NATIONAL ACTIVITY

MEETINGS-DOMESTIC

ACMA WITH COLD ROLLED STEEL MANUFACTURERS ASSOCIATION OF INDIA (CORSMA): 9 MAY 2001, NEW DELHI

In order to work out mutually acceptable solutions on issues linked with pricing, ACMA organised a meeting with CORSMA, at the CII Head Quarters, New Delhi

Speaking on the status of the auto component industry, Mr Deep Kapuria, Chairman, Northern Region ACMA, said that industry today covered a very high range of products with fragmented capacities. The auto component sector was under pressure from OEMs to continuously reduce prices, which was a global phenomenon. In order to give price reductions to the OEMs, the component manufacturers were in regular negotiations with steel suppliers to cut down costs of raw material.

CRSS manufacturers were of the view, that HR coil producers have been continually hiking their prices, taking advantage of the virtual ban on imports through the floor price mechanism and other non-tariff barriers. CR steel manufacturers, as a result, were often landing in a no profit no loss zone to keep their mills running. Their industry today had to do aggressive marketing and several secondary producers were closing down. The requirement of the customer too, they said, was changing on a day to day basis adding to their costs.

CRSS manufacturers sought the help of their consumers for removal of floor prices to resolve the problem. ACMA suggested, CORSMA take up this issue with the help of CII which is the larger forum to discuss such matters. ACMA, also, assured the cold rolled steel manufacturers that in principal, ACMA was in favour of a graded Import Duty Structure, starting with raw material at the lowest rate.