Iron ore producers asked to fix prices for the long term

September 12th, 2008 - 3:21 pm ICT by IANS  

New Delhi, Sep 12 (IANS) In an effort to bring down prices of steel products, the government Friday urged iron ore producers to enter into long-term agreements with steel manufacturers and ensure supplies.”Iron ore producers should have long-term agreements with steel manufacturers on supplies at reasonable rates,” steel secretary P.K. Rastogi said on the sidelines of a conference organised by the Confederation of Indian Industry, an industry lobby.

Iron ore and steel producers met last month to review their profitability.

“Talks between them are still on and we expect a positive outcome. It is in their interest,” Rastogi said.

He said such agreements were viable as steel prices were softening in the international market, and subsequently the domestic market has too witnessed a minor decline.

There is every possibility for a further downward revision of steel prices in the country, the steel secretary added.

Rastogi, however, said the government would not fix any price mechanism for steel products.

India’s steel demand is growing at 12 percent, with annual production of about 55 million tonnes.

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