The sharp rise in domestic steel prices is putting downstream MSMEs under pressure, raising production costs and affecting margins and export competitiveness, prompting the Chamber of Industrial and Commercial Undertakings (CICU) to seek intervention from the Centre.
Citing a recent assessment by Motilal Oswal Financial Services, CICU said hot-rolled coil (HRC) prices had risen 7% month-on-month to around ₹62,000 per tonne in September, a four-year high. Cold-rolled coil (CRC) prices increased 8% to nearly ₹70,500 per tonne, while rebar prices rose to about ₹56,800 per tonne from ₹48,850 in June.
CICU president Upkar Singh Ahuja said the rise was particularly concerning for MSMEs operating on tight margins and with limited ability to pass higher raw-material costs on to customers.
“The present increase directly affects product costing, working capital, order commitments and export competitiveness,” Ahuja said.
CICU senior vice-president JS Bhogal said the higher steel costs were adding to the burden on engineering, auto-component, fastener, bicycle, hand-tool, machinery and fabrication units.
He urged Union minister Piyush Goyal to consider practical relief measures for steel-consuming MSMEs, saying manufacturers should not be forced to choose between accepting losses and losing orders.
{{/usCountry}}He urged Union minister Piyush Goyal to consider practical relief measures for steel-consuming MSMEs, saying manufacturers should not be forced to choose between accepting losses and losing orders.
{{/usCountry}}CICU has sought joint intervention by the ministries of Commerce and Industry and Steel to monitor steel prices and availability, assess the impact on downstream industries, examine appropriate trade-policy measures and ensure adequate availability of essential steel grades.
The chamber said it was not seeking artificial price controls but a balanced and predictable market.