At the Indian Steel Conclave here, Muthuraman said there has been an unprecedented increase in raw material cost, ocean freights and robust demand for steel have driven up prices.
Asked if the current steel prices were sustainable for the industry, he said, "no."
While cost of coking coal has risen from $96 to $300 per tonne in the international market in recent months, iron ore rates have gone up almost four times in as many years.
Muthuraman, however, said primary steel producers endorsed the government's concern over steel adding to inflationary pressure and reduced their rates. But, the steel- consuming industry has failed to pass on the benefit of the price cut to end users, he added.
In May the primary steeel producers had reduced prices of their products by Rs 4,000 and had promised to the Prime Minister to hold the priceline for the next three months.
"The industry making finished steel products did not pass on the benefit of the price cut to end users as we hardly find the prices of cars or refrigerators going down" he said.
Muthuraman said the Government policies were encouraging overseas steel players to sell their products at higher rates in India, putting the domestic producers in a "difficult situation.
He said the government has kept the excise duty at 14 per cent despite the collection doubling in the last fiscal. The steel industry has been demanding a reduction in excise duty from 14 to 8 per cent.
