Nearly 3,000 brass part units in Jamnagar, were on a symbolic one-day strike to protest the substantial surge in the prices of brass scrap,
At London Metal Exchange (LME) and local commodity exchanges, brass parts prices have been constantly rising for the past four months. Manufacturers said that the prices have increased to Rs 270/kg, from Rs 215/230 four months ago.
its a bit strange as the prices were as low as Rs 80/100 two years ago , it is to be noted that Brass scrap is a key raw material used by the industry.
A leading brass parts manufacturer explained that speculative trading in brass and copper at the LME and other commodity exchanges had hugely contributed to the woes of the brass parts industry.
Currently most of the brass part units were operating at 40% / 50% capacity , a higher tax burden is also a cause of concern for the industry, bit shame that of the Rs 270 per kg of brass scrap, brass parts units have to bear a tax burden of Rs 36/Kg .
morever prices of finished products have not increased as much as the prices of raw material, which has left all the brass part units in the lurch.