FOPSIA demands CBI inquiry into fluctuation of steel prices

Tribune News Service
Ludhiana, August 13

Expressing concern over fluctuation into the prices of steel in the country, the Federation of Punjab Small Industries Association (FOPSIA) has written a letter to the Prime Minister Narendra Modi seeking CBI enquiry against ICEX (Indian Commodity Exchange).

In the letter, the President FOPSIA Badish Jindal writes that India produces 10.7 crore tons of steel every year, whereas only 10,000 tons of steel is traded in ICEX in India. As there is no regulatory body for steel in India, the market prices of steel are based on the ICEX prices. The steel trading on ICEX began from August 2018 and since then, the steel prices are fluctuating a lot in India. Earlier the SMS cartel was controlling the steel prices but after the resentment of industry and intervention of court, that cartel was banned in the month of June 2018. 

In the month of May 2019 the prices of Steel Billets were Rs34000 per metric tons, further In the month of June the prices dropped down to Rs 30000 Per metric tons and further reduced down to Rs 27,000 Per Metric tons in July 2019. "without any change in prices of inputs and market demand, the ICEX dropped the prices of steel to 7000 Rs per metric tons in three months, which is strange", said Jindal. 

But suddenly in the month of August 2019 the ICEX raised the prices from 27000Rs Per metric tons to 29500Rs per metric tons just in two days and further showing the future trading in the month of September and October with an expected increase of 3000 to 4000 Rs per metric tons.