Deeply concerned over steel price rise due to Covid-19: EEPC India

A recent sharp rise in steel

prices has a "crippling impact" on the country's engineering exports which are facing the most challenging global markets in the face of another wave of COVID-19 pandemic in several major economies, EEPC India has said.

India's engineering exports have declined by 14 per cent in April-October 2020-21 period, the Engineering Export Promotion Council of India (EEPC India) said on Wednesday.

"Engineering exporters are deeply concerned over rising steel prices. The prices have increased from Rs 35,000 per tonne to Rs 42,000 per tonne in the past six months for a product like hot rolled coil, an essential raw material for engineering industry," EEPC India chairman Mahesh Desai said in a statement.

He said prices of other essential metals have also been rising disproportionate to the end-product prices which can be realised in the international markets, becoming more and more tough.

The Zinc prices have shot up from Rs 170 per kg to Rs 220 per kg and freight charges have almost doubled.

"Engineering exporters face severe headwind and this is impacting their exports. Exporters also face scarcity of steel," Desai said.

Major markets of Europe are weathering a second wave of coronavirus while the US is reeling from the deadly impact of the pandemic.

Desai appealed for Union Commerce and Industry Minister Piyush Goyal's intervention and impress upon the large steel manufacturers to keep prices in check.

"We urge the government to take up these issues to stabilise raw material prices as our member-exporters are facing deleterious impact", EEPC India said.

India's engineering exports have declined by 14 per cent from USD 44.43 billion during April-October 2019-20 to USD 38.14 billion in the same period of the current financial year as the global headwinds continue to blow severely.