The domestic forging industry termed the increase in steel prices as unjustified and said such hikes can push the equipment manufacturers into losses.
Mr Vidyashankar Krishnan president of Association of Indian Forging Industry told PTI that "We have to combat the Goliaths (steel makers). The hikes in steel prices are unfair. If such upward trend continues forging companies will go into losses.”
Cashing in on the rising demand and firming global trend, domestic steel firms like SAIL and TATA Steel have increased the prices of some of their products by up to INR 2,000 in past two months, which Mr Krishnan says has hit the forging industry hard.
The association said global competitiveness of the domestic industry is under threat and exports would be badly hit. Mr Krishnan said that "Our exports is pegged to be down by 40% of last year's shipments if such hike continues to increase.”
Domestic forging companies exported their products worth INR 3,000 crore during the last fiscal. Mr Krishnan said that "Under the current scenario, growth would take a back seat and struggle for survival would come as the first priority.”
AIFI added the industry provides direct employment to about 200,000 people.
(Sourced from http://www.steelguru.com/news/index/2009/09/12/MTExMzUw/Hike_in_steel_prices_in_India_unjustified_-_AIFI.html)
Friday, September 11, 2009
Hike in steel prices in India unjustified - AIFI
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