Indian Foundries affected - Frequent key inputs' Price variations
Foundries and engineering industries in Coimbatore have expressed concern over frequent fluctuation of key input material prices. which has resulted in increase in cost of production of castings by approx 20% over the last two years & the foundries are taking up with the clients to consider compensation on account of steep price hike of inputs otherwise their survival will be at stake.
"The prices of all inputs to the foundries are fluctuating erratically. Therefore, the foundries are unable to hold the prices to customers," said a release from the Institute of Indian Foundrymen, Southern India Engineering Manufacturers' Association and CODESIA (the Coimbatore District Small Industries Association).
The industrial associations in their briefing to the press informed that the prices of pig iron, melting scrap, ferro alloys and alloying elements have all gone up by 10 per cent to 15 percent.
These industrial associations feel that the Govt. should facilitate import of pig iron & scrap at a competitive cost from the international market by removing the 5% import duty on pig iron & scrap. If they are forced to increase the price of castings, it will affect their export worthiness.
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