Ludhiana Steel Users Denounce Steel Price Hike

Times of India reported that Ludhiana industrial belt based manufacturers of goods like bicycle parts, sewing machine parts, auto parts and other such
Ludhiana Steel Users Denounce Steel Price Hike
Ludhiana Steel UsersIndia Today

Times of India reported that Ludhiana industrial belt based manufacturers of goods like bicycle parts, sewing machine parts, auto parts and other such engineering components are reeling under huge pressure as the rates of steel have witnessed huge increase in the last few months and the new hike will prove to be disastrous for the industry

United Cycle and Parts Manufacturers Association former President Mr Inderjit Singh Navyug said “The rates of steel raw material of different types are at all-time high in India and for the last three months there has been no respite. If this was not enough, some private steel plants have hiked the rates of hot rolled coil by UNR 7,500 per tonne. The hike has come into effect from January 1 and these companies have been sent us the communication in this regard citing the reason that there has been increase in their input cost due to increase in rates of raw material used for making HR coil. With this hike, the rates of HR coil have reached INR 72,000-75,000 per tonne now. I don’t think bicycle industry will be able to absorb such a big shock, as already our cost of production is at its peak. Due to fear of losing out on customers, we have not increased our rates because of which we are incurring huge losses. At this juncture nothing except government intervention would work and if the rates of steel raw material do not come down by at least 20 to 30% we will have to suspend productions in our factories.”

Ludhiana Sewing Machine Industries Association President Mr Amarjit Singh Swan said “The rates of pig iron, which is the most used steel raw material by both sewing machine and parts manufacturers are soaring day by day and despite our repeated requests to the government, no corrective measures have been taken by ministry of steel. Already, over a period of three months, the rates of pig iron have increased so much that the cost of production of a sewing machine has increased by INR 250-300 but we are forced not to pass on this increase to our customers as it was after almost six months that demand for the parts and complete machine has picked up in India. But with no control over the rising rates and the pig iron rate breaching INR 41,000 per tonne mark already, it is very likely that we will have to suspend production for few days as we have already reached the limit of absorbing this hike.”

Fastener Manufacturers Association of India President Mr Narinder Bhamra said “Central government and specially ministry of steel have failed to dispense their duties and as a result now the situation has become such that be it HR coil, TMT bar, CR sheet and pig iron rates are touching the sky. With no check on the rate hike during the last six months, even after knowing that production of finished components in the factories has fallen to record levels due to lockdown in India, the Centre did not intervene. We have no hopes from the government now, therefore we have decided to call a meeting of all the leading business associations of Ludhiana to take a call on what action should be taken by Ludhiana’s industry to combat this situation.”

Related Stories

SteelGuru Business News
www.steelguru.com