Fastener makers in Punjab demand cut in steel prices

Fastener makers in Punjab demand cut in steel prices
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First Published: Tue, Jan 15 2008. 03 35 PM IST
Updated: Tue, Jan 15 2008. 03 35 PM IST
PTI
Chandigarh: The steel consuming industries in Punjab have demanded the immediate intervention of the central government for controlling the rising prices of the metal.
Urging the Union government to take steps to arrest the rising steel prices, Narinder Bhamra , president of the Fastener Manufacturers Association of India said that in the absence of the government initiating appropriate action to control the prices, they would be forced to adopt the path of agitation.
Demanding a cut on prices, K K Garg, president of the Northern India Induction Furnace Association said: “The government should immediately reduce the custom duty of 5% on scrap so as to ease the pressure on steel prices.”
Steel prices in the state have zoomed by almost Rs2,000- 3,000 per metric ton, following a hike effected by the steel manufacturers in the country.
According to steel manufactures in Punjab, the rates of steel ingot -- the key input for light engineering industry -- this month has jumped by Rs2,600 per ton to Rs28,900 per ton.
Similarly, the prices of scrap and sponge iron, raw materials for furnace industry, have surged to Rs23,000 and Rs20,500 respectively.
“Earlier, it was power and now it is steel which is hitting us hard. Our input cost has increased by 15% during this month alone because of this hike in steel prices,” Bhamra said.
The adverse impact of steel price hike is visible on the entire light engineering industry, including bicycle, fasteners as industry claim that their cost of production have increased by almost 10-15%, sending the industry to the path of closure.
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First Published: Tue, Jan 15 2008. 03 35 PM IST
More Topics: Punjab | Steel | fastener | prices | industry |