Govt urged to ban steel, iron ore exports to control prices

The Association of Indian Forging Industry (AIFI) has urged the government to ban steel and iron ore exports as domestic steel prices have shot up 25-30 per cent in the last three months due to increased exports and squeezed supply in the local market, putting the forging industry at serious risk, particularly when the industry is still recovering from Covid-inflicted business losses and the resultant pressure on cash flow and cash reserves. The industry is still going through a very difficult time and is not in a position to absorb losses. It’s believed that rising demand for steel and low steel production for the domestic market due to increased steel exports are the prime reasons for price hikes. The Association has requested the government to consider a ban on steel and iron ore exports so that demand within the country can be met in a cost/price-effective manner, as per a report.