Unlike Paswan, Prasada can’t see any steel cartel

“Essar, Jindal and Ispat raised their prices by Rs 5,000 from midnight on the same day. As you are different companies, with different cost of production, how can rates be enhanced at same point of time? This hints towards a concerted move,” Paswan said referring to Chidambaram’s pronouncements where he had vowed to break the logjam and initiate ‘tough’ measures to check spiralling prices.

“Undoubtedly, raw material prices have gone up, but private players have enhanced their rates disproportionately,” he said. “We will take short and long term measures to contain steel prices and initiate necessary steps to enhance domestic production of the metal.”

Prasada who took charge of the office only last week, said that prices of different steel products have fluctuated widely in the last month which is attributable to various factors in the supply and demand side. “On the supply side, rise in price of steel can be attributed to a steep rise in price of critical input raw materials like iron ore, coking coal and metcoke in domestic and international markets. On the demand side mismatch in demand and supply is the main reason for the rise in steel prices,” Prasada said in a written reply.