MUMBAI (Commodity Online): Forging industry in India has cried foul over the rising steel prices saying that the hike is unjustified.

Association of Indian Forging Industry said such hikes can push the equipment manufacturers into losses.

The industry has to combat big steel makers. The hikes in steel prices are unfair. If such upward trend continues forging companies will go into losses, it said.

Cashing in on the rising demand and firming global trend, domestic steel firms like SAIL and Tata Steel have increased the prices of some of their products by up to Rs 2,000 in past two months, which has hit the forging industry hard.

The association said global competitiveness of the domestic industry is under threat and exports would be badly hit.

Its exports are pegged to be down by 40 per cent of last year’s shipments if such hike continues to increase.

Domestic forging companies exported their products worth Rs 3,000 crore during the last fiscal.

Under the current scenario, growth would take a back seat and struggle for survival would come as the first priority.

AIFI added the industry provides direct employment to about 2,00,000 people.