The Hindu Business Line : Steel traders flay RINL for price hike

Visakhapatnam, March 17 The steel traders here have blamed Rashtriya Ispat Nigam Ltd (RINL) for the huge hike in steel prices and also for “artificial scarcity” in the local market created by the “faulty policies” of the management, causing irreparable loss and inconvenience to the public as well as the dealers.

At a press meet here recently, the traders said that the steel plant authorities were totally indifferent to the pleas of the local dealers to cater to the needs of the local market.

‘Unjustified’

Mr V. Gopala Krishna Prasad, Chairman of Velagapudi Steels, said that a steep hike of Rs 25,000 or more per tonne in a span of a month or so could not be justified on any ground. “Even allowing for hike in costs of raw material such as iron ore and coking coal, the cost of production for RINL should not be more than Rs 18,000-20,000 per tonne (exclusive of taxes). But the ruling prices for the trade are in the range of Rs 40,000-50,000 for different products,” he said.

He said the steel plant authorities were totally unmindful of the needs of the local market.

‘Projects hit’

Mr K.V. Bhaskar, Director of Vizag Profiles Lt, said, “The Andhra Pradesh Government has taken up irrigation projects and housing projects in a big way. All of them are badly hit by the steep hike and the scarcity. In fact, they have come to a standstill. The market simply cannot absorb such a huge hike.”

According to Mr V.V Krishna Rao, another Director of Vizag Profiles, the Andhra Pradesh region would require roughly 2.5 million tonnes, but the steel plant was selling less than a million tonnes in the region. E-auctions were being conducted even for small quantities, resulting in hardship to local dealers.

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