Prodded by the Indian government to offer relief to small steel consumers, domestic steel companies are working on a scheme to offer volume-based discounts to micro, small, medium enterprises (MSME) below the threshold turnover level, industry sources said on Tuesday, December 14.
According to the sources, domestic steel producers are willing to offer volume-linked discounts ranging at INR 3,000-4,000/mt ($40-53/mt) to steel consuming industrial units below the annual turnover level of INR 1 billion ($13 million).
The steel producers are also considering offering discounts on prices for production of goods for exports, the sources said.
Late last week, India’s ministry of commerce and industry held a meeting with representatives of domestic steel companies and MSMEs on the issue of rising steel prices, with the latter seeking a reduction in prices and a ban on steel exports to cool down the market.
The steel producers as an initial response at the meeting had offered a reduction in base price of INR 1,500/mt ($20/mt), which was rejected by both the government and small industrial units as too small to make an impact on the production costs of small-scale industries.
$1= INR 75.77