Brass Parts Prices hitting Industry

In Jamnagar, brass parts industry is facing a new problem with uncertain pricing of raw material. recently Jamnagar brass parts has seen steep rise in prices of brass scrap, from Rs 250 to Rs 300 per kg in just past five months. 

Though Jamnagar industry is mature enough to handle the price changes, this time small players making brass parts are finding this phase tougher then earlier times.

Ramjibhai Patel, president, Jamnagar Factory Owners' Association (JFOW) said that increased prices of brass scrap is killing many small business units, and the sentiment around is not very good. 

Normaly brass scrap valuation is based on copper prices, off late, London Metal Exchange (LME) has seen high volatility in pricing that leads to such high valuation in the brass parts.

Jinesh Shah, MD of the Rajhans Impexs added that the extra 4 pc special additional duty adds insult to the injury, everyone expects Govt. to slash the extra duty considering the recent turmoil in pricing.

Jamnagar brass industry imports about 300 containers (each 25 tonnes) of brass scrap every month, there levies 5 % customs duty,  and additional 10 % excise duty + 4 % SAD, SAD is refundable to the traders along with 2% cess.

These prices also affects the order book, off late most of the consumers have not placed new orders as the raw material prices are skyrocketing.

This rise in raw material has increased the production cost by around 20-25 per cent.