Date:06/12/2004 URL: http://www.thehindubusinessline.com/2004/12/06/stories/2004120600360800.htm

Back Steel price regulation

Two major steel companies have announced yet another Rs 500-1,000 per tonne increase in the last three days, sending the already volatile steel prices on another upswing.

The situation is such that the Government is even contemplating setting up a steel regulatory body.

But it should not turn the regulator into price controller.

Price control only at the company level will not benefit the end user as most of the small and medium industries in the country are dependent on steel merchants in the local steel market, who further fuel a price hike rendering it inflexible to any reductions that the company may decide to introduce.

As the local steel market is still hit byshortages, hoarding and black-marketing, unless proper regulations are implemented at the last point of sale, it will serve no purpose.

Sushil Mehra

Bangalore

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