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The Minister of Steel and Mines Shri Narendra Singh Tomar said in a statement laid on the table of the Rajya Sabha today that with a crude steel production capacity of about 101 MT (Million Tonnes) in 2013-14, India produced about 87.67 MT of finished steel with an apparent consumption of about 74.09 MT.  In 2014-15 also with a capacity of about 110 MT,  India produced about 91.45 MT of finished steel with an apparent consumption of about 76.99 MT.  Thus India is capable of meeting almost the entire domestic steel demand.  India has witnessed about 75.5% increase (year-on-year) in imports of total steel (Alloy + Non Alloy) in 2014-15 & about 24% increase during April ’15 – Jan’16.  The jump in imports is largely on account of global steel glut. Due to this reason, steel is being exported by China and other countries, often at below cost of production.  Further, a small quantity of high quality steel, not manufactured locally, is also imported.

In order to protect domestic steel sector, the Government has taken various measures which have reduced the pace of growth of imports. While imports grew by about 75% in the Financial Year 2014-15, compared to the Financial Year 2013-14, the import growth has slowed to about 24% in the period April’15 – Jan’16, compared to the same period in the last Financial Year. Various steps taken in this regard are as follows:

 

(i)       To ensure that only quality steel is produced or imported, Government has            notified Steel & Steel Products (Quality Control) Orders, 2012 dated 12.03.2012 and Steel & Steel Products (Quality Control) Orders, 2015 dated 15.12.2015.

(ii)       To increase availability of Coal and Iron ore for the domestic steel industry:

(a)     Notified the Coal Mines (Special Provisions) Amendment Act, 2015 on 30.03.2015 to streamline coal block allocations.

(b)     Notified the Mines and Minerals (Development and Regulation) Amendment Act, 2015 on 27.03.2015 to streamline grant of Mining Leases.

(iii)      The Union Budget 2015-16 has raised peak rate of basic customs duty on both flat and             non-flat steel to 15% from 10%.

(iv)      Hiked import duty on  ingots & billets, alloy steel (flat & long), stainless steel (long) and non-alloy long products from 5 % to 7.5%  and non-alloy and other alloy flat products from 7.5% to 10%.  Import Duty was further revised in August, 2015 on flat steel from 10% to 12.5%, long steel from 7.5% to 10% and semi-finished steel from 7.5% to 10%.

(v)       In November 2014, Government issued instruction to ensure import of rebars strictly as per Steel Product Quality Control Order 2012, to block influx of cheap imports of boron added rebars.

(vi)      In June, 2015, an Anti-Dumping Duty for five years on imports of certain    variety of hot-rolled flat products of stainless steel from China ($ 309 per          tonne), Korea ($ 180 per tonne) and Malaysia ($ 316 per tonne).

(vii)     Imposed, in September 2015, a provisional Safeguard Duty of 20% on hot-rolled flat products of non-alloy and other alloy steel, in coils of a width of 600 mm or more, for a period of 200 days.

(viii)    Imposed, vide its notification dated 05.02.2016, the Minimum Import Price (MIP) condition on 173 steel products. Imports of items covered under this notification will not be allowed into the country below the notified price.

 

Details of Demand (as actual consumption)

(in thousand tons)

Category : Total Finished steel 2012-13 2013-14 2014-15 2015-16

(April-Dec)

Bars & Rods 29445 29420 31081 24,246
Structurals 5987 6857 7301 5,609
Rly. Materials 946 870 851 623
Plates 4891 4177 4770 3,508
H.R. Coils\Skelp 19817 19991 20544 15,506
H.R. Sheets 485 965 1113 1223
C.R. Sheets\coils 8807 8526 8295 6,048
GP\GC Sheets 5230 5428 5554 4,175
Elec. Sheets 541 462 541 328
Tinplate (incl. ww) 434 462 525 324
Tin Mill Black Plate (TMBP) 5 4 1 3
Pipes (Large Dia.) 2046 1963 1993 1,538
Tin free steel 82 68 87 66
Alloy and Stainless Steel 5861 6102 6758 5,942

 

 

Details of Supply (as actual production for sale)

 (in thousand tons)

Category : Total Finished steel 2012-13 2013-14 2014-15 2015-16

(April-Dec)

Bars & Rods 28795 29550 32251 24803
Structurals 5932 6896 7495 5715
Rly. Materials 937 887 835 621
Plates 4161 3896 4700 2943
H.R. Coils\Skelp 19391 20806 20205 13638
H.R. Sheets 556 920 1138 1218
C.R. Sheets\coils 7654 7722 7509 5216
GP\GC Sheets 6287 6898 6892 4902
Elec. Sheets 155 126 140 92
Tinplate (incl. ww) 301 344 354 237
Tin Mill Black Plate (TMBP) 5 3 0 0
Pipes (Large Dia.) 2007 1978 2094 1567
Tin free steel 16 12 0 0
Alloy and Stainless Steel 5484 7637 8544 6759

Source : JPC

 

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YSK

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