July 25, 2008

Government watching steel price situation – Mr Pandey

PTI quoted Mr RS Pandey union steel ministry secretary as saying that the government is keenly watching the trend in domestic steel prices, even as retail prices in domestic open markets have slumped by a whopping 16% to 19%.

Mr Pandey said that "The situation is being keenly watched. The steel industry's cooperation is essential in containing prices. The recent measures will ensure availability of long products through imports as the countervailing duty on them has been reduced to zero."

He said that steel prices in Mandi Gobindgarh markets have fallen during the past 7 days with ingot prices falling by INR 7,600 per tonne amounting to 19%, while prices of TMT bars have fallen by INR 7,000 per tonne, a decline of 16%. Similarly, prices of angle steel declined by 17% to INR 7,500 per tonne and those of MS Patra steel fell by 18% to INR 8,000 per tonne.

Meanwhile, India's inflation jumped to a 42 month high of 7.57% for the week ended April 19th 2008 as compared to 7.33% a week ago. According to official data on inflation released, the index for basic metals, including alloys rose by 1.1% during the week owing to surge in prices of cast iron pipes with 51%, basic pig iron and foundry pig iron with 8%, aluminum ingots with 3% and steel plates and strips with 2%.