Pipe makers body seeks govt intervention to regulate soaring steel prices
Steel

Pipe makers body seeks govt intervention to regulate soaring steel prices

Industry body Indian Pipe Manufacturers Association (IPMA) has requested government intervention to regulate steel prices, which are trading at an all time high in the country.

According to the association, the steel prices increased more than 60% in the last 10 months and are expected to increase further by Rs 4000/ a tonne in the upcoming days.

Due to this, it has made survival for downstream enterprises difficult, which are entirely dependent on steel mills for their raw material needs.

In a letter to Minister of Steel Dharmendra Pradhan, IPMA has even asked for a temporary prohibition on its export, a move that will limit steel players from distributing their product to the international markets.

The letter also said that the MSMEs and Pipe producers are striving for quite some time because of increased prices and shortage of steel in the domestic market.

The association said it marked a copy of the letter to the Prime Minister, Narendra Modi, and several other significant officials to notify them about this issue.

IMPA told the media that numerous industries have shut down and many more are on the verge of closure. Gas, Oil, and main projects are held accountable for managing economic growth and need high-quality steel.

Due to the increase in the cost of raw materials, the value of infrastructure design has moved up by more than 100-150%, posing a tremendous risk to the infrastructure vision of our nation.

A spokesperson of the IPMA also said that the steel prices have been highly volatile for the last 7-8 months.

In a few cases like the API grades (Oil & Gas lines), prices have increased above 100-125% compared to a few months back.

The commercial grade has moved from around Rs 37,500 per million tonne to current levels near Rs 70,000 and yet on the rise. And this has put several pipe laying and construction industries backwards.

Steel is trading at an all-time high in the domestic market.

In May 2021, Indian steel players shot up costs of cold rolled coil (CRC) by Rs 4,500 to Rs 80,000 per tonne and hot rolled coil (HRC) by Rs 4,000 to Rs 67,000 per tonne, whereas, in US, the cost is around Rs 109,000 per tonne, and in Europe, it is around Rs 89,000 per tonne.

Image Source


Also read: Steel prices: In a year, HRC up 40%, TMT 30%; Consumption to grow 10%

Also read: High Price Point: Where is the future of steel industry headed?

Industry body Indian Pipe Manufacturers Association (IPMA) has requested government intervention to regulate steel prices, which are trading at an all time high in the country. According to the association, the steel prices increased more than 60% in the last 10 months and are expected to increase further by Rs 4000/ a tonne in the upcoming days. Due to this, it has made survival for downstream enterprises difficult, which are entirely dependent on steel mills for their raw material needs. In a letter to Minister of Steel Dharmendra Pradhan, IPMA has even asked for a temporary prohibition on its export, a move that will limit steel players from distributing their product to the international markets. The letter also said that the MSMEs and Pipe producers are striving for quite some time because of increased prices and shortage of steel in the domestic market. The association said it marked a copy of the letter to the Prime Minister, Narendra Modi, and several other significant officials to notify them about this issue. IMPA told the media that numerous industries have shut down and many more are on the verge of closure. Gas, Oil, and main projects are held accountable for managing economic growth and need high-quality steel. Due to the increase in the cost of raw materials, the value of infrastructure design has moved up by more than 100-150%, posing a tremendous risk to the infrastructure vision of our nation. A spokesperson of the IPMA also said that the steel prices have been highly volatile for the last 7-8 months. In a few cases like the API grades (Oil & Gas lines), prices have increased above 100-125% compared to a few months back. The commercial grade has moved from around Rs 37,500 per million tonne to current levels near Rs 70,000 and yet on the rise. And this has put several pipe laying and construction industries backwards. Steel is trading at an all-time high in the domestic market. In May 2021, Indian steel players shot up costs of cold rolled coil (CRC) by Rs 4,500 to Rs 80,000 per tonne and hot rolled coil (HRC) by Rs 4,000 to Rs 67,000 per tonne, whereas, in US, the cost is around Rs 109,000 per tonne, and in Europe, it is around Rs 89,000 per tonne. Image SourceAlso read: Steel prices: In a year, HRC up 40%, TMT 30%; Consumption to grow 10% Also read: High Price Point: Where is the future of steel industry headed?

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