The Hindu Business Line : Steelmakers asked to adopt stable pricing methods

(From left) The Union Minister for Steel, Chemicals and Fertilisers, Mr Ram Vilas Paswan; the Minister of State for Mines, Mr T. Subbarami Reddy; and the SAIL Chairman, Mr S.K. Roongta, at a summit on mining to steel making in the Capital on Wednesday. —

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New Delhi, March 5 Government has urged steel producers to abstain from increasing prices frequently and said that the Price Monitoring Committee’s views should be factored in while deciding on price hikes.

“Stable pricing should be adopted by the steel producers. They should pay due importance to views of the Price Monitoring Committee while deciding on prices of their products,” Union Minister for Steel, Chemicals and Fertilisers, Mr Ram Vilas Paswan, said while addressing a seminar on steel and mining sector organised by the Indian Chambers of Commerce here.

The Minister suggested that instead of raising prices too often, steel manufacturers could decide their prices in tandem with the price fluctuations of iron ore and coke in the global market. “My request to the industry would be to exercise restraint on any arbitrary price hike for steel products as it directly affects the common man,” he pointed out.

Iron ore export curbs

Mr Paswan also said that the exports on iron ore should be curtailed. “The Steel Ministry has always favoured that iron ore exports be allowed only after meeting the needs of the domestic steel makers to ensure value-addition within the country,” he added.

He assured that the Steel Ministry would continue to work for implementation of promised investments in the sector on the ground and pointed out that a high-level committee should be constituted for the purpose. The Minister also expressed concern over the growing demand-supply mismatch in the sector and said that there was an urgent need to augment steel production, failing which the country would become more dependent on imports.

Earlier, the Minister of State for Mines, Mr T. Subbarami Reddy, said that the Government favoured national value-addition of iron ore instead of it being State-specific.

Creating jobs

“In the coming National Mineral Policy, the Government has suggested that mineral-rich States would be given 18 months’ time to decide on the fate of mining applications. Also, the Government has envisaged an investment of about $2 billion and creating an additional five lakh jobs in the next five years once the said policy was implemented,” he added.

Mr Reddy opposed capping ore export, saying it could jeopardise the mining industry and lead to massive loss of employment. He also opposed NMDC’s export of ore saying it should instead try and extend raw material support to the Indian steel makers.

According to Chairman of Steel Authority of India Ltd, Mr S.K. Roongta, both the steel and mining industries should join hands for the development of each other.

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