 "Real estate slump hits Gujarat steel re-rolling units")
The slowdown in the real estate and infrastructure sectors across the country has hurt the steel re-rolling mills of Bhavnagar in Gujarat.
Demand has dipped by 60-65 per cent over the last two years, industry sources say, and this has resulted in closure of almost 75 units.
Industry players attributed their closure to a fall in demand from the infrastructure sector, including the construction business.
Poor demand has also led to a decline in the price of steel per tonne of 25 per cent. The price has fallen to Rs 31,000 per tonne in the past few months.
Furthermore, cheap imports from China are also hampering the business. There are about 120 re-rolling mills located in the Sihor locality of Bhavnagar district. Of these, 40-45 units are operational, while close to 75 units have downed shutters owing to lack of business.
Patel said the association has asked the government to raise the duty on Chinese imports, but there has been no response from the Union government.
The monthly production of steel products has been cut from 100,000 tonnes to 30,000 tonnes. Some of them have also changed their line of business over the last two years.
Patel said, "We are hopeful of the prime minister's 'Make in India' initiative. If it works, the industry will come out of the slack period."
Demand has dipped by 60-65 per cent over the last two years, industry sources say, and this has resulted in closure of almost 75 units.
Industry players attributed their closure to a fall in demand from the infrastructure sector, including the construction business.
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"We are mainly dependent on the real estate and infrastructure industries, and both are not doing well. There is a steep fall in demand for finished steel products -- including TMT bars, sheets and mild steel ingots -- from the infrastructure sector. The steel re-rolling industry has been severely affected because of poor demand from these sectors," said Harish Patel, president, Sihor Steel Re-rolling Mills' Association.
Poor demand has also led to a decline in the price of steel per tonne of 25 per cent. The price has fallen to Rs 31,000 per tonne in the past few months.
Furthermore, cheap imports from China are also hampering the business. There are about 120 re-rolling mills located in the Sihor locality of Bhavnagar district. Of these, 40-45 units are operational, while close to 75 units have downed shutters owing to lack of business.
Patel said the association has asked the government to raise the duty on Chinese imports, but there has been no response from the Union government.
The monthly production of steel products has been cut from 100,000 tonnes to 30,000 tonnes. Some of them have also changed their line of business over the last two years.
Patel said, "We are hopeful of the prime minister's 'Make in India' initiative. If it works, the industry will come out of the slack period."