Enineering Units Hit Boz Of Raw Material
Engineering units of Coimbatore, which includes foundries, pumpset, auto component, machine tool, textile machinery manufacturers and fabricators, are hit by the steep hike in raw material prices. According to the Coimbatore District Small Industries Association, unless steel prices are controlled the downstream industries will be affected. The cost of production has gone up for the steel industries and the international rates are on an uptrend. However, the situation in the domestic market is disturbing since the prices here are ahead of the international rates. The iron and steel prices in China for its domestic market is 25 per cent less than that in India.Unless steel prices are controlled the downstream industries will be affected
Thus, exports are coming to a standstill and the units are unable to compete with those in China. The small and medium-scale units have entered into long term contracts or have quoted prices for Government tenders. Now, they have the option of shutting down business or defaulting on their commitment, the association said.
