Business

Secondary steel-makers fall in line

NEW DELHI: Having succeeded in persuading the primary steel-makers to roll back prices to help rein in inflation, the Government on Wednesday managed to make the secondary producers fall in line and announce similar price cuts.

Following a meeting with representatives of this segment of manufacturers such as Bhushan Steel and National Steel here, Steel Secretary R.S. Pandey said: “The secondary steel producers have assured the Government that they will reduce prices of their flat products by Rs. 4,000 a tonne and maintain the new price line for the next three months.”

The decision by major secondary steel producers to reduce prices by an identical margin of Rs 4,000 a tonne on all flat products has come about irrespective of the fact that the Government is still studying the feasibility of withholding or lowering the duty on steel exports, as per the request of the primary producers.

In this regard, Mr. Pandey sought to make it clear that the primary steel-makers’ decision to cut prices was voluntary and unconditional as the Government had not given any assurance on changes in the export duty.

Mr. Pandey pointed out that the secondary steel producers, who now account for an output of about seven million tonnes, had also pledged to import raw materials, process them and export the finished products under the advance licensing scheme so as not to affect the domestic supply situation.

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