MUMBAI: The forging industry has sought the intervention of the Prime Minister’s Office to save it from another crisis triggered by rapid growth. steel prices Which has given a tough fight to an area already ravaged by the pandemic.
The forging industry comprises 85 per cent of MSMEs and employs over 3 lakh people directly, with an equal number employed indirectly, making it the second largest in the world after China.
The Association of Indian Forging Industry said on Monday that steel prices have increased by 25-30 per cent in the last six months, putting the forging industry in grave danger.
in the last year alone, steel Prices have increased by Rs 16,950 a tonne, and the industry has now announced a further hike of Rs 6,000 from July, taking the overall price to Rs 22,450 a tonne.
In contrast, in the US, the price rose by only $175 a tonne or Rs 12,800 and in Europe it was €150 or Rs 12,900.
The association said that it has approached the Prime Minister’s Office (PMO) as representations from the ministries of MSME, heavy industries, steel, and commerce and industry have not received any concrete results.
While the industry was slowly recovering from the second wave of the pandemic, the sharp rise in steel prices has hit the sector badly, it said, as it has “resolved the forging and auto component industries from a major crisis”. Seeking Prime Minister’s intervention,” Association President Vikas Bajaj wrote in a letter to the PMO.
The forging industry is slowly returning to normalcy, thanks to a favorable export opportunity along with an increase in domestic demand from the auto sector.
The Chinese factor is leading to a large number of new inquiries coming from both North America and Europe. but rapid growth steel price That has been put on hold, he said.
Unless the government intervenes to stop this disproportionate and unfair steel price hike, the entire automobile, auto component and forging industry will become uncompetitive, he warned.
As of March 2020, the turnover of the forging industry stood at Rs 40,000 crore, of which exports contributed Rs 14,000 crore. For FY 2022, forging production is expected to grow by over 10 per cent and is likely to maintain that growth rate till FY204.
According to Yash Jinendra Munot, vice president of the association, steel is the primary raw material used in the forging industry, accounting for 60-65 per cent of the ex-factory value of forgings.
With the steep fall in steel prices, it is expected to rise to around 75 per cent. He said that with such increase in input cost, survival of this sector is now a challenge.
Accusing the steel cartel of playing, the association also requested the government to consider regulating steel prices.
The forging industry comprises 85 per cent of MSMEs and employs over 3 lakh people directly, with an equal number employed indirectly, making it the second largest in the world after China.
The Association of Indian Forging Industry said on Monday that steel prices have increased by 25-30 per cent in the last six months, putting the forging industry in grave danger.
in the last year alone, steel Prices have increased by Rs 16,950 a tonne, and the industry has now announced a further hike of Rs 6,000 from July, taking the overall price to Rs 22,450 a tonne.
In contrast, in the US, the price rose by only $175 a tonne or Rs 12,800 and in Europe it was €150 or Rs 12,900.
The association said that it has approached the Prime Minister’s Office (PMO) as representations from the ministries of MSME, heavy industries, steel, and commerce and industry have not received any concrete results.
While the industry was slowly recovering from the second wave of the pandemic, the sharp rise in steel prices has hit the sector badly, it said, as it has “resolved the forging and auto component industries from a major crisis”. Seeking Prime Minister’s intervention,” Association President Vikas Bajaj wrote in a letter to the PMO.
The forging industry is slowly returning to normalcy, thanks to a favorable export opportunity along with an increase in domestic demand from the auto sector.
The Chinese factor is leading to a large number of new inquiries coming from both North America and Europe. but rapid growth steel price That has been put on hold, he said.
Unless the government intervenes to stop this disproportionate and unfair steel price hike, the entire automobile, auto component and forging industry will become uncompetitive, he warned.
As of March 2020, the turnover of the forging industry stood at Rs 40,000 crore, of which exports contributed Rs 14,000 crore. For FY 2022, forging production is expected to grow by over 10 per cent and is likely to maintain that growth rate till FY204.
According to Yash Jinendra Munot, vice president of the association, steel is the primary raw material used in the forging industry, accounting for 60-65 per cent of the ex-factory value of forgings.
With the steep fall in steel prices, it is expected to rise to around 75 per cent. He said that with such increase in input cost, survival of this sector is now a challenge.
Accusing the steel cartel of playing, the association also requested the government to consider regulating steel prices.
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