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Poor steel demand may lead to production cuts: Rastogi

— PHOTO: KAMAL NARANG

PROBLEM RIDDEN: R. L. Bhatia (left), Governor of Bihar with P. K. Rostogi, Secretary, Steel, at an interactive meet on steel in New Delhi on Saturday.

NEW DELHI: The slackening demand for steel, which has led to stockpiling of inventories in manufacturing units, may result in production cuts, Steel Secretary P. K. Rastogi on Saturday said.

“Due to recession in both global and domestic market and reduction in steel consumption, the inventories are piling up at manufacturing units. This could lead to reduction in production and huge unemployment,” Rastogi said at a function of All India Induction Furnace Association (AIIFA) here. The Secretary said imposition of higher import duty on steel could be a way to tackle the grim situation. Endorsing industry’s concern that India faces threat of cheaper imports from countries such as China, Ukraine and Thailand, the Steel Ministry has recommended levying 10 per cent import duty on the commodity to the Finance Ministry. On its part, AIIFA sought cheaper power supply for the industry and lowering of excise duty to 8 per cent from the present 14 per cent. The industry also demanded that 5 per cent import duty on stainless steel scrap should be brought to nil. — PTI

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