Lok Sabha Question No. 1200 (UNSTARRED), answered on 2019-02-11
Subject: Steel Prices
Ministry: STEEL
Asked by: CHINTAMANI MALVIYA, ALOK SANJAR

## STEEL PRICES

1200.  PROF. CHINTAMANI MALVIYA: SHRI ALOK SANJAR:

Will the Minister of STEEL be pleased to state:

- (a) whether prices of steel in the country are increasing continuously;

(b) if so, the details thereof including the average market price during each of the last three years and current year and the reasons therefor;

(c) the  details  of  actual  increase  of  prices  of  materials  utilized  for  production  of steel in the country during the said period;

(d) whether the Government is contemplating to ban the export of steel from the country to control the prices of steel; and

(e) if  so,  the  details  thereof  along with the other steps taken/being taken by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a)&(b):  No,  Madam.  There  is  no  continuous  upward  trend  during  each  of  the  last three years and current year.  It may be observed that prices fell in the initial period, from  April,  2015  to  January,  2016,  before  recovering  again.  The  prices  then consolidated  and  rose  till  March,  2018.    Subsequent  to  that,  the  prices  showed  a mixed trend before peaking in September, 2018.  Prices have shown a downward trend since then till January, 2019.

The monthly retail price for some steel items in the Mumbai market for the last three completed financial years and the ongoing current financial year are given in the table below:-

|         | Mumbai Market Retail Price All value in Rs. / Tonne   | Mumbai Market Retail Price All value in Rs. / Tonne   | Mumbai Market Retail Price All value in Rs. / Tonne   | Mumbai Market Retail Price All value in Rs. / Tonne   | Mumbai Market Retail Price All value in Rs. / Tonne   | Mumbai Market Retail Price All value in Rs. / Tonne   | Mumbai Market Retail Price All value in Rs. / Tonne   |
|---------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|
| Month   | TMT                                                   | Wire Rods                                             | Rounds                                                | Plates                                                | HR Coils                                              | CR Coils                                              | GP Sheets                                             |
| MUMBAI  | 10mm                                                  | 8mm                                                   | 16mm                                                  | 12mm                                                  | 2.5mm                                                 | 0.63mm                                                | 0.63mm                                                |
| Apr.-15 | 39581                                                 | 38260                                                 | 40097                                                 | 38435                                                 | 39506                                                 | 43488                                                 | 48957                                                 |
| May-15  | 39034                                                 | 39999                                                 | 41721                                                 | 38719                                                 | 39638                                                 | 45019                                                 | 49088                                                 |
| Jun.-15 | 38379                                                 | 35741                                                 | 36777                                                 | 36203                                                 | 36575                                                 | 41169                                                 | 48825                                                 |
| Jul.-15 | 36623                                                 | 32993                                                 | 35085                                                 | 34694                                                 | 34694                                                 | 39375                                                 | 46988                                                 |
| Aug.-15 | 35190                                                 | 32304                                                 | 33562                                                 | 33206                                                 | 33425                                                 | 38063                                                 | 46988                                                 |
| Sep.-15 | 34469                                                 | 32517                                                 | 38161                                                 | 35788                                                 | 35919                                                 | 38938                                                 | 48169                                                 |
| Oct.-15 | 33872                                                 | 31139                                                 | 35438                                                 | 34497                                                 | 35350                                                 | 38675                                                 | 45675                                                 |
| Nov.-15 | 31661                                                 | 32780                                                 | 33567                                                 | 31369                                                 | 32200                                                 | 37275                                                 | 45938                                                 |
| Dec.-15 | 30633                                                 | 32189                                                 | 34683                                                 | 32419                                                 | 32463                                                 | 35044                                                 | 46594                                                 |
| Jan.-16 | 31308                                                 | 29252                                                 | 31074                                                 | 29225                                                 | 30319                                                 | 34038                                                 | 42525                                                 |
| Feb.-16 | 33673                                                 | 37505                                                 | 36685                                                 | 33075                                                 | 33513                                                 | 36750                                                 | 44100                                                 |
| Mar.-16 | 35145                                                 | 36635                                                 | 36160                                                 | 34322                                                 | 34388                                                 | 38588                                                 | 46725                                                 |
| Apr.-16 | 35078                                                 | 36127                                                 | 35935                                                 | 34388                                                 | 35656                                                 | 38850                                                 | 42657                                                 |
| May-16  | 34821                                                 | 40261                                                 | 39572                                                 | 35438                                                 | 35831                                                 | 39900                                                 | 42132                                                 |
| Jun.-16 | 33733                                                 | 34421                                                 | 33513                                                 | 34344                                                 | 34431                                                 | 38675                                                 | 42394                                                 |

