Ludhiana MSMEs fear rise in steel price over govt's decision to make ISI marking compulsory on all kind of steel

New Delhi, Aug 25 (KNN) Ludhiana industry fears rise in steel prices as the government has decided to make ISI mark mandatory for every kind of steel.

Earlier it was mandatory to have ISI mark on the final stage steel used for construction purposes but now steel used for industrial purposes, ingots etc. have also been included under the ISI mark.

According to a media report, with this, no foreign company will be able to export its material to India without ISI certification and even Indian companies without ISI certification will not be able to sell steel here.

In this regard, Federation of Punjab Small Industries Association (FOPSIA), President, Badish Jindal said that after the quality control order issued, all billets, ingots, TMT had to be manufactured and sold with ISI mark only.

So, if rolling mills were found to be using billets without ISI mark, they would have to confiscate the bars in scrap, he added.

He further said these orders would make only a few companies operational in the market and they would fix the price according to their own wish.

He noted “the effect has already starting showing in the market as the price of steel has gone up by Rs 500. From the past one month, the price of steel is on the increase. Presently, the steel is priced at Rs 38,000 per metric tonne while last month the price was Rs 35,000 per metric tonne.”

The steel prices will go up which will lead to increase in production price and cost of end product too, Jindal pointed.

 Besides, he said “the foreign companies and local companies applying for ISI certification will have to wait for at least five to six months to get the same. During this time, the prices will increase as only a few companies with ISI certification will be selling the products.”