Indian Pipe Manufacturers Seek Ban on Steel Exports
Steel ExportsMadhav KRG

Indian Pipe Manufacturers Seek Ban on Steel Exports

The Indian Pipe Manufacturers Association has sought government intervention to regulate the prices of steel. The industry body, in a 20 May letter to Steel

The Indian Pipe Manufacturers Association has sought government intervention to regulate the prices of steel. The industry body, in a 20 May letter to Steel Minister Mr Dharmendra Pradhan has sought a temporary ban on steel export in an effort to prevent steel players from diverting their produce to the international markets. It said “Pipe manufacturers and MSMEs are struggling for a long time due to increased prices and shortage of steel in the domestic market. We had approached the Steel Ministry, requesting your kind intervention for regulating prices and imposing a temporary ban on steel export.”

The IPMA said “Steel prices have increased more than 60% in the past 10 months and are expected to increase further by INR 4,000 per tonne in coming days. This has made existence for down-stream industries impossible who are totally dependent on integrated steel mills for their raw material requirement. As such, several down-stream industries have closed and many more are on the brink of closure.”

IPMA added “In some cases like API grades, oil and gas lines, prices have gone up by over 100-125% than what it was a few months ago. Commercial grade itself was has moved from being around INR 37500 per tonne to current levels close to INR 70,000 per tonne and still on the rise. This has severely impacted our project based business which needs certain validity. The primary steel manufacturers don’t give any validity more than a few days as they want to encash on the rising price trends thereby causing huge gaps and the resultant losses on account of steel volatility. This has put most of the pipe laying and construction business on a slow burner thereby negating the government’s push for faster infrastructure development.”

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