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Ludhiana industrialists blame big steel plants for the increase in steel prices

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Industrialists in Ludhiana are sore over the monopolistic approach of big players in the steel industry. They believe that owing to the spread of coronavirus in China, prices of steel from the past one and a half months had been increased by primary steel units by up to Rs 6,000 to Rs 7,000 per metric tonne.

The big steel plants are taking undue advantage of the China crisis by creating a shortage of steel in the country, claims the local industry. The industry also alleged that the public sector steel companies such as the Rashtriya Ispat Nigam and the Steel Authority of India (SAI) were also playing hand-in-hand with big private players.

Badish Jindal, president, Federation of Punjab Small Industries Association (FOPSIA) said the prime steel plants were exporting 80 percent of their steel to other countries or to the construction sector. Jindal further added that, “The prime steel products are used for making auto parts, fasteners, and products such as bicycle parts. A good amount of the product is absorbed by the local industry. These plants supply both flat and long products such as wire rods, HR coil, CR coil, and GC sheets. But sudden spurt in prices has shaken the industry, which is already passing through a recessionary phase.”

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