The foundry industry, which is already passing through a bad phase, has demanded concessions from the government and castings users following yet another sharp increase in the price of pig iron and steel scrap.
The Institute of Indian Foundrymen (TIIF) has demanded that the government ensure that the Steel Authority of India (SAIL) made available pig iron at a reasonable price and casting users must review prices every fortnight, linking prices with that of raw materials used in castings.
TIIF president Subodh Panchal said the basic price of pig iron has increased from Rs 10,700 per tonne in March 2003 to Rs 12,500 per tonne this month.
The price of pig iron, the main ingredient for casting, in November 2002 was Rs 8,200 per tonne, he added.
Steel scrap price has increased from Rs 10,600 per tonne in March 2003 to Rs 13,000 in August 2003.
The price of M S scrap (steel scrap) in November 2002 was Rs 7500 per tonne.
Subodh Panchal said more and more foundries are forced to close down because the government has increased prices of raw materials.
He said the demand for castings in the domestic market had just picked up a couple of months ago and the response from foreign buyers too was showing an upward trend.
