Steel ind to maintain price; wants govt to check input cost

The steel industry has assured the government that it would hold prices for the time being, although a self-imposed three-month freeze on rates expired yesterday.     

Steel producers, in return, sought policy makers' intervention to check rising input costs.      

"The steel industry has told me that it will not increase the prices for the time being," Steel Secretary P K Rastogi said today, while addressing the second India Steel Summit organised by industry chamber Assocham here.     

The steel industry has been holding the prices since May 7 in a bid to help government contain inflation, which has galloped to 12.01 per cent as of July 26.     

The secretary said the government's concern is to keep steel prices under control, for which it can initiate suitable measures.     

"When such a situation (rise in steel prices) arises, government will come up with measures to keep the prices under check," Rastogi said.     

Acknowledging the steel industry's concern about the spike in input costs on account of increase in iron ore and coking coal prices, the secretary said a meeting of domestic iron ore miners and steel producers would be convened soon to sort out the issues.     

"I met the secretary of mines yesterday. He has agreed on certain issues and showed interest to meet you (steel producers)," Rastogi said.     

In the proposed meeting, the government is likely to persuade iron ore miners to sell the raw material at reasonable rates to the steel industry, besides entering into long-term contracts with them for supply of the ore.