No major hike in steel prices likely: Naveen Jindal
The Hindu Business Line, June 4, 2009, Page 15
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“Domestic steel demand and consumption is growing at a faster pace than anticipated and since input costs are gradually coming down steel makers should apply a break on hike of steel prices.”
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Our Bureau, New Delhi
Mr Naveen Jindal, Member of Parliament and the Vice-Chairman and Managing Director of Jindal Steel and Power Ltd (JSPL), said on Wednesday that although the industry is not insulated from international steel prices, no major hike within the country was expected in the near future.
Mr Jindal was speaking on the sidelines of a ‘Young Parliamentarians’ meet organised by the Associated Chambers of Commerce and Industry (Assocham).
“I see good demand for steel because bridges, roads, etc. A lot of things have to be built. Domestic steel demand and consumption is growing at a faster pace than anticipated and since input costs are gradually coming down steel makers should apply a break on hike of steel prices,” said Mr Jindal.
Infrastructure needs
He added that the massive infrastructure needs of the country, such as the building of ports and a comprehensive road network, was an important aspect that the upcoming Budget will have to address. “If given a chance, I shall debate on these topics in Parliament and make sure that these concerns are addressed,” he said.
The Lok Sabha MP from Kurukshetra, Harayana, said that power is another sector where the country needs investment. New plants are needed, while alternative sources of power need to be developed, he said.
Dr Swati Piramal, Senior Vice-President, Assocham, said with the support of young MPs, a new Drug Policy should be announced to enable the pharmaceutical industry to manufacture medicines at affordable prices, especially for people below the poverty line. The meeting was attended by MPs Mr Rajagopal Lagadapatti, Mr Kirti Azad, Mr Manish Tewari, Mr Deepender Hooda, among others.
Rising steel prices
However, the Federation of Industries of India (FII) has expressed concern over the rising steel prices, particularly of Hot Rolled (HR) steel, while worldwide prices are falling. According to a statement issued by FII, on May 10, the prices of HR coil were raised by Rs 600 a tonne by Steel Authority of India Ltd and again on June 1 by Rs 750/tonne. The domestic price for the same, as charged by SAIL, is between Rs 28,500 and Rs 29,300 a tonne. The international price, however, is Rs 18,600-Rs 20,800/tonne. “The entire steel consuming industries are astonished at the unreasonable price hike by SAIL,” said the FII statement.
“There is an acute shortage of HR coil in the country which is being created artificially through an informal pricing and distribution cartel of the steel producers for HR products,” said the FII statement.
The Hindu Business Line, June 4, 2009, Page 15
--------------------------------------------------------------------------------
“Domestic steel demand and consumption is growing at a faster pace than anticipated and since input costs are gradually coming down steel makers should apply a break on hike of steel prices.”
--------------------------------------------------------------------------------
Our Bureau, New Delhi
Mr Naveen Jindal, Member of Parliament and the Vice-Chairman and Managing Director of Jindal Steel and Power Ltd (JSPL), said on Wednesday that although the industry is not insulated from international steel prices, no major hike within the country was expected in the near future.
Mr Jindal was speaking on the sidelines of a ‘Young Parliamentarians’ meet organised by the Associated Chambers of Commerce and Industry (Assocham).
“I see good demand for steel because bridges, roads, etc. A lot of things have to be built. Domestic steel demand and consumption is growing at a faster pace than anticipated and since input costs are gradually coming down steel makers should apply a break on hike of steel prices,” said Mr Jindal.
Infrastructure needs
He added that the massive infrastructure needs of the country, such as the building of ports and a comprehensive road network, was an important aspect that the upcoming Budget will have to address. “If given a chance, I shall debate on these topics in Parliament and make sure that these concerns are addressed,” he said.
The Lok Sabha MP from Kurukshetra, Harayana, said that power is another sector where the country needs investment. New plants are needed, while alternative sources of power need to be developed, he said.
Dr Swati Piramal, Senior Vice-President, Assocham, said with the support of young MPs, a new Drug Policy should be announced to enable the pharmaceutical industry to manufacture medicines at affordable prices, especially for people below the poverty line. The meeting was attended by MPs Mr Rajagopal Lagadapatti, Mr Kirti Azad, Mr Manish Tewari, Mr Deepender Hooda, among others.
Rising steel prices
However, the Federation of Industries of India (FII) has expressed concern over the rising steel prices, particularly of Hot Rolled (HR) steel, while worldwide prices are falling. According to a statement issued by FII, on May 10, the prices of HR coil were raised by Rs 600 a tonne by Steel Authority of India Ltd and again on June 1 by Rs 750/tonne. The domestic price for the same, as charged by SAIL, is between Rs 28,500 and Rs 29,300 a tonne. The international price, however, is Rs 18,600-Rs 20,800/tonne. “The entire steel consuming industries are astonished at the unreasonable price hike by SAIL,” said the FII statement.
“There is an acute shortage of HR coil in the country which is being created artificially through an informal pricing and distribution cartel of the steel producers for HR products,” said the FII statement.
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