The prices of steel products like Hot Rolled Coil and TMT bar have increased by 34.38 percent and 35.64 percent respectively during the last 3 years. This is owing to increase in cost of crucial raw materials, labour, transportation and other inputs.
Minister of Steel, Beni Prasad Verma informed this in Lok Sabha. The minister said, although the prices of Coking Coal have decreased (in rupee terms) by 15.20 percent, there is an increase of 27.86 percent (in rupee terms) in the prices of iron ore during the last 3 years.
He said the prices of steel items in the domestic market have been fluctuating in accordance with the domestic market conditions, international steel prices, raw material prices and other inputs.
Verma said, steel, in the country is a de-regulated sector. Accordingly, prices of various steel products are decided by individual producers based on market conditions including demand–supply scenario, trend of international steel prices, cost of raw materials and other inputs etc.
Government has no direct role in fixation of steel prices. However, government intervenes through fiscal measures, as and when need arises to maintain steady supply position and to boost steel production in the country.
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