Coimbatore Engineering Units to from Steel Buying Group

Times of India reported that Coimbatore based associations of engineering industries have decided to form a consortium to purchase raw materials
Coimbatore Engineering Units to from Steel Buying Group
Coimbatore Steel Buying GroupWiki

Times of India reported that Coimbatore based associations of engineering industries have decided to form a consortium to purchase raw materials directly from manufacturers like SAIL and Vizag Steel to minimize the impact of price rice and meet the growing demand. Coimbatore District Small Industries Association president Mr MV Ramesh Babu said “Usually, the price of raw materials remains stable without many fluctuations for two to three months. So, we could afford to manufacture and handover the products for the quoted price. But now the raw materials price changes every few hours. With the fluctuation, it is difficult to manufacture a product for the quoted price, because by the time we fix an order and purchase raw materials, the price would increase. To become less dependent on traders, they would form a consortium to procure raw materials from SAIL to be distributed among the member industries. We will place orders after obtaining requirement details from the member industries. SAIL wants us to make a minimum purchase of 400 tonnes, which is huge.”

Mr Babu said they would also request the government to suspend import and antidumping duties on raw materials, and stall export for at least three months, so that availability of raw materials in the country would increase and price would drop automatically.

He added "If the issue is not sorted out within 15 to 20 days, it will become unmanageable. Some foundries have already stopped production and it has started to affect engineering industries.”

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