No consensus on iron ore, steel prices

New Delhi, July 9: Any major step by the Government in the near future to contain spiralling prices of iron ore is unlikely to happen as the Committee of Secretaries (CoS) which met on Wednesday to discuss measures on containing prices remained undecided on the same.

The CoS, which met under the chairmanship of cabinet secretary K M Chandrasekhar, deliberated on various options including enhancing the duty on iron ore export as well as banning its export, but failed to arrive at a consensus on the measures and instead decided to resume inter-ministerial consultations on ways to contain prices of the mineral, which has shot up as high as Rs 1,000 per tonne.

“What is of serious concern is the fact that rising ore prices could trigger rise in steel prices, which the steel makers have hitherto withheld. More so in a situation where every other day we get reports that prices of other steel-making inputs like coke and coal have also shot up. So clearly ore will have to be ensured to producers at a reasonable price,” a senior steel ministry official said.

The CoS is believed to not have discussed any measure on steel prices as retail prices in steel have come down by 10 per cent during the past one week. “Steel prices have shown a downward trend during the past one week in the retail markets owing to the administrative steps taken by the steel producers following their meeting with us,” steel ministry secretary Raghav Sharan Pandey told The Indian Express.

Even as iron ore is contributing to rising inflation, the government is also keen to ensure that steel prices do not increase owing to rise in prices of the mineral, especially in view of the fact that the pledge by the steel makers to withhold prices is slated to expire this month.

Too hot to touch?

•Panel will resume inter-ministerial consultations on ways to contain steel prices

•Options including enhancing the duty on iron ore exports as well as banning the exports altogether were discussed

• Mines minister Ola had earlier asked PM for withdrawal of the export duty on ore

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