| Finished products prices have surged 15-20 per cent in most foreign markets, especially in the US, in the last four to five months. During the same period, raw material prices have remained stable. |
| "Raw material prices had gone up globally first, and prices of finished products from competing countries like China as well as domestic price in the US have gone up now. Essentially, the landed price of our product must compete with them," Rakesh Shah, chairman of Engineering Export Promotion Council (EEPC), said. |
| The higher per unit realisation has come in both low and high value item. While low value casting and forgings were up about 20 per cent, high value auto components prices were 10 per cent higher. |
| At this point, producers have resigned themselves to high steel prices with the assumption that it would rule high for next few years. |
| "We are no longer concerned about the high prices but availability and stability. Raw material prices are still ruling at 80-100 per cent higher than what it used to be one and half years ago," Shah added. |
| At present, billet price were $ 401 per tonne, wire rod $ 504/ per tonne, hot rolled coil $535/ per tonne, cold rolled $ 531/ per tonne and galvanised plate at $ 620 per tonne. |
| Prices have hovered around these levels for five months after rising sharply before that. |
| Shah said exporters had started planning ahead and were importing more scrap import for use as raw material. Moreover, import duty on steel had been lowered leading to stabilisation in the domestica prices. |
| Prime steel export to China was lower as the Chinese government was working to cool the economy. |
| Shipping rates had stabilised too during the same. Engineering export from India stood at $ 10.5 billion in the last fiscal and it is expected to go up to $ 12 billion in 2004-5. The ministry of commerce has set a target to reach $ 20 billon export by 2009. |
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