Steel Prices Will Come Down as Production Increases

Union Steel Minister, Ram Chandra Prasad Singh said, "Steel prices are expected to come down once production increases. The Ministry is looking to focus on ramping up steel production in the country so as to be able to meet the anticipated surge in demand moving forward."
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Published - Saturday, 28 Aug, 2021

Union Steel Minister, Ram Chandra Prasad Singh said, "Steel prices are expected to come down once production increases. The Ministry is looking to focus on ramping up steel production in the country so as to be able to meet the anticipated surge in demand moving forward." Steel, being a “deregulated sector”, market forces determine the rate. Prices of steel are cyclical in nature and depend on supply side issues. The government has, in the recent past, reduced customs duty on many items which are being imported to improve the supply side. “Steel prices are cyclical in nature and they are determined by market forces. Our objective is to ramp up production and when production increases prices will come down,” Singh said at the inauguration of MSTC’s new corporate building here on 27th August. “Raw material (iron ore) production was impacted due to Covid and hence prices were up. Exports of ore had also increased.....we are conscious about this and are watchful. Prices have come down a bit over the last two months,” he said. There is likely to be a steady demand for iron ore from the domestic steel industry due to the emphasis given by the government on growing the infrastructure, power, cement and other such sectors. India would have to double its iron ore capacity so as to be able to achieve the target of 300 million tonne of steel production by 2030 as envisaged in the NSP (National Steel Policy) 2017.