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Indian government summons steel makers on price surge

It is reported that the Indian government has convened a meeting of steel producers next week to take stock of the rising price situation in the country.

Mr Atul Chaturvedi steel secretary told PTI that "We have convened a meeting on April 22 of all the steel producers. We want to understand what's happening on the prices front."

Asked if the government would ask steel makers not to hike prices further, he said that "Steel is a deregulated sector. We can't legally intervene and ask steel firms to freeze prices."

While the government is expected to try to persuade steel firms to rein in the prices of their products, the companies are contemplating a further hike in their rates. The steel secretary had earlier expressed hope that steel prices would settle down at the current level during this fiscal.

Steel firms have increased prices by around INR 6,000 a tonne since February. At present, steel prices in the domestic market are hovering in the range of INR 29,000 to INR 50,000 a tonne.

In 2008, the government had asked steel firms to refrain from hiking prices. Steel prices have been moving upwards on the back of rising costs for raw material like iron ore and coking coal.

(Sourced from PTI)