Policy for determining scrap rates is in huge mess: CICU

Ludhiana, Jun 10 (KNN) Chamber of Industrial & Commercial Undertakings (CICU) on Thursday said that the policy for determining the scrap rates is in huge mess.

The statement came after a delegation from Ludhiana Scrap Traders Association (LSTA) led by its President, S Jarnail Singh Bunty met CICU President, S Upkar Singh Ahuja and shared scrap traders' grievances with him.

''Industry is passing through a crucial time because of COVID-19 and increase in raw material price. Five large steel production houses made a huge profit,'' CICU said in a statement.

The CICU further said that local furnaces and steel rolling mills are exploiting the industry as they purchase the scrap at low prices and sell it at high prices such as steel bars.

''There is a price difference at the time of sale of various grades of steel like MS Steel, En8, EN353, E19 etc. Whereas steel makers while buying scrap pay less price. Price difference is around Rs 1900 Per MT. This has started since post COVID, earlier there was one steel price for calculation,'' they added.

Terming it a manipulation by brokers, steel furnaces and steel rolling mills, Ludhiana Scrap Traders Association has declared full strike till June 13th, 2021 refraining from buying or selling scrap.

Meanwhile, CICU urged the local steel makers to support the industry in hard times and said that it will file a complaint to the Competition Commission of India (CCI).