Steel prices are expected to drop as production increases to meet the anticipated surge in demand, stated Union Steel Minister, Ram Chandra Prasad Singh.
Singh said the ministry is focusing on ramping up the country’s steel production and that the steel sector is deregulated and driven by market forces. Prices are cyclical in nature and depend on supply factors. To improve supply, the government has reduced the customs duty on few items which are imported, said Singh at an event on Aug 26.
He pointed out that iron ore is a key raw material for steel production. Iron ore production was impacted due to the COVID-19 resulting in a spike in prices which also impacted steel consumption.
Steel demand is expected to increase further in the domestic market backed by infrastructure projects, government schemes and construction activities, he added.