New Delhi: The government has rejected steel industryProposal to reduce prices by Rs 1,500 per tonne on many products small businesses and exporters and instead it has asked to improve the offer.
Commerce and Industry Minister’s meeting Piyush GoyalSteel Minister RCP Singh and MSME Minister Narayan Rane on Thursday demanded reduction in prices by Rs 4,000 per tonne from user industries such as auto components players, engineering goods makers and exporters. But the steel companies’ offer was for a lower cut, sources familiar with the deliberations told TOI.
One of the ministers is understood to have told industry that the offer was unacceptable as the deduction limit was too low and suggested that it should be rectified as an announcement would be made by the government soon. An industry source indicated that the price cut could be Rs 2,500-3,000 per tonne.
According to industry sources, the rate in December cold rolled strips It is estimated to be Rs 77,000-80,000 per tonne, while it is in the range of Rs 67,000-70,000 per tonne for hot rolled coil.
“These are essential for micro, small and medium enterprises (MSME) Billets, TMT bars and similar products from large steel producers are procured from secondary producers and the steel producers clarified that their commitment is not for longer products,” said a source.
Besides, steel companies, which have been raising prices from time to time and giving tough competition to MSMEs, are also likely to settle for monthly price adjustments. The original proposal was to opt for a quarterly revision but this was seen as too long.
Small businesses have complained that frequent price changes have hit them hard because they have often been unable to recover costs as prices have risen between the time they receive the order and when it is time to ship. gets ready for.
While MSMEs had been demanding government intervention for a long time, the government had chosen a hands-off approach till Thursday.
Industry sources said prices have eased in the last few weeks as exports have slowed down. Apart from this, iron ore prices have also come down during December.
Commerce and Industry Minister’s meeting Piyush GoyalSteel Minister RCP Singh and MSME Minister Narayan Rane on Thursday demanded reduction in prices by Rs 4,000 per tonne from user industries such as auto components players, engineering goods makers and exporters. But the steel companies’ offer was for a lower cut, sources familiar with the deliberations told TOI.
One of the ministers is understood to have told industry that the offer was unacceptable as the deduction limit was too low and suggested that it should be rectified as an announcement would be made by the government soon. An industry source indicated that the price cut could be Rs 2,500-3,000 per tonne.
According to industry sources, the rate in December cold rolled strips It is estimated to be Rs 77,000-80,000 per tonne, while it is in the range of Rs 67,000-70,000 per tonne for hot rolled coil.
“These are essential for micro, small and medium enterprises (MSME) Billets, TMT bars and similar products from large steel producers are procured from secondary producers and the steel producers clarified that their commitment is not for longer products,” said a source.
Besides, steel companies, which have been raising prices from time to time and giving tough competition to MSMEs, are also likely to settle for monthly price adjustments. The original proposal was to opt for a quarterly revision but this was seen as too long.
Small businesses have complained that frequent price changes have hit them hard because they have often been unable to recover costs as prices have risen between the time they receive the order and when it is time to ship. gets ready for.
While MSMEs had been demanding government intervention for a long time, the government had chosen a hands-off approach till Thursday.
Industry sources said prices have eased in the last few weeks as exports have slowed down. Apart from this, iron ore prices have also come down during December.
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