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Our Bureau

New Delhi, Aug. 22 Turning the argument forwarded by the steel industry head on, the Government on Friday asked domestic steel manufacturers to cut prices in line with the falling trend in global steel prices.

All along the steel industry had been citing rising global prices as one of the major reason, apart from rising input costs, for increasing prices in the domestic market.

“Global steel prices are softening and if the trend continues, it calls for a reduction in domestic prices,” the Steel Secretary, Mr P. K. Rastogi, told reporters here today.

Echoing the Government view, Steel Authority of India Ltd (SAIL) Chairman, Mr S. K. Roongta, said that the gap between domestic and international prices is coming down and if it narrows down further, SAIL may consider a downward revision of prices.

“In the last four-six weeks global prices have softened by around $100-150 a tonne,” he said.

Private sector steel producers, who have been holding the price line for almost four months now, however, are non-committal.

“If we are not allowed to increase prices when international prices go up is it fair to tell us to cut prices when international prices come down. But if imports become cheaper we will have no options,” said an industry official requesting anonymity.

Meanwhile the Government has initiated efforts to mediate between iron ore miners and steel producers to reach into long-term supply arrangements at negotiated prices.

The first meeting between the iron ore miners and the steel makers was held in Bangalore today which was attended by senior representatives from the Ministry of steel.

Sources said that the meeting remained inconclusive and another meeting is scheduled to be held in Kolkata next week.

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