Indian Steel Scenario and Impact:
End user Industry in India, especially The Micro, Small and Medium Enterprises have suffered a "HUGE SETBACK” due to Un reasonable Spike in the Steel Prices. Even after various complaints made to government by the different user associations but all the efforts made by associations were yielded no results and user industry was left alone to suffer the Pains, which resulted in shutdown of their manufacturing facility fully or partially. Apart from the rising prices of steel user industry has to face with lots of uncertainties like renegotiation of the agreed prices and uncertainty on wether Ordered material will be supplied on time. I believe user industry will take lot of time to overcome the pain and agony they have met during year 2021.
An International price rally attracted the attention of the Indian Steel manufacturers and during a calendar year an exports volume surged to 35-40% in terms of Volume. This price surge Internally assisted Indian Producers to maintain the High Prices for the Domestic customers.
Indian Steel Producers always attributed Higher Steel Prices due to the Higher input cost of Raw Materials mainly IOFines. Even though the spike in input costs of IOFines did impact the cost rise of Finished Steel but in real terms the Finished Steel Prices were any thing between 30-65%.A real Beneficiary of The Steel Scenario was the Steel Manufacturer’s making the "HUGE PROFITS”.
I Firmly Believe that their should be a HOLISTIC ALIGNMENT” between the Steel Producers and the USER INDUSTRY a backbone of the Nation, providing employment to the more than Five Crore Work force.