Price of iron products soars; hike of over Rs 10 per kg

Kochi, Dec 7 (FN Bureau) The price of raw materials of iron is skyrocketing and has increased by Rs 10 to Rs 14 per kilogram due to artificial shortage created by companies to sell the materials, according to the traders here. The companies have decreased production so as to obtain high price in the market. This is the first time such an increased rate is recorded. The hike that started in November continues this month too, they said.

The traders who entered contracts with consumers months back for providing iron materials after receiving advance amounts will have to face huge loss. It would affect the construction sector badly, traders opined. In November the price increased by Rs 10 and in December it increased by an additional Rs four. The price of TMT bars and MS angles have increased by Rs 10 to Rs 13 per kg. Price of plates, sheets GP/MS pipes have increased from Rs 11 to Rs 14 per kg. The price of aluminium sheet increased from Rs 30 to Rs 40. However, the price hike was witnessed only in domestic market while the international markets the price remains as usual. Some steel companies have procured the management of iron ore mines in Odisha through tenders. They were deliberately decreasing the mined amount, office bearers of Kerala Steel Traders Association said. The Covid pandemic had caused financial issues as the production had decreased. The companies were trying to recover from the loss by creating artificial shortage, the office bearers said.