Foundries ask for Regulator for Price Control
The foundries & casting exporters in West Bengal are protesting against the steep rise in key material inputs like pig iron & metcoke .According to the Chairman of Indian Foundry Association,Mr Pawan Sureka,Govt must set up a regulator & ensure that Govt restricts the export of iron ore & pig iron to restrain such steep hikes failing which it will be left with no alternative but to close the foundries
Vice President,IIF & Chairman EEPC(ER) Mr Ravi Sehgal, said the government must also "armtwist" China to remove its duties & restrictions on coking coal exports.
"China imports 78 million tonne of iron ore a year from us. All that we need is 5 million tonne of coke from China at the current capacity levels," said Sehgal. Export and other duties have pushed up the prices of Chinese coking coal to $570 a tonne against the earlier and viable level of $450 a tonne, according to Mr Ravi Sehgal.
The production costs have gone up by 25% due to steep hike in key raw material prices & many units are likely to shut their shops as the operations are no longer viable .In last 3 months alone the prices of pig iron have gone up by almost 50% whereas the buyers & importers of castings are not willing to compensate to meet the bare min increase in the production cost According to Mr Ravi Sehgal,Vice President,IIF & Chairman,EEPC(ER),nearly 50% units producing grey cast iron castings are closed till the price negotiations with their clients conclude satisfactorily
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