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The Engineering Export Promotion Council (EEPC) of India has raised concerns about a recent sharp rise in steel prices.
According to the council, this rise impacts India’s engineering exports that are facing challenging global markets in the face of another wave of Covid-19 pandemic in several major economies.
“Engineering exporters are deeply concerned over rising steel prices. The prices have increased from ₹35,000 per tonne to ₹42,000 in the past six months for a product like Hot Rolled Coil, an essential raw material for the engineering industry,” said Chairman of EEPC India, Mahesh Desai.
Also read: Engineering goods exporters flag shortage of shipping containers, high freight rates
Desai said that prices of other essential metals have also been rising disproportionate to the end-product prices that can be realised in the international markets, becoming more and more tough. This is because major markets of Europe are weathering a second wave of coronavirus while the US is reeling from the deadly impact of the pandemic.
He appealed to the Centre to impress upon the large steel manufacturers to keep prices in check.
“We urge the government to take up these issues to stabilise raw material prices as our member-exporters are facing deleterious impact,” he said.
According to EEPC, India’s engineering exports have declined by 14 per cent from $44.43 billion during April-October 2019-20 to $38.14 billion in the same period of the current financial year.
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