In the wake of high steel prices in the domestic market, steel consumers and their associations have written to Prime Minister Narendra Modi seeking policy intervention from the government to prevent steel producers from exporting steel below domestic prices.
“The domestic steel should be supplied to the downstream industry at a price which is at par with international prices,” said the Federation of Industry and Commerce of North Eastern Region. It also demanded that “steel should be supplied to the downstream industry at a price that must at least be equal to the price, at which the domestic steel mills export the metal.”
Steel consumers associations have also strongly opposed the call from primary manufacturers to impose a 25 per cent safeguard duty, saying the move will only increase prices and impact the economy.
Earlier, Engineering Export Promotion Council (EEPC) India had also raised its concerns over the high domestic steel prices compared to international prices, saying that it was leading to a non-competitive scenario in downstream engineering exports.
“It is critical that our exporters get steel at international prices. If we get steel at global prices, our exports will have tremendous buoyancy and we will be able to weather the protectionism with full force,” EEPC India vice-chairman Arun Garodia said in the backdrop of the withdrawal of US preferential duty treatment.