Hike in steel price riles industrialists

Tribune News Service

Ludhiana, February 15

The alarming increase in the price of steel has created panic in the industry and businesses, which depend on the product. Industrialists are worried over the price hike, shortage of steel created in the market and undertakings given by the big fish while getting bulk orders among other things.

Local industrialists said, “The Central Government needs to understand the plight of industrialists, whose business depends solely on steel/its products or else exporters of bicycles/other related steel goods, including fasteners/auto-parts etc, will be in huge losses.”

The Federation of Punjab Small Industries of India (FOPSIA) president, Badish Jindal, said, “All segments including bicycle manufacturers, auto-parts, fasteners etc are sore over the “cartelisation” of steel by big-fish, who are ruling the market.”

“The price of steel has seen an increase of Rs 1,500 per tonne in the last four days, which is exorbitant. Exporters, who have already got orders and are preparing/manufacturing things, which are to be dispatched within limited period, are the most worried,” he said. “They have already taken orders and now, they cannot ask the buyer to pay more for the product. Steel is being sold in black in the market, but government is mum, which is unfortunate,” he added.

SC Ralhan, president, Ludhiana Hand Tool Manufacturing Association, said five to six big companies had taken control over steel completely in the country. The most unfortunate part was that the government was supporting them in a quiet manner at the cost of other engineering industry, he added.

“Be it cycle parts, auto parts, hand tools etc, all are suffering because of increase in rates of steel,” he said.

“Industrialists are unable to get new orders and those already having orders, are finding it difficult to execute,” he added.