2nd price increase in single month by steel makers will hit industry badly: CICU

Ludhiana: Upkar Singh Ahuja, President and Pankaj Sharma, General Secretary, Chamber of Industrial and Commercial Undertakings (CICU) in a joint statement said that Indian manufacturing sector hit badly in last 6 months due to rise in commodity prices like steel, plastic, polymer, copper, yarn etc. Steel is one of major commodity being used by MSMEs in engg. sector.

Further mentioned that Indian HRC and CRC trade prices were recorded at an all-time high post announcement of the second price hike by major steel mills for Apr deliveries. Approximate prices for 2.0 -3mm thickness HRC stands at INR 63,000-64,000/t and CRC at INR 74,000-76,000/t ton, 3000-4000/- price hikes was taken in first week of April, view by Experts indicates price hike of 1700-3000/- flat steel products. Aprox price in August 2020 was 42000 PMT.

Upkar Singh Ahuja mentioned that large steel makers are encashing their production by exporting steel internationally. Steel prices in USA 1040 Usd PMT, Europe 1100 Usd, PMT, China 950 Usd PMT, India 800 Usd PMT. Need of the hour in that steel companies must sell steel on India cost basis rather than setting prices matching with international prices.

Ahuja also said that CICU demanded from the government that export of steel to be banned for 6 months; coke mines closed due to environmental cleanliness, must be given to operate their mines; Steel Authority of India must give priority to MSMEs and make distribution of Steel transparent; and incentive in PLI to be given to increase steel manufacturing sector to enhance capacity.

Rajat Gupta, Press Secretary, CICU highlighted that steel production capacity is 140 million ton, target is 300 billion ton by 2023.

On one hand India vision is to become Atamnirbhar and 5 trillion economy, on the other side availability of raw material is a major crisis for manufacturing sector.