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| Hike in steel prices unjustified: AIFI |
| Press Trust of India / New Delhi Sep 10, 2009, 21:07 IST |
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The domestic forging industry today termed the increase in steel prices as "unjustified" and said such hikes can push the equipment manufacturers into losses.
"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," Association of Indian Forging Industry (AIFI) President Vidyashankar Krishnan told PTI.
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 Rs 2,000 in past two months, which 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.
"Our exports is pegged to be down by 40 per cent of last year's shipments if such hike continues to increase," he added.
Domestic forging companies exported their products worth Rs 3,000 crore during the last fiscal.
"Under the current scenario, growth would take a back seat and struggle for survival would come as the first priority," he added.
AIFI added the industry provides direct employment to about 2,00,000 people.
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