During a conference held at the weekend in New Delhi, India's steel minister Ram Vilas Paswan said that he plans to meet domestic steelmakers within a week in order to ascertain the reasons behind their recent price hikes. The minister went on to warn that if the domestic steel producers continue to raise prices without justification, the ministry will have no option but to ask the government to introduce a price control mechanism.
The warning in question came just after major domestic steel manufacturers raised their steel prices substantially, citing rises in input costs.
Commenting on the recent increases, Mr. Paswan said that the domestic price hike is related to global prices but that the ministry will urge steel companies to moderate their prices. Mr. Paswan added, "The per capita steel consumption of 45 kg in India is much lower compared to that in most developed nations. Prices should be reasonable to increase our consumption."
Meanwhile, in order to offset rising input costs, Mr. Paswan has proposed to India's finance ministry that import duties on coking coal and scrap should be cut to zero, i.e. should be abolished. The ministry has also proposed a reduction in customs duty on iron ore from the current level of two percent for the next budget.
Currently, coking coal is subject to a duty of five percent while scrap has a duty of three percent.