Indian Govt. May Ask Iron Ore Producers to Cut Prices

Indian Govt. May Ask Iron Ore Producers to Cut Prices

The union government on Thursday decided to call a meeting of country’s iron ore producers next week to discuss problems faced by the sector.

Speaking to reporters here, Commerce Secretary G.K. Pillai said: “We have called a meeting of the iron ore producers on 1st April. We will persuade them to reduce prices and any hike in the export duty will be the last resort for the government.”

Faced with high inflation touching almost 6%, the Government has being making efforts to persuade both steel manufacturers and iron ore producers to keep the prices in check.

However, the prices of steel and iron ore were going up in the recent past creating difficulties for a host of industries, including the automobile.

The iron ore miners and the steel producers have being engaged in a running feud over the export of the precious mineral while the steel producers want the ore export to be banned, the miners have being resisting the move.

Meanwhile, steel producers had agreed to stop exports immediately on government’s concern of the rising prices of the alloy.

Steel producers met the top brass of the Steel Ministry on 25th March and conveyed that they also shared the government’s concern on rising prices and inadequate availability of steel.

Hectic business at the wholesale iron and steel market here failed to make any changes to steel prices on Wednesday.

Most of the steel segments, after moving in a little range on alternate bouts of buying and selling, finished unchanged.

Traders said sufficient stock position mainly absorbed the fresh buying from construction units and kept the prices unaltered. Tight money condition was the factor behind flatness in prices.


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