Ukraine effect: Steel and allied industries reel under price hike

Russia and Ukraine account for nearly 20 per cent of the global export of steel. In the aftermath of the war, the price of steel has gone up in India by Rs 14,000 per tonne. This has affected construction, auto-parts and bicycle industries.

To save the domestic steel consuming industries, PM Narendra Modi has been urged to intervene and ban the export of iron ore, withdraw duties and customs on import of steel and impose a 10 per cent export duty.

Talking to The New Indian Express, president of the All Industries and Trade Forum, Badish Jindal said, "Fifteen days back, steel ingot prices were Rs 47,000 per tonne. Today, it is Rs 61,000 per tonne. It's almost a 25 per cent rise. Due to this, steel-consuming industries have suffered losses of Rs 50,000 crore."

"On Monday, we wrote to the PM demanding ban on export of iron ore, withdrawal of all duties and customs from import of any kind of steel and a 10 per cent export duty on steel and steel products to save the domestic industry. Otherwise, the industry will close down," he added.

Jindal added that the state owned steel companies have also increased their rates by Rs 5,000 to Rs 8,000 per tonne from March 1. "From Rs 54,000, it has gone over Rs 60,000. Indian steel companies have started exporting iron ore to European countries to make profits because Europe gets most of it from Russia 
and Ukraine," Jindal said.

He said that last year, 105 million tonnes of steel was produced in India, 4.50 million was imported, while 11 million was exported. "The stock of all steel companies in Punjab have almost dried up. Per month, four lakh tonnes of primary steel material used to come to the state. Besides, Punjab manufactured 15 lakh tonnes of steel in the 300 steel furnaces and rolling mills in the state per month," he said.