MSMEs Calls For Ban on Indian Steel Exports

The high steel prices have prompted several large steel rolling mills to prefer exporting steel than supplying them to meet domestic demand.

SEATTLE (Scrap Monster): The Chamber of Industrial and Commercial Undertakings (CICU) urged the central government to ban exports of steel out of India for a period of at least six months. The demand comes in the wake of impacts caused to Micro, Small and Medium Enterprises (MSMEs) due to high steel prices.

The high steel prices have prompted several large steel rolling mills to prefer exporting steel than supplying them to meet domestic demand. The steel bookings to Europe and the Middle East have witnessed significant surge over the past few months. The increased exports of steel have hampered exports of finished products using steel, which in turn has impacted the large number of MSMEs in the sector.

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According to Pankaj Sharma, General Secretary, CICU, the industry is in panic situation, especially on account of steep rise in prices of raw materials. The prices of stainless steel and aluminum have surged higher by 32% and 26% over the past five-month period. The government must implement long-term policies to save the MSMEs from shrinking margins, he added.

Incidentally, steel is one of the major raw materials for several industries including engineering. The value-added finished steel products are mainly supplied to automotive, machinery and tools companies.

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