Industry & Economy
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Steel
Steel ingot prices up 8 pc on strict transport vigil
Ambarish Mukherjee
New Delhi
,
Dec. 5
STEEL ingot prices have increased by more than 8 per cent during the last five days across markets in the North following stringent inspection by the State road transport department officials and strict implementation of the provisions of the Motor Vehicles Act.
The Act, among other provisions, stipulates overloading of trucks above the permitted axle load capacity as an offence punishable with financial penalty.
Steel ingots are primarily consumed by steel re-rollers for making thermo-mechanically treated (TMT) steel bars which form the basic structure for all construction activities. With ingot prices shooting up from around Rs 15,800 per tonne in the end of November to around Rs 17,200 within a span of less than a week, trade circles expect a sharp rise in TMT steel prices over the coming months.
The operators usually transport 15 tonnes and above per truck, which is higher than the permitted 10 tonnes. Since the beginning of this month, the State road transport inspectors are on a strict vigil across the borders of Uttar Pradesh, Haryana, Delhi, Himachal Pradesh, Punjab and Chhattisgarh.
Trade sources said that "even bribes are not working. These inspectors are imposing heavy penalties on every overloaded truck when they cross the State borders making operations uneconomic."
As a result, the sources said, that the supply of cheaper ingots from the numerous sponge iron units of Chhattisgarh has come to a halt following which supply in the market has reduced leading to price increases.
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