Press Information Bureau

Government of India

Ministry of Steel

17-May-2012 16:04 IST

The Minister of Steel, Shri Beni Prasad Verma has said that the prices of steel items in the domestic market have been fluctuating in accordance with the market conditions such as demand supply scenario, trend of international steel prices, cost of raw materials and other inputs.  A table indicating monthly price movement in respect of representative category of steel items including those used for building purposes in retail market in four main regions – Kolkata, Delhi, Chennai and Mumbai during the last three years (2009-10, 2010-11 and  2011-12) is  annexed at Annexure I to III.

In a written reply in the Rajya Sabha today Shri Verma said, Steel is a deregulated sector.  Accordingly, prices of various steel items are decided by the individual producers based on market conditions including demand supply scenario, trend of international steel prices, cost of raw materials and other inputs, etc.  Government has no direct role in fixation of steel prices.  However, Government intervenes through fiscal measures, as and when need arises, to maintain steady supply position in the domestic market and to boost steel production in the country.

 

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NSK/DB

Deregulated steel sector: market forces determine prices while government may use fiscal measures to ensure supply. The steel sector is deregulated; individual producers set prices based on market factors including demand-supply balance, international price trends and input costs. The Government does not directly fix steel prices but may adopt fiscal measures to stabilise domestic supply and boost production.