Association seeks measures to bring down steel prices

Staff Reporter

COIMBATORE: The Coimbatore Metal Merchants Association has sought measures to bring down the steel prices.

According to a release from the association, for 18 moths the steel prices were affordable to all industrial sectors.

However, the prices started going up since December 2009, for long and flat steel products.

Since then, the prices of long products have gone up by nearly Rs. 10,000 a tonne and for flat products by nearly Rs. 5,000 a tonne.

This is almost a 20 per cent increase.

The maximum rise in prices was in March 2010.

The public sector units have increased the prices steeply and this is affecting the small and medium-scale units.

Working capital

The working capital requirement also went up with the increase in raw material costs.

The steel segment will add to the increase in the inflation.

Some of the public sector companies had increased the prices three times in a month.

In this region, the construction, engineering, textile and SME sectors will be affected,it said,.

The government should take measures to ensure price stability.