India: Steel industry reeling under hiked prices of raw material

Posted on 12 June 2018

Source: Times of India

The hike in the rates of raw materials used for making steel has left industrialists fuming once again, as ever since June 1, the rates of different raw materials have been increased by almost Rs 1,500 per tonne. The industrialists are blaming the steel cartels for the hike at a time when the industry is already facing a slump.

Jagbir Singh Sokhi, president of Sewing Machine Development Club, said, “Union government has failed to address the issue of unnecessary hike in prices of raw materials. Pig iron which was close to Rs 26,000 per tonne six months ago is now close to Rs 35,000 per tonne and in June alone the rates have increased by almost Rs 1,000 per tonne. Every raw material whether its ingot, TMT or coil, rates are skyrocketing from the past few months and it is only due to the nexus of some of the large-scale steel manufacturers with some middlemen who are making money by fleecing innocent businessmen.”

Sokhi also added that it was high time since steel ministry wakes up and takes stock of the situation due to which thousands of small industries are on the verge of closing down.

Jaswinder Thukral, president of Janta Nagar Small Scale Manufacturers Association, said, “This is indeed a worrisome situation. Since the past one year alone, the cost of raw material for making steel has shot up as high as Rs 15,000 per tonne in some cases. But Central government and ministry of steel are watching the industries being destroyed by the steel cartels. In the month of June too rates of different type of raw materials saw a hike between Rs 500 and Rs 1,500 per tonne which is shocking.” 

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