Talking to ET, R Ok. Sharma, secretary normal, FIMI stated “The issue of unjustifiable continual increase in steel prices by primary steel companies is not at all linked to the effect of pandemic. In fact, due to Covid-19 pandemic the prices of steel should have been reduced by the steel companies. Considering the mining and metals sector as important providers, the federal government has permitted continuation of mining operations even throughout nation huge lockdown. As such nearly all of the steel firms have their very own captive iron ore mines which guarantee them to get uncooked materials at less expensive costs on a sustained foundation.
Due to synthetic and whopping enhance in costs of steel, it isn’t solely the MSMEs who acquired adversely affected but additionally different very important sectors like infrastructure and development initiatives and customary finish customers at massive have been severely hit. Further unsustainable costs are impeding the use of steel within the nation as a end result of which home per capita consumption stays at abysmal ranges of 74.3 kg which is one-third of the world common of 229 kg.
While a nation like China with a inhabitants of 140 crores and way more developed than India produces greater than 1000 million tonnes of crude steel (56% of the world manufacturing) with per capita consumption of 633 kg, on the opposite hand, India with a inhabitants of 130 crores produces about 100 million tonnes of crude steel. Similarly, Japan with a inhabitants of solely 30 crores produces near 100 million tonnes of crude steel with a per capita consumption of 498 kg.