Price of casting has crossed more than Rs 80 per Kg.
Coimbatore: Coimbatore based industries compete with China and overtake it by getting export orders from various other countries such as Australia etc., but the skyrocketing price of castings which has crossed more than Rs 80 per kilo has put all the industries on the back foot.
The Institute of Indian Foundrymen (IIF) ex-President, N Visvanathan said, "Castings are one of the main raw materials for almost all industries which come under the manufacturing sector. There are more than 600 foundries functioning across Coimbatore district. Post the pandemic outbreak, the foundry sector is continuously witnessing many obstacles. Out of the total workforce 80% of the workers are from other states. Despite shortage of workers, we are somehow managing to function, but the abnormal price hike of raw materials witnessed in the market is hitting hard on the entire foundry sector. The normal price of casting one kilo is Rs 60. Now it has increased to more than Rs 80.
The highlighting factor is the job order market at present is very good which will help all the industries to come out from the crisis caused by the pandemic outbreak. But due to the raw material price hike the industries are not able to function properly. Before the price hike of raw materials, we competed with China and got the export orders to Australia, but since now the raw materials price has been abnormally increasing we have lost the hope to compete with China. We request the Central Government to take the necessary steps at the earliest and ensure all the manufacturing sectors continue to function properly. " he said.
Railway Suppliers Association (RASA) President, S Surulivel said, "Pig iron, Casting Scrap etc are some of the main raw materials used in the foundry industries. At present all the raw materials used in foundries are witnessing an abnormal price hike due to which the casting prices have gone up to more than 80 rupees per Kg. This is hitting very hard on the entire manufacturing sector. Castings play a major role in all the manufacturing industries and this is the reason why it is making a big impact on the entire industry sector. We have sent so many representations to the Central Government but still no action has been taken."
Coimbatore Tirupur Districts Micro and Cottage Entrepreneurs Association (COTMA) President, C Siva Kumar said,"For the first time in the history, the price of castings has crossed more than 80 rupees per Kilo. Excess of iron ore exports is one of the main reasons for the price hike of raw materials such as steel, aluminium etc. Following the opposition, in recent days iron ore export has been reduced and due to this, the price of it has also come down a bit. But still the important raw materials used in the foundry sectors such as Casting scrap, Pig Iron prices continue to witness abnormal price increase. The steep price increase of Castings has made an impact in all the industries which comes under the manufacturing value chain. The biggest headache which the industrialists are facing is that we cannot change the prices for the job orders stating the raw material price hike as reason. We are awaiting the steps taken by the central government to solve this issue."
The Institute of Indian Foundrymen (IIF) ex-President, N Visvanathan said, "Castings are one of the main raw materials for almost all industries which come under the manufacturing sector. There are more than 600 foundries functioning across Coimbatore district. Post the pandemic outbreak, the foundry sector is continuously witnessing many obstacles. Out of the total workforce 80% of the workers are from other states. Despite shortage of workers, we are somehow managing to function, but the abnormal price hike of raw materials witnessed in the market is hitting hard on the entire foundry sector. The normal price of casting one kilo is Rs 60. Now it has increased to more than Rs 80.
The highlighting factor is the job order market at present is very good which will help all the industries to come out from the crisis caused by the pandemic outbreak. But due to the raw material price hike the industries are not able to function properly. Before the price hike of raw materials, we competed with China and got the export orders to Australia, but since now the raw materials price has been abnormally increasing we have lost the hope to compete with China. We request the Central Government to take the necessary steps at the earliest and ensure all the manufacturing sectors continue to function properly. " he said.
Railway Suppliers Association (RASA) President, S Surulivel said, "Pig iron, Casting Scrap etc are some of the main raw materials used in the foundry industries. At present all the raw materials used in foundries are witnessing an abnormal price hike due to which the casting prices have gone up to more than 80 rupees per Kg. This is hitting very hard on the entire manufacturing sector. Castings play a major role in all the manufacturing industries and this is the reason why it is making a big impact on the entire industry sector. We have sent so many representations to the Central Government but still no action has been taken."
Coimbatore Tirupur Districts Micro and Cottage Entrepreneurs Association (COTMA) President, C Siva Kumar said,"For the first time in the history, the price of castings has crossed more than 80 rupees per Kilo. Excess of iron ore exports is one of the main reasons for the price hike of raw materials such as steel, aluminium etc. Following the opposition, in recent days iron ore export has been reduced and due to this, the price of it has also come down a bit. But still the important raw materials used in the foundry sectors such as Casting scrap, Pig Iron prices continue to witness abnormal price increase. The steep price increase of Castings has made an impact in all the industries which comes under the manufacturing value chain. The biggest headache which the industrialists are facing is that we cannot change the prices for the job orders stating the raw material price hike as reason. We are awaiting the steps taken by the central government to solve this issue."