“However, the rise in price is market driven, we have no control on it. Iron scrap is hardly available due to shortage,” said K.K Garg, president of Induction Furnace Association. Its rates are rising each day. When leading steel producer increases their rate, local general steel industry and local steel scrap traders also hike their rate to create artificial scarcity, he added.

The local steel producers are not causing any problem for the steel using industry. There are reasons like high cost of manganese, ferro silicon, aluminum, chrome, sponge iron, uranium and burning losses. The hike in the cost of mould and high rates of electricity are among the reasons leading to increase in the prices, he added.