The Hindu Business Line : Primary steel makers seek Ministry help to curb imports

Earlier, when prices were moving up, secondary steel producers, who are the consumers of hot rolled (HR) steel, pleaded with the Steel Ministry to mediate with primary producers who manufacture HR steel, so that domestic prices remain under control.

Now, with falling international prices coupled with rising imports, it is the turn of the primary producers, who have written to the Ministry and asked to convene a meeting between producers and consumers to ensure that domestic consumers buy from domestic steel producers, official sources said.

Excess supply

The primary producers, apart from seeking a meeting, have also told the Ministry that since prices are falling and there is an excess supply in the domestic market, the Duty Entitlement Pass Book scheme, which had been suspended earlier for steel and certain other commodities under an excess demand situation, should be revived for steel exports to keep inventories from piling up.

The primary producers have also sought imposition of a 5 per cent import duty on steel. Currently steel imports are duty-free.

Cheap imports

According to senior industry sources, “It is now a war of nerves between the primary and secondary steel manufacturers.

Though no imports have taken place below the price range of $810-825 a tonne (f.o.b.), some importers are managing to get quotes from certain steel makers based in the CIS countries at $750 a tonne (f.o.b.) and asking the domestic producers to match the prices.”

According to official sources, the domestic producers and consumers would first meet informally and if they are unable sort out the issue, the Ministry would then convene a meeting sometime next week.

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