| Jul.-16                                                                                                                                             | 31095                                                                                                                                               | 33206                                                                                                                                               | 33031                                                                                                                                               | 33885                                                                                                                                               | 34672                                                                                                                                               | 39025                                                                                                                                               | 43050                                                                                                                                               |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| Aug.-16                                                                                                                                             | 29478                                                                                                                                               | 35605                                                                                                                                               | 30686                                                                                                                                               | 34895                                                                                                                                               | 35122                                                                                                                                               | 38987                                                                                                                                               | 42919                                                                                                                                               |
| Sep.-16                                                                                                                                             | 31536                                                                                                                                               | 36912                                                                                                                                               | 33763                                                                                                                                               | 35858                                                                                                                                               | 37382                                                                                                                                               | 39900                                                                                                                                               | 43313                                                                                                                                               |
| Oct.-16                                                                                                                                             | 32447                                                                                                                                               | 34104                                                                                                                                               | 35927                                                                                                                                               | 37538                                                                                                                                               | 37538                                                                                                                                               | 41475                                                                                                                                               | 43313                                                                                                                                               |
| Nov.-16                                                                                                                                             | 33685                                                                                                                                               | 39428                                                                                                                                               | 35007                                                                                                                                               | 38566                                                                                                                                               | 38270                                                                                                                                               | 43108                                                                                                                                               | 45938                                                                                                                                               |
| Dec.-16                                                                                                                                             | 34926                                                                                                                                               | 43638                                                                                                                                               | 36735                                                                                                                                               | 43339                                                                                                                                               | 43739                                                                                                                                               | 47602                                                                                                                                               | 55125                                                                                                                                               |
| Jan.-17                                                                                                                                             | 38525                                                                                                                                               | 44323                                                                                                                                               | 34265                                                                                                                                               | 43824                                                                                                                                               | 44264                                                                                                                                               | 48320                                                                                                                                               | 52238                                                                                                                                               |
| Feb.-17                                                                                                                                             | 35298                                                                                                                                               | 36601                                                                                                                                               | 33692                                                                                                                                               | 42166                                                                                                                                               | 42327                                                                                                                                               | 46843                                                                                                                                               | 52713                                                                                                                                               |
| Mar.-17                                                                                                                                             | 38098                                                                                                                                               | 40478                                                                                                                                               | 38098                                                                                                                                               | 41921                                                                                                                                               | 41783                                                                                                                                               | 47931                                                                                                                                               | 50925                                                                                                                                               |
| Apr.-17                                                                                                                                             | 39631                                                                                                                                               | 43057                                                                                                                                               | 43121                                                                                                                                               | 42326                                                                                                                                               | 42725                                                                                                                                               | 47057                                                                                                                                               | 52894                                                                                                                                               |
| May-17                                                                                                                                              | 37891                                                                                                                                               | 41670                                                                                                                                               | 42378                                                                                                                                               | 41033                                                                                                                                               | 40987                                                                                                                                               | 45617                                                                                                                                               | 51975                                                                                                                                               |
| Jun.-17                                                                                                                                             | 36428                                                                                                                                               | 42783                                                                                                                                               | 42099                                                                                                                                               | 41278                                                                                                                                               | 41132                                                                                                                                               | 46064                                                                                                                                               | 51319                                                                                                                                               |
| Jul.-17                                                                                                                                             | 39685                                                                                                                                               | 43955                                                                                                                                               | 43692                                                                                                                                               | 42178                                                                                                                                               | 42047                                                                                                                                               | 46488                                                                                                                                               | 52374                                                                                                                                               |
| Aug.-17                                                                                                                                             | 38863                                                                                                                                               | 44200                                                                                                                                               | 42010                                                                                                                                               | 44159                                                                                                                                               | 44270                                                                                                                                               | 48795                                                                                                                                               | 50003                                                                                                                                               |
| Sep.-17                                                                                                                                             | 38081                                                                                                                                               | 44727                                                                                                                                               | 41014                                                                                                                                               | 44557                                                                                                                                               | 44237                                                                                                                                               | 51389                                                                                                                                               | 54575                                                                                                                                               |
| Oct.-17                                                                                                                                             | 37380                                                                                                                                               | 46132                                                                                                                                               | 40593                                                                                                                                               | 43943                                                                                                                                               | 43806                                                                                                                                               | 47200                                                                                                                                               | 50150                                                                                                                                               |
