Major steel producers agreed for a partial roll back on the price rise carried out by them in February 2008, by Rs.1000/- per tonne for TMT and rounds and Rs.500/- per tonne for other steel products, to be effective immediately. This was done in response to appeal made by Minister of Steel, Shri Ram Vilas Paswan. The steel producers also agreed to the appeal of the Honourable Minister to maintain their price line.
Minister of Steel conveyed the concern of his Government regarding the impact of sudden price hike in steel commodities carried out by the steel producers in the last two months period. He stated that the price hike, apart from hitting the common man due to its cascading effect on inflation, would also affect many of the downstream consumer industries such as small and medium manufacturers and construction sectors. The steel industry also expressed its concern over the rising input costs due to steep hike in the prices of iron ore, coking coal, metcoke, ferro alloys and cost of transportation.
Concerned with the recent price hike in steel commodities, Shri Ram Vilas Paswan, Minister of Steel convened a meeting with the CEO's of major steel producers here today. The meeting was attended by SAIL, RINL, Tata Steel, Essar Steel, JSW Steel, Jindal Steel & Power and Ispat Industries Limited.
A preliminary discussion with these major steel producers had already taken place in a meeting under the Chairmanship of Steel Secretary on 12.08.2008, to discuss the issues concerning steel price.
Minister of Steel thanked the Indian steel industry for responding to the request of the Government in the interest of the nation. He also assured the Indian steel industry regarding the commitment of the Government in initiating suitable policy directives as well as facilitating the growth of the steel sector as a whole so as to augment the supply side in order to bridge the demand-supply gap and maintain a stable price line.