Secondary steel makers have been hit hard as their import bill for high melting steel scrap have jumped by 18 per cent in the wake of dollar appreciation since June this year.
There are about 700 induction and arc furnaces in the country which import about 7 lakh tonne of scrap every month to convert it into iron and steel.
Stating that current volatility in foreign exchange has come as “big threat” to the steel industry, participants said industry would have to make at least 20 per cent additional payment to its suppliers in the wake of rupee depreciation.
“The payment of scrap import which took place in June is getting due now. And we have to make Rs. 8 a dollar more to pay our import bill which will prove to be big loss for us,” said Mr Garg, president all India induction association.
The industry pointed out it would have to incur Rs. 5,000 per tonne more for making payment for the import of scrap in June when the rupee was at Rs. 44 a dollar.
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