Rising steel prices hit engineering exports

Bengaluru: A recent sharp rise in steel prices has dealt a crippling impact to the country's engineering exports which are facing the most challenging global markets in the face of another wave of Covid-19 pandemic in several major economies, EEPC India has said.

''Engineering exporters are deeply concerned over rising steel prices. The prices have increased from Rs 35,000 per ton to Rs 42,000 per ton in the past six months for a product like Hot Rolled Coil, an essential raw material for engineering industry,'' EEPC India Chairman Mahesh Desai said in a statement.

The prices of other essential metals have also been rising disproportionate to the end-product prices. Zinc prices have shot up from Rs 170 TP to Rs 220 TP and freight charges have almost doubled. "Engineering exporters face severe headwind and this is impacting their exports. Exporters also face scarcity of steel."

Mr Desai appealed to Commerce and Industry Minister Piyush Goyal to intervene and impress upon the large steel manufacturers to keep prices in check.

''We urge the government to take up these issues to stabilize raw material prices as our member-exporters are facing deleterious impact," the EEPC India Chairman said. India's engineering exports have declined by 14 per cent from USD 44.43 billion during April-October 2019-20 to USD 38.14 billion in the same period of the current financial year as the global headwinds continue to blow severely.