Price of steel products in Ludhiana suddenly escalated by Rs.2000 per MT

Ludhiana, February 8, 2016: Sh.Avtar Singh President Chamber of Industrial and Commercial Undertakings(CICU), in a statement released today condemned imposition of Minimum Import Price (MIP) on 173 Steel products ranging between US$ 341 to US$ 752 per ton valid up to 6 months to deter cheap imports from China, Russia, Japan & South Korea. China produces nearly half the world’s 1.6 Billion Tons of Steel and exported more than 1 Million Tons of the alloy last year, which is more than four times the 2014 shipments from European Union’s largest producer Germany. China had already devalued Yuan considerably during current fiscal to boost exports. MIS will have a serious debilitating impact on engineering exports which have already declined by 15% in the first nine months of the current fiscal.

Sh. Upkar Singh Ahuja, General Secretary said that MIP on Steel Products will protect hefty margins of Indian Steel Makers such as JSW Steel, Tata Steel Ltd, Jindal Steel & Power Ltd, Essar Steel India and Kalyani Steel. This measure will raise the cost of raw materials for engineering products by about 6-10 percent. Segments like Auto & Auto Parts, Cycle & Cycle Parts, Industrial & Electrical Machinery and other products of MSME Sector, which are operating on low margins and are facing cut throat competition will face sudden escalation in raw material price, giving a further jolt to the exporters. This move would also have an inflammatory impact on the entire manufacturing sector.

They have strongly appealed and urged upon Sh. Narendra Modi, Prime Minister and Sh. Narender Singh Tomar, Steel & Mines Minister, Govt. of India to roll back implementation of MIP on Steel Products for survival of Micro, Small & Medium engineering industry, which is already reeling under adverse economic scenario. They have further requested them to come out with a compensatory mechanism to make up for the increased raw material price for engineering industry.

Due to aforesaid action of Central Government, today price of steel products in Ludhiana have suddenly escalated by Rs.2000 per metric ton, which is a causing concern and biggest shock for MSME industry.