Fluctuating steel prices stump industrialists

Shivani Bhakoo

Tribune News Service

Ludhiana, February 10

Sudden fluctuations in steel prices has irked industrialists. First a decline and then a sudden increase in the prices of steel have complicated the situation for the local industrialists. Those dealing in the product are neither taking bulk orders nor making huge purchases.

In the past five days, the cost of steel has escalated from Rs 33,000 to Rs 35,200 at Mandi Gobindgarh. The major reason given for this sharp increase is a sudden scarcity of the product in the market and changing weather conditions, which has resulted in resumption of construction works which had earlier been stopped due to extreme cold.

Most industrialists here are unaware about the cause of sudden increase in steel prices. Avtar Singh Bhogal, who buys special steel parts for bicycles, said there had been a sudden scarcity in the market and the stock-holders are making the best of the situation by selling the material at exorbitant prices. “We are all confused and don’t know the reason for a sudden increase in steel prices. But we cannot help it and have to go by the market,” he said.

President of Federation of Punjab Small Industries Association Badish Jindal said because of severe cold weather, most construction works were stopped earlier. While now the weather is becoming comfortable, the construction works (private, commercial etc) have been resumed, thus leading to an increase in the demand of steel. As the demand has increased, the stock-holders have increased the prices. In the past five or seven days, there is an increase of up to 6-7 per cent in steel prices.

At the end, consumers have to bear the brunt of these increasing prices. There is no check on the ever-increasing prices of steel as the big companies rule the market, said Jindal. He also said the World Steel Association, a global body, which released its short-range demand outlook recently, said India’s growth ranked the highest among major steel-consuming countries.

President of Federation of Industrial and Commercial Organisation Gurmeet Singh Kular said they were booking small quantities to avoid huge losses amid fluctuating prices of steel.