Indian & Pakistani Steel Associations Defend Price Increase

After unprecedented increase in steel prices, which have made steel users to raise red flag, large steel mills associations in India & Pakistan are justifying
Indian & Pakistani Steel Associations Defend Price Increase
Steel Price IncreaseShape Cut

After unprecedented increase in steel prices, which have made steel users to raise red flag, large steel mills associations in India & Pakistan are justifying the steel price increases denying the charges of profiteering. The Indian Steel Association informed the Prime Ministers Office “We would like to highlight some of the very serious and compelling reasons which have left the steel industry with no recourse but to raise prices of steel from time to time. As India is an open economy, the steel prices in India move in sympathy with the international prices. The Indian steel prices even though have gone up is still at a discount to that of international prices. The Indian Steel Industry is currently facing very testing times as the iron ore supply has been badly squeezed and at the same time, the prices of iron ore have shown an unprecedented rise in both national and international markets. The primary reason behind the adjustment of prices has been on account of the sharp rise in iron ore. We would like to make it clear that it is never our intention to indulge in profiteering, nor in taking any undue advantage of the prevailing market situation. As a responsible sector of the economy, we are deeply committed to the all-round development of our nation and we are hopeful that the situation will improve in the near future.”

The Indian Steel Association suggested “A temporary ban of iron ore export for a 6 month period till the situation stabilises is the need of the hour. This will help the domestic steel industry by increasing the availability of iron ore in the country.”

Similarly, Pakistan Association of Large Steel Producers rejected the statements made by the Chairman of Association of Builders and Developers accusing steel sector cartelization or conspiring against the PM's Naya Pakistan Housing Scheme. Pakistan Association of Large Steel Producer said "The Pakistan Association of Large Steel Producers wants to make it clear that the most recent increase in the prices of steel bars is a result of drastic increase in steel melting scrap prices internationally. This phenomenon is not confined to Pakistan as it is happening the world over and is due to shortage of scrap in the international market caused mainly by Covid related supply chain disruptions but also due to heavy snowfall in many countries, which reduces the collection of scrap. Statements made by ABAD are completely illogical.”

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