Steel is a free market product in India, but it is a rather political one, and if the latest statements from a minister comes true, some kind of price restraints are on the horizon.
“Regarding steel and cement, this is really a problem for all of us. I feel that this is a cartel,” Nitin Gadkari, minister for road transport & highways and also minister of micro, small and medium enterprises was seen saying on ANI news channel on Sunday, referring to rising prices of the two commodities.
“We’re in the process of finding out a solution. One of the solutions is (to have a) regulator authority for steel and cement… I will look into it.”
Gadkari said that he has discussed the matter with the prime minister and the principal secretary and would approach the finance ministry.
Steel prices are at a 12-year high with repeated hikes from large steel producers since the lockdown in March which is hurting the consuming sectors.
Auto companies and the construction sector have passed on the hikes as a big revival in being seen in the market.
However, the small steel producers that use crude steel to manufacture products, have raised complaints to the government.
Gadkari’s motivation for drawing attention to the steel prices is not just to help small industries but also to keep the budget for the government’s infrastructure spending within limits.
SteelMint has been trying to get a confirmation on whether a Steel Price Monitoring Committee is going to be formed and its questionnaires emailed earlier this week to Gadkari, secretary — steel, secretary — road, transport and highways, secretary — micro, small, medium enterprises, have remained unanswered.
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