The Indian government has urged domestic steel producers to offer relief to industrial consumers categorized as micro, small and medium enterprises (MSME) through the review of benchmark hot rolled coil (HRC) prices and discounts, a government official said on Friday, December 10.
The official said that the issue of offering discounts and relief to MSME steel consumers was discussed at a meeting between minister of commerce and industry, Piyush Goyal, and representatives of steel producers on Thursday, December 9.
At the meeting, the steel producers defended high prices, claiming this reflected the 70 percent increase in energy costs and the price of high-grade Australian coking coal which increased from $110-120/mt FOB in April 2021 to $410/mt FOB in November.
However, Mr. Goyal appealed to steel producers to consider assistance in terms of pricing for supplies to MSME units and to enable the latter to overcome the challenges of the pandemic.
An all-India representative body of MSME units has sought that the government allow imports of all steel categories based on cost and quality parameters. Earlier, the body had made a representation to the government seeking a ban on exports of all finished and semis to cool down domestic prices.