Rajkot: Steel prices that skyrocket have been badly violating the profit margins of domestic companies belonging to the manufacturing and pipe manufacturing industry.
Price increases have been triggered by high exports.
Indian steel producers export around 50% of their products because of good demand in the US and China.
According to industrial players, prices have increased by 60% in the past year and now they want a ban on export to save domestic small and medium-sized industries.
Kutch Pipe Manufacturer Facing Problems due to continuous rising steel prices.
Nimish Phadke, President Director of the Federation of Kikch Industrial Association (Fokia), said that export volume needs to be reconsidered.
“In the financial year the main steel supplier has exported 50% of their production which results in deficiencies for domestic consumers.
We ask the government to ban exports for six months for the survival of small domestic players.
This is the steepest price since 2008,” said Phadke , The source said that from the RS 36,500 per ton in July 2020 steel prices had been enlarged to RS 60,000 at this time.
With steel into its main raw material, the Rajkot engineering industry bears the burden of a steep price increase.
Brijesh Dudhagara, former Vice President of the Rajkot Engineering Association, said that profit margins had dropped drastically due to rising steel prices.
“We cannot bear high costs because at this time we are not in condition to restore proportional prices from our customers.
I pay Rs 20 per kg higher for steel but I only recover Rs 11 of my customers because he is not ready to pay more.
Price Some other raw materials have also consumed our benefits, “said Dudhagara.
Demand for engineering products in the domestic market decreased by 25-30% due to price increases.