New Delhi, Aug 5 (KNN) Prices of steel products have increased by 9-21 per cent in three years, despite a significant drop in the prices of the two main raw material.

Placing the information in Parliament, the Minister of Steel Beni Prasad Verma said, the prices of steel products like hot rolled coil and thermo mechanically treated (TMT) bar have increased by 9.06 per cent and 21.24 per cent respectively between June 2010 and June 2013.

This increase in prices is due to rising cost of ‘other inputs’ in the production of steel products like freight, manpower and logistics etc., he said. 

In the first quarter of the current year, the crude steel production is 19.61 million tonnes.

In order to improve production, steel producing companies are advised to take necessary action in areas such as sell of surplus scrap, non-moving obsolete stores and spares.

They are advised to take necessary action like maximizing sell of coal chemicals, by-products and secondary steel.

Meanwhile Verma said, government has taken few steps to support the competitive production and capacity growth of the steel industry like import of critical raw materials such as coking coal, non-coking coal, scrap etc. are subject to zero or very low level of customs duty.

 

In order to encourage value addition and improve domestic iron ore availability, duty on export of iron ore has been increased to 30 per cent.

No case of cartelization in steel sector in the last three years has been reported, he said.  (KNN/GUNJ)