Steel-Imports
Photo: Illustration only/www.sail.co.in

The Associated Chambers of Commerce and Industry of India has urged the Centre to reduce iron ore prices by about 25 per cent so that the domestic steel industry can become competitive.

“Asian economies like China, Japan and Korea have become more competitive and are exporting steel to India at throwaway prices due to drop in Platts Iron Ore Index thereby creating huge problem in India and posing threat to survival and sustainability of domestic steel industry,” the industry body said in a recent letter to Minister for Steel and Mines Minister Narendra Singh Tomar.

The letter claimed that National Mineral Development Corporation, the country’s leading iron ore producer, was charging 25 per cent higher rates as compared to other iron ore miners based in Odisha because of which the domestic steel industry had been adversely impacted. It said though the state run miner had reduced the prices of iron ore lump and fines from January 2015 in line with the prices prevailing in Odisha as well as the international market, the rates being charged for iron ore fines were still higher.

“Suppliers from Odisha are offering 63 per cent Fe iron ore fines at the rate of Rs.2,150 per ton in comparison to Rs.2,340 (together with Rs.351 for royalty) charged by NMDC which is higher by about Rs.500-600 per ton,” Assocham said.

The letter highlighted that international iron ore prices had been falling continuously with a significant fall in prices witnessed last month.

“The Platts Index in global market has fallen from $63 per ton to $54 per ton i.e. by Rs.550 per ton approximately i.e. from March 1, 2015, to March 26, 2015,” it said.

India’s steel industry is presently reeling under severe pressure due to sluggish economic recovery and various other factors.

The Ministry of Steel said last month that the Supreme Court decisions with regard to mining lease renewal in Goa and Odisha and cancellation of mining leases in Karnataka had created regional shortage of iron ore but there was sufficient iron ore production in the country to meet the current demand of the steel industry.
PRODUCTION AND REPORTED CONSUMPTION OF IRON ORE IN INDIA (MILLION TONNES)

Iron Ore
2011-12
2012-13
2013-14 (P)
2014-15 (P)
Up to December 2014
Production
168.58
136.62
152.43
91
Reported Consumption
100.57
103.40
110.50 (E)
NA

(P): Provisional (E): Estimated NA: Not Available
Source: Indian Bureau of Mines


Print pagePDF pageEmail page

3 COMMENTS

  1. […] Civil engineering companies provide civil engineers an surroundings in which they may be employed to…nesses have become on the list of most significant work suppliers in engineering sector. The infrastructural development of a place is mostly dependent on these civil engineering companies, and in nearly every single country of throughout the entire world, these firms perform greatly in regards to setting up the infrastructural base of their place. Practically all top rated civil engineering companies create a huge sum of earnings once a yr for their actions. […]

  2. […] Civil engineering companies give civil engineers an setting where they may be employed to apply thei… civil engineers. Civil engineering companies in more or significantly less each nation of the world are dependent for your infrastructural improvement of that nation and these organizations have out extremely in regards to development of the infrastructural basis of their country. Practically all leading civil engineering companies create a vast sum of income once a yr for their routines. […]

  3. […] Civil engineering companies present civil engineers an natural environment during which they may be …are becoming one among the biggest work suppliers in engineering sector. The infrastructural development of a country is largely dependent on these civil engineering companies, and in almost each place of worldwide, these firms execute greatly in regards to establishing the infrastructural base of their country. Like a result, a vast majority of the leading notch civil engineering companies rake in a very fantastic deal of earnings each year . Civil engineering companies offer an assortment of job to its personnel. Some of the jobs of a civil engineer involve: sketching out a foundation design, outlining the foundation of construction , perform cost budgeting on constructional enhancements and maintenance, and also reconstructing present structures. The task of a civil engineer within a civil engineering organization is mostly , to produce the layout of a buidling and also to allow laborers to complete the rest of the work, operating depending on the civil engineer's style and design. […]

LEAVE A REPLY

Please enter your comment!
Please enter your name here

*