The initial increase was impossible to sustain, and the further hike in prices will prove to be disastrous, Association of Indian Forging Industry (AIFI) said in a release.
As much as 80 percent of the ₹34,000 crore domestic forging industry comes from the automobile industry.
“Steel prices have increased by 25 to 30 percent in the last three months, putting the forging industry at serious risk, particularly when we are still recovering from Covidinflicted business losses and the resultant pressure on cash flow, and cash reserves,” AIFI president Vikas Bajaj said.
Steel typically constitutes 60 to 65 percent of the ex-factory value of forgings.
“The industry is still going through a very difficult time and is not in a position to absorb losses. I believe that rising demand for steel, low steel production for the domestic market due to increased steel exports are the prime reasons for price hikes.
Bu hikaye Steel Insights dergisinin January 2021 sayısından alınmıştır.
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Bu hikaye Steel Insights dergisinin January 2021 sayısından alınmıştır.
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