| Date: |
04-08-2011 |
| Subject: |
Brass Business Hit By Drop in Exports |
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AHMEDABAD: A decline in export orders from the US, Europe and the Middle East has hit the domestic brass manufacturing units of Jamnagar which are now utilising only 70-75% of their current capacities. Volatility in brass prices is cited as the major reason with current prices ruling at Rs 290-295 a kg, 20% more than the previous year's prices.
The Rs 2,000-crore industry with almost 5,000 units manufactures brass components for products ranging from a strap watch to an aircraft part.
"There is a slowdown in the import of brass scrap due to prices fluctuations. Three months ago, brass scrap was selling for Rs 310 a kg. It then fell to Rs 280 a kg and now selling for Rs 295 a kg . Exports of brass components from India, particularly from Jamnagar, have substantially been hit. In the last two months, orders from international players have also dwindled," said Jamnagar Factory Owners' Association secretary Bharatbhai Dodhiya.
Brass scrap importers have seen demand from Indian brass manufacturers fall by 40% in the past few months. Brass scrap prices which were ruling at $4900 per tonne six months ago were now being bought by Indian importers for $5300 per tonne.
Source : economictimes.indiatimes.com
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