Ministry in favour of revision of steel prices

Kolkata, February 8 The Union Steel Ministry is in favour of a downward revision of steel prices, although it would first find out whether the price increase is justified or not. Union Minister for Steel, Chemicals and Fertilisers Ram Vilas Paswan, who was in Kolkata on Friday, said the steel secretary has been given the onus to find out whether the price hike is proportionate to the increased input costs. “If it is found that the price rise is not proportionate to the hike in input cost, the ministry will mount pressure on steel makers to lower prices,” Paswan said.

He said the ministry will hold a meeting with all the steel makers on February 15 to discuss this issue and take a final decision.

Steel prices have gone up by an average of Rs 2,000 to Rs 2,500 per tonne across all categories and is further expected to go up by another 5 to 8 per cent within this month. Paswan said it is true that higher costs of coking coal and iron ore have impacted steel prices and public sector steel makers also have been forced to increase prices. “The ministry can bring about an immediate control on steel prices of public sector units but that will have hardly any impact on the market, as two third of it is dominated the private players. Controlling prices of PSU steel will help no one but the middle men,” he said.