Bizmen protest regular hike in steel prices

Tribune News Service

Ludhiana, October 6

Industrialists, who own furnace units in the city, are worried over continuous hike in steel prices. To show their resentment they protested against wrong practices and monopoly of those selling steel at exorbitant prices, here at Cycle Market today.

The protest was organised by the Fastener Manufacturer Association of India, All Industries and Trade Forum, Federation of Punjab Small Industries Association and Fastener Suppliers Association of India.

The protesters said public and private main plants had increased prices of steel by around Rs6000 per tonne in last eight days.

Following large producers secondary steel plants of Punjab also increased prices of ingot from Rs43,800 to Rs49,500 just in last 10 days. The effigies of the Finance Minister and the Steel Minister were also burnt during the protest.

In the last one year the prices of steel have increased by Rs20,000 per tonne. The main reason behind the hike is cartel of Indian steel companies formed under the name of Indian Steel Alliance. Shockingly, the government steel companies are also part of this cartel. The Government of India and the Steel Ministry is silent on the issues due to their vested interests.

“Local steel furnaces and rolling mills are working under the SMS cartel and keep on changing prices in every hour. Whenever they have to procure scrap they reduce prices of the SMS and after procuring the scrap from market they increase prices of the steel,” said Badish Jindal.

Blaming the government, associations said when Indian companies had their own steel plants then why they were allowed to manipulate prices.

“Now steel companies and the government is making excuses of hike in coal prices due to the Chinese factor. But, India has ample stocks of coal and can manage the scarcity for a long period,” he added.

“The margins of the industry are not above 5 per cent. So, under such circumstances it is hard for the industry to absorb the 12 per cent hike in steel prices. The industry will have to stop production if steel prices are not controlled,” he said.

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