SAIL mulls contracts with engineering exporters

May 17th, 2010 - 6:02 pm ICT by IANS  

Kolkata, May 17 (IANS) The Steel Authority of India Limited (SAIL) is mulling contracts with engineering export companies to mitigate the problem of volatility in input prices, a top SAIL official said here Monday.
“We are willing to enter into some kind of term contract with engineering exporters… may be at least for three months,” SAIL chairman S.K. Roongta told reporters here.

He said two things are worrying the engineering exporters - one is the volatility of input cost and the other is the volatility in foreign exchange.

“If some exporter wants I can keep a fixed price for three months,” Roongta said.

The soaring prices of steel and related products have been a concern for the small-scale engineering industries.

SAIL supplies ISP grade pig iron to most of the engineering exporters.

Prices of pig iron have spiralled from Rs.17,600 per tonne in December 2009 to Rs.23,700 per tonne in April 2010.

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