| Nov.-17                                                                                                                                             | 38253                                                                                                                                               | 44055                                                                                                                                               | 39179                                                                                                                                               | 43695                                                                                                                                               | 43920                                                                                                                                               | 49068                                                                                                                                               | 54870                                                                                                                                               |
| Dec.-17                                                                                                                                             | 41637                                                                                                                                               | 48120                                                                                                                                               | 44308                                                                                                                                               | 44250                                                                                                                                               | 43808                                                                                                                                               | 48380                                                                                                                                               | 50003                                                                                                                                               |
| Jan.-18                                                                                                                                             | 47191                                                                                                                                               | 46852                                                                                                                                               | 44296                                                                                                                                               | 46020                                                                                                                                               | 46595                                                                                                                                               | 52018                                                                                                                                               | 53100                                                                                                                                               |
| Feb.-18                                                                                                                                             | 49140                                                                                                                                               | 48339                                                                                                                                               | 47333                                                                                                                                               | 51295                                                                                                                                               | 51778                                                                                                                                               | 55860                                                                                                                                               | 59590                                                                                                                                               |
| Mar.-18                                                                                                                                             | 48758                                                                                                                                               | 48710                                                                                                                                               | 46822                                                                                                                                               | 52962                                                                                                                                               | 57378                                                                                                                                               | 62304                                                                                                                                               | 64248                                                                                                                                               |
| Apr.-18                                                                                                                                             | 49416                                                                                                                                               | 48557                                                                                                                                               | 48970                                                                                                                                               | 54870                                                                                                                                               | 56640                                                                                                                                               | 61360                                                                                                                                               | 64055                                                                                                                                               |
| May.-18                                                                                                                                             | 49949                                                                                                                                               | 49147                                                                                                                                               | 48528                                                                                                                                               | 53513                                                                                                                                               | 54776                                                                                                                                               | 61793                                                                                                                                               | 65584                                                                                                                                               |
| Jun.-18                                                                                                                                             | 48998                                                                                                                                               | 49672                                                                                                                                               | 50593                                                                                                                                               | 55062                                                                                                                                               | 54351                                                                                                                                               | 64113                                                                                                                                               | 66750                                                                                                                                               |
| Jul.-18                                                                                                                                             | 45472                                                                                                                                               | 49519                                                                                                                                               | 51404                                                                                                                                               | 54900                                                                                                                                               | 54737                                                                                                                                               | 63130                                                                                                                                               | 66051                                                                                                                                               |
| Aug.-18                                                                                                                                             | 47233                                                                                                                                               | 49672                                                                                                                                               | 51625                                                                                                                                               | 55362                                                                                                                                               | 55554                                                                                                                                               | 64900                                                                                                                                               | 65584                                                                                                                                               |
| Sep.-18                                                                                                                                             | 50362                                                                                                                                               | 49300                                                                                                                                               | 51183                                                                                                                                               | 56648                                                                                                                                               | 57569                                                                                                                                               | 64310                                                                                                                                               | 66051                                                                                                                                               |
| Oct.-18                                                                                                                                             | 47880                                                                                                                                               | 49082                                                                                                                                               | 52805                                                                                                                                               | 56410                                                                                                                                               | 56170                                                                                                                                               | 64330                                                                                                                                               | 66438                                                                                                                                               |
| Nov.-18                                                                                                                                             | 48224                                                                                                                                               | 48710                                                                                                                                               | 50357                                                                                                                                               | 56777                                                                                                                                               | 56362                                                                                                                                               | 63720                                                                                                                                               | 64040                                                                                                                                               |
| Dec.-18                                                                                                                                             | 45595                                                                                                                                               | 48120                                                                                                                                               | 49796                                                                                                                                               | 54245                                                                                                                                               | 54189                                                                                                                                               | 61360                                                                                                                                               | 61765                                                                                                                                               |
| Jan.-19                                                                                                                                             | 45137                                                                                                                                               | 48120                                                                                                                                               | 50003                                                                                                                                               | 50655                                                                                                                                               | 50328                                                                                                                                               | 57460                                                                                                                                               | 57910                                                                                                                                               |
| Source: Joint Plant Committee(JPC) Note: Prices are collected as on 15th day of each month. Prices are inclusive of excise duty and sales tax / GST | Source: Joint Plant Committee(JPC) Note: Prices are collected as on 15th day of each month. Prices are inclusive of excise duty and sales tax / GST | Source: Joint Plant Committee(JPC) Note: Prices are collected as on 15th day of each month. Prices are inclusive of excise duty and sales tax / GST | Source: Joint Plant Committee(JPC) Note: Prices are collected as on 15th day of each month. Prices are inclusive of excise duty and sales tax / GST | Source: Joint Plant Committee(JPC) Note: Prices are collected as on 15th day of each month. Prices are inclusive of excise duty and sales tax / GST | Source: Joint Plant Committee(JPC) Note: Prices are collected as on 15th day of each month. Prices are inclusive of excise duty and sales tax / GST | Source: Joint Plant Committee(JPC) Note: Prices are collected as on 15th day of each month. Prices are inclusive of excise duty and sales tax / GST | Source: Joint Plant Committee(JPC) Note: Prices are collected as on 15th day of each month. Prices are inclusive of excise duty and sales tax / GST |

