Lower global prices plague local steel companies: Steel secretary Sandeep Poundrik

New Delhi: Volatility in raw material prices, slow operationalisation of mines and depressed steel prices due to excess supply in the global market continue to plague the domestic steel industry, steel secretary Sandeep Poundrik said on Tuesday.

"Steel prices have been lower than what they should have been. We are running at prices which are five years low, and it affects the small players more," Poundrik said at the CII steel summit, adding "we have enough iron ore but we are not starting mines fast enough."

Low steel prices have also become a problem when the industry needs to add 100 million tonnes (mt) capacity in the coming 5-10 years and another 100 mt in 5-7 years after that.


"100 mt of capacity needs nearly $100 billion investment," he said.

Poundrik also highlighted the problem of excess steel production in the world, leading to dumping not only in India but also in other countries.

He said the notion that the steel industry is run by three or four players should be dispelled, as 47% of the total production happens across 2,200 steel players.