India rules out regulating steel prices
Sunday, 14 September 2008
NEW DELHI, Sep 13 (PTI): Ruling out any price band, the government yesterday said domestic steel prices should come down following the softening global trend.
"We do not fix steel prices, and do not favour any price mechanism for the same. The government would like to play a facilitatory role," Steel Secretary P K Rastogi said on the sidelines of CII Steel Tube summit adding the domestic steel prices should further come down on the falling global trend.
However, he said fiscal measures were taken few months back when export duties were levied on steel products to increase its availability in the domestic market.
He also said miners have agreed for a long-term contract for supplying iron ore to steel companies but the talks between the two parties have not concluded yet.
"They (iron ore producers) have agreed for a long-term agreement. The government had held talks between the miners and steel producers and will be meeting again. The talks are still on," he added.
The government is for a long-term arrangement between miners and steel producers so that iron ore is supplied at a reasonable price, so that the price of the final product comes down, he said.
Moreover, Rastogi said there is a need to import over three million tonnes of steel to meet the rising demand.
"In the present fiscal, steel demand has grown by 12 per cent, but the production grew only by 6 per cent. There is a demand- supply gap of 6 per cent which needs to be fulfilled by imports," he said.
At present, the domestic steel production is about 55 million tonnes.
The steel ministry has proposed a 5 per cent hike in export duty of iron ore-from 15 per cent at present to 20 per cent, he said and added talks on the matter are on.
Industry chamber Assocham last month on behalf of domestic steel firms had demanded a duty hike to 35 per cent to help increase domestic supplies and lower prices.
"We do not fix steel prices, and do not favour any price mechanism for the same. The government would like to play a facilitatory role," Steel Secretary P K Rastogi said on the sidelines of CII Steel Tube summit adding the domestic steel prices should further come down on the falling global trend.
However, he said fiscal measures were taken few months back when export duties were levied on steel products to increase its availability in the domestic market.
He also said miners have agreed for a long-term contract for supplying iron ore to steel companies but the talks between the two parties have not concluded yet.
"They (iron ore producers) have agreed for a long-term agreement. The government had held talks between the miners and steel producers and will be meeting again. The talks are still on," he added.
The government is for a long-term arrangement between miners and steel producers so that iron ore is supplied at a reasonable price, so that the price of the final product comes down, he said.
Moreover, Rastogi said there is a need to import over three million tonnes of steel to meet the rising demand.
"In the present fiscal, steel demand has grown by 12 per cent, but the production grew only by 6 per cent. There is a demand- supply gap of 6 per cent which needs to be fulfilled by imports," he said.
At present, the domestic steel production is about 55 million tonnes.
The steel ministry has proposed a 5 per cent hike in export duty of iron ore-from 15 per cent at present to 20 per cent, he said and added talks on the matter are on.
Industry chamber Assocham last month on behalf of domestic steel firms had demanded a duty hike to 35 per cent to help increase domestic supplies and lower prices.