(c) Steel is a deregulated sector and procurement of raw materials are done by individual  steel  companies  taking  into  account  market  dynamics  and  commercial considerations. The prices of some major raw materials are given as under which are indicative in nature and provide the broad contours of price flows in the international and domestic market:-

| Raw Material Prices in $/tonne   | Raw Material Prices in $/tonne        | Raw Material Prices in $/tonne   | Raw Material Prices in $/tonne   | Raw Material Prices in $/tonne   |
|----------------------------------|---------------------------------------|----------------------------------|----------------------------------|----------------------------------|
| Month                            | Shredded Scrap (FOB) Rotterdam Export | Australia Hard Coking Coal       | CFR China - Iron Ore 62% fines   | NMDC Lump Price Rs../T           |
| Apr.-15                          | 249.0                                 | 89.4                             | 48.0                             | 3050                             |
| May-15                           | 269.0                                 | 82.5                             | 59.0                             | 3050                             |
| Jun.-15                          | 258.0                                 | 87.9                             | 57.0                             | 3050                             |

| Jul.-15   | 245.0       | 83.9        | 56.0      | 2950      |
|-----------|-------------|-------------|-----------|-----------|
| Aug.-15   | 236.5       | 83.5        | 54.0      | 2950      |
| Sep.-15   | 217.5       | 80.3        | 57.0      | 2950      |
| Oct.-15   | 178.5       | 78.7        | 53.0      | 2500      |
| Nov.-15   | 189.0       | 73.7        | 50.0      | 2100      |
| Dec.-15   | 186.0       | 74.9        | 36.0      | 1800      |
| Jan.-16   | 182.0       | 76.0        | 42.0      | 1800      |
| Feb.-16   | 175.5       | 74.4        | 41.0      | 1800      |
| Mar.-16   | 204.0       | 79.1        | 41.0      | 1950      |
| Apr.-16   | 258.0       | 92.9        | 53.0      | 2100      |
| May.-16   | 298.0       | 90.7        | 59.0      | 2000      |
| Jun.-16   | 221.0       | 90.5        | 60.0      | 1800      |
| Jul.-16   | 211.0       | 96.2        | 62.0      | 1700      |
| Aug.-16   | 219.0       | 115.7       | 66.0      | 1700      |
| Sep.-16   | 212.0       | 194.0       | 56.0      | 1700      |
| Oct.-16   | 215.0       | 234.1       | 57.0      | 2100      |
| Nov.-16   | 256.5       | 300.7       | 78.0      | 2100      |
| Dec.-16   | 273.0       | 262.0       | 79.0      | 2100      |
| Jan.-17   | 266.5       | 185.5       | 81.0      | 2225      |
| Feb.-17   | 256.0       | 162.3       | 92.0      | 2325      |
| Mar.-17   | 272.5       | 158.3       | 88.0      | 2425      |
