New Delhi — Prominent trade body Indian Steel Association has written to the prime minister’s office, asking for a ban on export of iron ore to help improve the raw material’s supply to steel mills.
“A temporary ban of iron ore export for a six month period till the situation stabilizes, is the need of the hour…,” the letter, addressed to principal secretary to prime minister, PK Mishra said.
A copy of the letter dated Dec 28 was seen by SteelMint.
Iron ore prices have shot up globally owing to shortages on account of the Coronavirus pandemic and also because China increased its purchases of the steel-making ingredient.
The letter also asked for other measures to be taken, namely asking state government mining companies to step up production and restricting supply through e auctions only to end users, i.e. steel and pellet makers.
It asked for easing of logistics situation by curbing evacuation of iron ore by Odisha miners.
The representation of Indian Steel Association comes in the backdrop of steel prices at 12-year highs that have drawn criticism from auto and construction sectors.
In fact, battle lines have got drawn between the steel producers and steel consumers which was highlighted by an angry letter from Nitin Gadkari, minister for road transport and highways and micro, small and medium enterprises to the prime minister.
Gadkari said the high steel prices are making projects unviable, as per reports.
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