The Association of Indian Forging Industry (AIFI) has expressed dismay at the recent appeal by Indian steel companies to increase the import duty on steel from 5 per cent to 15 per cent. “This helps them claim as usual that Indian steel prices are lower than the international market. If domestic steel prices are reasonable, why would anyone import the same? We have consistently said that domestic steel prices should be equivalent to ex-factory prices in China,” AIFI president Vidhyashankar Krishnan said in a statement.
AIFI has urged the government not to increase the import duty as it would lead to spiralling price rises. An increase in steel prices would render Indian auto component manufacturers uncompetitive, AIFI said.
“As it is, steel prices in India are higher than ex-factory prices internationally. This will lead to more job losses in the industry which is already reeling under falling demand,” Krishnan said, adding, “The steel industry has always claimed that prices in India are lower than international prices, when it is not so. Ex-factory prices in India have always been higher than ex-factory prices in most international markets. In addition, prices in India rose well before prices of steel in the international markets went up.”
AIFI said that the user industry, in particular, the forging industry, has struggled to keep pace with regular price increases. At each point of price increase, steel suppliers have stopped supplying steel even against purchase orders previously accepted by them, Krishnan alleged.
“Steel mills would not even supply steel against purchase orders accepted by them for deliveries well before the date of price increase, citing market conditions,” he said, demanding that steel prices be reduced to international levels or even lower so that Indian auto component manufacturers can regain export competitiveness.
The forging industry body said that in early 2008, when steel prices were on the rise, the industry had mooted a proposal to the Centre to bring in a regulatory mechanism to check price increases.
But this proposal was set aside on the plea that it was not in line with open market economy policies, AIFI members said.
Source: Business Standard
1 comment:
Game and execution vehicle fans are a few seconds ago starting to comprehend what both novice and expert racers have known for years...The actuality that fashioned wheels convey better press forging process execution boundaries on the track and are altogether more secure than cast wheels.
Post a Comment