 Press Release
Inexplicable Rise in Steel Prices
12th September 2003
Consequent to the representation made by CIDC on 29th August 2003 to the Hon'ble Steel Ministry, Shri B K Tripathi on the occasion of 17th Meeting of "National Steel Consumers Council" regarding inexplicable rise in steel prices and its detrimental effect on National Economy a number of steps has been taken by the Govt. and Ministry of Steel to arrest the rising prices.
Construction activity alone accounts for 40% of total steel consumption and is a major activity for employment generation. The construction cost, which has been witnessing rapid increase, has been fueled primarily due to the unabated hike in steel prices and therefore the Construction Industry is seeking measures from the Govt. for remedial action. The Construction Cost Indices being computed by CIDC, which indicate trends in construction cost variations for 11 Sectors of the economy and six cities, have shown an average rise of 0.6% in the Aug 2003 period.
Stepping in of SEBI and Ministry of Steel to insure compliance of steel manufacturers of volatility discussions is one such initiative in the right direction. Further the refusal by the Govt. to levy antidumping duty on certain steel products is also a positive step to arrest the further rise in steel prices.
It is hoped that the measures taken by the Govt. would provide the much needed relief to the Construction Industry.
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