ISA says Required Quantities of
Steel Being made Available to SSIs
Check on rising input costs will help reduce prices
New Delhi, April 12, 2004 : Indian Steel Alliance (ISA)
today said that required quantities of flat steel products are being made available to
Small Scale Industries (SSIs) and it is committed to the well being of SSI sector. ISA
added that current prices of steel are an end result of rising input costs.
Commenting on the issue Mr. Moosa Raza, President, ISA said, “We understand the
concerns of SSIs and are ensuring adequate supplies of flat products to them. At the same
time SSIs must appreciate the fact that rise in steel prices is an inevitable fallout of
increasing input costs to the producers.”
The average input cost for the steel industry has climbed by over 300%. The international
price of coke has gone up by over 280% from $120/T in Dec 2002 to $465/T in Feb 2004. The
price of iron ore has appreciated more than 300% to $120/T in Feb 2004 from $28/T in Dec
2002. Similarly, freight charges have also gone up by over 400%.
Despite all these difficulties the ISA member companies have already reduced prices of
steel by Rs. 1500-2000 PMT after absorbing a major portion of increase in input cost. The
recent cut in excise duty on steel products (reduction from 16% to 8%, amounting to Rs
2000 approx.) has also passed on in full to customers. In addition to this ISA has
promised to hold current prices till June 2004 and review prices on a quarterly basis.
Added Mr. Raza, “These steps have been undertaken in the interest of all users,
including SSIs and are expected to benefit customers across all segments.”
ISA, after consultations with the Government and user groups, has already announced that
It will meet all domestic demand of hot rolled coils. Further, there
will be no export of HR coils at the cost of the local market.
For small consumers, it will meet aggregated demands for HR coils,
subject to minimum quantity depending upon the members. Such demands would be supplied to
the customers.
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