Steel Trap: Are India’s Trade Rules Forging Strength or Shackling Growth?

Steel Trap: Are India’s Trade Rules Forging Strength or Shackling Growth? : If you look at the steel price graph from the last two years, you’ll see a consistent increase. So, what could be the reason behind this trend?

One factor is the rising cost of production. Steel manufacturing depends on raw materials, machinery, industrial overheads, and coal. When the final product costs more to produce, its price naturally goes up. India has taken several steps to promote its domestic steel industry and protect it from foreign competition. These measures include implementing import tariffs, issuing Quality Control Orders, and imposing restrictions on the import of certain products.

The Indian government’s strong focus on the “Made in India” initiative is a positive step, especially since India has an abundance of minerals, from Chhattisgarh to Kolkata. The government has also provided some relief on ferrous scrap, which helps reduce production costs slightly. Smaller steel manufacturers do face some challenges because government restrictions make imports more expensive.

However, all these factors are secondary to the main reason for the sharp rise in steel prices:

Demand.

Over the last few years, the demand for steel has skyrocketed. You can see it everywhere—the number of cars on the roads has increased dramatically, with almost every other household owning one. Car manufacturing companies are highly dependent on steel, and as their demand for steel rises, so do the prices. The same goes for TMT bars, which are in huge demand due to the booming real estate, construction, road work, and infrastructure sectors. like TMT Bras its applicable for steel sheets, structural steels, plain round bars also. It’s only natural that steel prices would increase in such a scenario.

Just look at the price graph from the past two years to see the significant jump in steel prices. What are your thoughts on this? Let us know in the comments.