| Apr.-17   | 262.0       | 260.2       | 68.0      | 2425      |
| May.-17   | 262.0       | 171.1       | 61.0      | 2425      |
| Jun.-17   | 270.0       | 146.5       | 55.0      | 2425      |
| Jul.-17   | 294.4       | 166.3       | 66.0      | 2225      |
| Aug.-17   | 337.8       | 196.9       | 74.0      | 2225      |
| Sep.-17   | 325.8       | 203.5       | 72.0      | 2400      |
| Oct.-17   | 288.1       | 182.2       | 63.0      | 2300      |
| Nov.-17   | 296.4       | 192.0       | 63.0      | 2300      |
| Dec.-17   | 337.9       | 237.3       | 72.0      | 2600      |
| Jan.-18   | 348.7       | 239.0       | 77.0      | 3100      |
| Feb.-18   | 337.5       | 229.1       | 78.0      | 3100      |
| Mar.-18   | 359.5       | 216.9       | 72.0      | 3000      |
| Apr.-18   | 344.0       | 190.1       | 64.0      | 2900      |
| May-18    | 335.8       | 184.8       | 67.0      | 3050      |
| Jun.-18   | 339.2       | 198.5       | 68.0      | 3050      |
| Jul.-18   | 328.0       | 185.0       | 64.0      | 3200      |
| Aug.-18   | 305.5       | 182.2       | 67.0      | 3350      |
| Sep.-18   | 307.5       | 199.3       | 68.0      | 3550      |
| Oct.-18   | 313.7       | 217.1       | 69.0      | 3850      |
| Nov.-18   | 319.3 284.2 | 220.8 227.3 | 75.1 69.9 | 3850 3250 |
| Dec.-18   | 275.6       | 198.0       | 75.4      | 2900      |
| Jan.-19   |             |             |           |           |

Contd…..4/-

(d)&(e): Steel sector being a deregulated sector, the Government does not intervene in  the  pricing  decisions  of  the  steel  companies.  Consequently,  the  domestic  steel prices  are  market  driven  and  depend  on  the  demand-supply  scenario  and  the intensity  of  competition.The  government  is  not  contemplating  any  ban  on  steel exports.

However, the Ministry of Steel is taking steps to make the raw materials like iron ore, coking coal and natural gas available at affordable prices, so that the steel companies  can  become  globally  competitive.  The  Government  is  also  trying  to encourage private players and CPSEs to go for overseas asset acquisitions for raw material securitization. The Government has released the National Steel Policy 2017, which had laid down the broad roadmap for encouraging long term growth for the Indian steel industry, both on demand  and  supply sides, by 2030-31. The Government has also implemented the preference to Domestically Manufactured Iron &  Steel  Products  (DMI&SP)  Policy  which  mandates  a  minimum  domestic  value addition of 15% on the imported input steel to be eligible for big ticket Government procurements and tenders. There is also the 'Make-in-India' programme, which aims to provide an impetus to the manufacturing and mining sector of the country through various policy initiatives and incentives which are expected to benefit the domestic steel industry.

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