Punjab industry has requested Centre to put a hold on export of steel for at least six months, citing the steep increase in steel prices - Rs 42 per kg to Rs 65 per kg for cold-rolled sheets (CRC) and Rs 36 per kg to Rs 56 per kg for hot-rolled sheets (HRC) - in the past five months. In a virtual meeting, the industrialists expressed their concerns to Finance Minister Nirmala Sitharaman. They also had an in-person meeting with Union Minister of State for Commerce and Industry Som Prakash, where they had requested them to enforce
a ban on steel export. They have also written several times to the commerce and steel ministries on the issue.
Cost of re-rolled steel has gone up by Rs 10 per kg, while the price of plastic has gone up by Rs 15 per kg in the same time period. Upkar Singh, president of the Chamber of Industrial and Commercial Undertakings (CICU), said, “Steel is one of the prominent raw materials for the engineering industry. It is processed and after value addition, sold as finished products to automotive, tractor manufacturing, hand tool companies etc. It is an important component in the bicycle industry as well.” “Rise in demand of steel, low production of steel due to Covid restrictions, increase in export of steel and cartelisation by steel companies are cited as main reasons,” he added.
“Media reports indicate that large steel rolling mills are preferring to export steel. They have booked orders for Europe, Middle East etc, which is one reason for shortage of steel in India. Thus companies are increasing prices at their will,” said Pankaj Sharma, general secretary of CICU. “Cost of steel prices is adding to cost of MSMEs and hence they will run into losses. MSMEs will not be able to book orders considering current raw material prices and a number of MSMEs will be forced to close due to this increase in prices of basic raw material,” he added.
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