Due to the war in Ukraine, the already volatile metal prices have again shot up severely, particularly that of Iron, Steel, Copper and Aluminium.
Coimbatore: In a statement, K V Karthik who serves as President of the Southern India Engineering Manufacturers’ Association conveyed that the repeated and uncontrolled increase in raw material prices has been affecting the pump industry for the past two years.
Due to the war in Ukraine, the already volatile metal prices have again shot up severely, particularly that of Iron, steel, copper and aluminium, engineering plastics are also rising on account of rise in crude prices.
The cost to manufacture a pumpset has risen by 50% with reference to 2020 material prices. The pump manufacturers were not able to pass on the entire extent of the price to the customers due to market resistance. Increase of pumpset prices have partially offset the cost of manufacture, but have led to a severe slowdown in demand. Further increase in pump prices will pull the demand down further.
At present, pump manufacturers are only operating at 30% capacity. Further slide in demand will make the running of their Industry unviable. Most of the MSME pump manufacturers have already declared a cash loss in their operations. The yearend financials are expected to be negative for the industry. In the last 7 days since the start of the war, copper prices have increased by Rs.56, Aluminium by Rs.40, Pig Iron by Rs.7, and Steel by Rs.10. The rising prices of iron and steel made with Iron ores mined in India are hard to understand.
For the past one-and-half years through several representations and mediums, we have been requesting the union government’s intervention to control the raw material prices. We hope at least in this dire hour of crisis the union government will intervene and control the metal prices, by talking to iron and steel manufacturers. If raw material prices are not controlled, the 10,000 crores Coimbatore pump industry providing employment to about lakh persons will face an existential crisis and several MSME pump manufacturers will cease operating in the next few weeks, the statement ended.
Due to the war in Ukraine, the already volatile metal prices have again shot up severely, particularly that of Iron, steel, copper and aluminium, engineering plastics are also rising on account of rise in crude prices.
The cost to manufacture a pumpset has risen by 50% with reference to 2020 material prices. The pump manufacturers were not able to pass on the entire extent of the price to the customers due to market resistance. Increase of pumpset prices have partially offset the cost of manufacture, but have led to a severe slowdown in demand. Further increase in pump prices will pull the demand down further.
At present, pump manufacturers are only operating at 30% capacity. Further slide in demand will make the running of their Industry unviable. Most of the MSME pump manufacturers have already declared a cash loss in their operations. The yearend financials are expected to be negative for the industry. In the last 7 days since the start of the war, copper prices have increased by Rs.56, Aluminium by Rs.40, Pig Iron by Rs.7, and Steel by Rs.10. The rising prices of iron and steel made with Iron ores mined in India are hard to understand.
For the past one-and-half years through several representations and mediums, we have been requesting the union government’s intervention to control the raw material prices. We hope at least in this dire hour of crisis the union government will intervene and control the metal prices, by talking to iron and steel manufacturers. If raw material prices are not controlled, the 10,000 crores Coimbatore pump industry providing employment to about lakh persons will face an existential crisis and several MSME pump manufacturers will cease operating in the next few weeks, the statement ended.