The Union Minister of steel, Mr. Virbhadra Singh has assured that that the prices of steel would soon be stabilized and there will be no hike in steel price. He has informed that within few months the prices of steel will be reduced substantially.

The price of steel is hugely dependant upon the international price of the raw material. If the price of raw materials is increasing then it is also pulling the domestic steel price up.

The Minister has also said that the price was Rs 6,000 per tonne in his early days of being the steel minister. The price has reduced little bit. But it will be stable soon.

The Government has increased the export duty on iron ore lumps to 15% in this week. The reason behind such hike is to discourage exports so that the raw material availability for local steel mills can be improved. After such hike it has been expected that there will be a huge decrease in the iron ore exports this month as well. Steelmakers are now concentrating on the domestic market rather exporting minerals to China.