₹4,000 Steel Price Surge Sparks Alarm Among Punjab MSMEs, ATIU Demands Govt Action
January 5, 2026
Ikramudin / Ludhiana
Alarmed by a sudden and steep rise in steel prices, the All Industries & Trade Association (ATIU) has urged the government to intervene and regulate the steel market, warning that unchecked price hikes are crippling small and medium manufacturing units.
The issue was discussed during a meeting of the Executive Body of ATIU, where members expressed concern over a sharp increase of nearly ₹4,000 per metric tonne in steel prices within just 15 days. The rise has severely impacted local industries dependent on steel as a primary raw material.
ATIU President Pankaj Sharma said manufacturers of bicycle parts, auto components, sewing machine parts, hand tools and other engineering goods are under immense financial stress due to the sudden hike in prices of ingots, HR, CRC and pig iron. He stated that MSMEs, with limited working capital, are the worst affected.
Sharma blamed the absence of effective government oversight for the situation, alleging that major steel producers are arbitrarily fixing prices by pooling material. He demanded the constitution of a regulatory authority to monitor steel prices and called for declaring steel—especially construction steel—as an essential commodity, citing its direct impact on both industry and the common man.
Referring to the Punjab State Industries and Export Corporation (PSIEC), Sharma recalled that it was established in the 1980s to supply steel to industries at stable and subsidized rates, even in small quantities. However, he said PSIEC has failed to fulfil its mandate, leaving its prime-location godowns largely vacant and stocked with obsolete material that is of little use to MSMEs.
Senior Vice President Anil Sachdeva said frequent and unpredictable price fluctuations have made it impossible for industries to plan production schedules or pricing strategies, leading to uncertainty and losses.
Executive members Bhushan Gupta and Vineet Gupta, who operate forging units, highlighted a growing mismatch between customers and raw material suppliers. They said customers insist on delaying price revisions until the next quarter, while steel manufacturers demand immediate acceptance of higher rates and refuse to supply material without revised purchase orders.
Concluding the meeting, Sharma warned that repeated and unregulated price hikes have encouraged black marketing and hoarding, often promoted through social media platforms. He said such practices have resulted in harassment and financial losses for MSMEs and stressed that coordinated support from both the State and Central Governments is essential to protect the manufacturing ecosystem.
Steel Price Hike Punjab Industries ATIU Ludhiana MSMEs Steel Regulation Manufacturing Sector Raw Material Prices PSIEC Failure
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