Dharamsala: Union minister for steel Virbhadra Singh today assured that prices of steel in India will likely stabilize in the coming days. While interacting with media persons during his visit to Kangra district, Singh claimed that steel prices would reduce substantially within two or three months.
The Union minister said that prices had surged substantially when he took charge, going up to Rs 6,000 per tonne, but his ministry managed to control the inflationary trend.
Citing the reason for hike in prices, he said that international prices and raw material demand affect the rate of steel, besides increase in input cost.
Singh said that prices of iron ore and coking coal, key inputs in the alloy, have been surging mainly on revival in demand from China and within the country. “After the surge in global iron ore demand, the Union government had recently raised the export duty on iron ore lumps by 5 per cent to protect domestic steel industry,” he informed. Export duty on iron ore lumps has been increased to 15 per cent from the earlier 10 per cent level.