The government of India kneels down in front of steel makers, By issuing a notification, the government has withdrawn the export duty on steel imposed in the month of May.
Steel companies in India had wildly increased the steel prices and within a year had increased the steel prices up to 100 percent, Due to this, the prices of hot rolled coil crossed Rs 77000 per tonne and wire rod prices crossed Rs 72000 per tonne in India this year. Steel manufacturers were exporting steel in large quantities, which caused a severe shortage of steel products in India.
To prevent this, the government imposed a heavy export duty on steel and iron ore, so that steel companies could supply goods to India at cheaper rates. This move almost stopped the export of steel and iron ore and steel makers were forced to sell all the goods in India. As a result, steel prices in India came down by more than Rs 20,000 per tonne. Due to this, the prices of hot rolled coil came down to Rs 55000 per ton and wire rod prices up to Rs 50000 per ton.
But this decision of the government is sure to have a negative impact on steel consumers. As soon as the notification came into force, steel prices increased by Rs 3000 per tonne in a single day. Steel manufacturers will again increase their exports, due to which the industries here are likely to get less material. In the coming days, steel producers in the country may again try to increase prices by showing artificial scarcity in India.
The steel prices in china are still lower than India upto 7000 Rs per ton. So the Indian product manufacturers are facing steep competition in International market from China. This move of the government will lose the domestic market from the Indian manufacturers as cheap Chinese products may grip the Indian domestic market.
We request the government to revert this decision to save the Industry.