New Delhi: The government has rejected the steel industry proposal to reduce prices on several products of 1,500 tons for small businesses and exporters and instead defaulting it to increase offers.
At the Trade Meeting and Minister of Industry Piyush Goyal, Steel Minister R CP Singh and Msme Narayan Rane on Thursday, the user industry such as automatic component players, engineering goods makers and exporters demanded that prices be lowered by Rs 4,000 tons.
But the offer from a steel company is for lower reduction, the source that is familiar with the deliberation to TOI.
One minister was studied to tell industry players that the offer was unacceptable because the reduction rate was too low and suggested that it must be increased as the announcement will be carried out by the government immediately.
Industrial sources indicate that price discounts may be with a tone of Rs 2,500-3,000 tons.
According to industrial sources, in December, the cold rolled strip rate is estimated at 77,000-80,000 per ton, while the heat roll coil is in the range of Rs 67,000-70,000 tons.
“It is necessary by micro, small and medium enterprises (MSMEs) from large steel producers as billets, TMT bars and similar products sourced from secondary producers and steel producers that explain that their commitment is not for old products,” said a source.
In addition, steel companies, which periodically raise prices and hit MSMEs hard, also tend to accept monthly price adjustments.
The original proposal is to choose a quarterly revision but it looks too long.
Small businesses have complained that the price changes that often occur have hit them because they often cannot recover costs because prices have soared between the time they get orders and when they are ready to be sent.
While MSMEs have demanded government intervention for a long time, the government has chosen to maintain a direct approach to Thursday.
Prices have been moderated in the past few weeks because exports have slowed, the word industry said.
In addition, the price of iron ore also fell during December.