A steel producers' body has written to Prime Minister Narendra Modi explaining that the metal price hike was because of surging raw material costs and demanded a ban on iron ore export for six months, an official said on Tuesday.
The Indian Steel Association informed the PMO about the price increase of the metal after Union road transport and highways minister Nitin Gadkari wrote a letter to the Prime Minister on the impact of rising steel prices on infrastructure projects.
“We would like to highlight some of the very serious and compelling reasons which have left the steel industry with no recourse but to raise prices of steel from time to time,” the ISA said in its letter to the PMO.
Hot-rolled coil prices have increased by 46 per cent to Rs 52,000 per tonne in November compared with Rs 37,400 per tonne in July this year. Rebar TMT, which is used in the housing and construction sectors, had touched Rs 50,000 a tonne, industry sources said.
The ISA mentioned about the issues related to iron ore, price rise of raw materials, shortage in global steel supply and lower capacity utilisation due to Covid-induced disruptions.
