volatility in Steel Prices

Steel News - Published on Fri, 12 Jul 2019

Image Source: SteelGuru
The Tribune reported that Federation of Punjab Small Industries Association has written to Union Minister of Steel Mr Dharmendra Pradhan that since last two years the steel manufacturing and consuming industry is in big trouble due to the average daily fluctuation is 1-2 percent ion of steel prices in the country. FOPSIA president Mr Badish Jindal said “Earlier a cartel was managing the prices of steel by issuing daily SMS alerts and secondary steel companies were forced to maintain their prices as per the SMSbut it was finally stopped with the help of police and judiciary. Now, many other future commodity exchanges are issuing daily steel prices on the apps. They issue prices for main three secondary steel producing cities, including Gobindgarh, Ghaziabad and Raipur. In last one month, they showed fluctuations in the prices upto 15 per cent.”

He said “They keep the price as per their profit making tendency as they book steel in advance on higher prices and bring down its prices near supply dates. Their daily fluctuation in steel is from 1-3 percent, which means around INR 400- 1,200 per tonnes per day. The secondary steel companies in India are forced to keep their prices as per the daily index prices of these commodity exchanges. So, they have reduced steel prices to around INR 4,000 per metric tonnes during last one month.”

He wrote “Whereas the primary steel companies announce their prices as per the decision of Indian Steel Alliance, an association of big primary steel plants. Even today the difference between primary and secondary steel is more than INR 7,000, which is around 20 percent of the steel cost. This is badly affecting the steel manufacturing and steel consuming industries. The steel sector is already in red category and its huge losses will increase trouble for banks, revenue and steel consumers.”

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Posted By : Ratan Singh on Fri, 12 Jul 2019
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