Engineering exporters body EEPC India on Wednesday said a sharp rise in steel prices in recent months had dealt a crippling impact to exporters. “Exporters are deeply concerned… steel prices have increased from ₹35,000 per tonne to ₹42,000, in the past six months for a product like Hot Rolled Coil, an essential raw material for the engineering industry,” chairman Mahesh Desai said.
Prices of other essential metals have also been rising disproportionate to the end-product prices which can be realised in the international markets, making it tougher for exporters. Zinc prices have shot up from ₹170 per kg to ₹220 and freight charges have almost doubled. “Engineering exporters face severe headwind and this is impacting their exports. Exporters also face scarcity of steel,” he said, appealing to Commerce and Industry Minister Piyush Goyal to intervene and impress upon large steel manufacturers to keep prices in check.
At $38.14 billion during April-October, India’s engineering exports were down 14% compared to the $44.43 billion registered during the same period last fiscal as global headwinds continue to blow severely. Major markets of Europe are weathering a second wave of coronavirus, while the U.S. is reeling from the deadly impact of the pandemic. the release said.