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Deteriorating rupee value puts Indian steel producers in anxiety

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by - 10/7/2011 4755 Views

Present situation of steel makers of Punjab

Punjab is the leading producer of secondary steel with the production capacity of 10,000 tons per day. Mandi Gobindgarh, Khanna and Ludhiana are the place that first comes into mind when spoken about steel production in Punjab.  An average of 5000 containers of scrap is imported by the producers every month.

But now the situation is totally changed due to the weakening rupee against US dollar as 30% of the production is chopped down due to rise in the import cost of the raw material. Import cost of per ton of scrap has trekked by Rs.2, 500 resulting in the reduced demand for importing iron & steel.

The steel producers have reduced 25% - 30% of their production as they find it difficult to afford the additional import cost due to deflate in rupee.

Category : Metal

Tags : Metal Scrap,

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