Govt asks iron-ore producers to ensure regular supplies

NEW DELHI: The government has asked iron-ore producers to ensure long-term supplies to steel manufacturers at a reasonable rate so that prices of final products come down, Steel Secretary P K Rastogi said on Friday.

But the government is not in favour of fixing any price mechanism for steel products, he said on sidelines of the CII Steel Tube Summit here.

Mr Rastogi said iron-ore producers have broadly agreed for a long-term agreement with steel manufacturers. The talks on the issue are still on, he added.

Internationally, steel prices are softening and the domestic market has also witnessed a marginal decline. "There is a case for further downward revision of steel prices in the country," Mr Rastogi said.

The annual steel production is about 55 million tonnes with the demand growing at 12 per cent, leaving a gap between demand and supply of about 6 per cent.