BL quoted Cold Rolled Steel Manufacturers Association of India as saying that India’s domestic steel production has been lagged behind consumption and demand for the last three years resulting in high domestic price levels especially for hot rolled coils.

Mr SC Mathur ED of Cold Rolled Steel Manufacturers Association said that, as per Joint Plant Committee and Ministry of Steel data, shortfall in production resulted in shortage of both long and flat steel products. Mr Mathur said though India was ranked as the cheapest producer of HR coils, domestic prices were the highest in the world.

Mr Mathur said “Due to shortage prices were being jointly fixed by five major producers on a monthly basis by adding average ocean freight of USD 50 per tonnes plus customs duty of 5% and port charges to the spot global FOB prices.” Mr Mathur said that the current domestic price of INR 27,800 per tonnes excluding all taxes and duties for HR coils, or USD 660 per tonnes was higher by USD 140 per tonnes as well as the spot global prices of USD 520 per tonnes FOB.