Lok Sabha Question No. 1233 (UNSTARRED), answered on 2020-09-19
Subject: Decline in Steel Demand
Ministry: STEEL
Asked by: Kirron  Kher

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO.1233

FOR ANSWER ON 19/09/2020

## DECLINE IN STEEL DEMAND

## 1233.  SHRIMATI KIRRON KHER:

Will the Minister of STEEL be pleased to state:

- (a) whether the steel industry has seen a decline in the demand for steel in the ongoing financial year and if so, the details thereof;
- (b) whether  the  decline  in  demand  has  led  to  a  surplus  of  steel  and  if  so,  the details thereof;
- (c) whether the Government is exploring options to increase the export of steel to countries in Southeast Asia or Middle East; and
- (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

(SHRI DHARMENDRA PRADHAN)

- (a) The details of consumption of total finished steel (non-alloy and alloy/stainless) in India during current year i.e. April-August, 2020 and the corresponding period of last year are as following:-
- (b) As  the  availability  of  total  finished  steel  during  April-August,  2020  has  also decreased  as indicated below,  the decline in demand has not led to a surplus:-

| Item                                                                  | Total Finished Steel (alloy + non-alloy)                              | Total Finished Steel (alloy + non-alloy)                              | Total Finished Steel (alloy + non-alloy)                              |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|
|                                                                       | April- August 2020 (mt)*                                              | April- August 2019 (mt)                                               | %change*                                                              |
| Consumption                                                           | 26.41                                                                 | 42.54                                                                 | -37.9                                                                 |
| Source: Joint Plant Committee Report; mt=million tonnes; *Provisional | Source: Joint Plant Committee Report; mt=million tonnes; *Provisional | Source: Joint Plant Committee Report; mt=million tonnes; *Provisional | Source: Joint Plant Committee Report; mt=million tonnes; *Provisional |

| Item                                                                  | Total Finished Steel availability (alloys/stainless and non-alloy) from April- August 2020 (mt)*   |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
| a) Total Production                                                   | 29.05                                                                                              |
| b) Imports                                                            | 1.67                                                                                               |
| c) Exports                                                            | 5.68                                                                                               |
| Availability (a+b-c)                                                  | 25.04                                                                                              |
| Source: Joint Plant Committee Report; mt=million tonnes; *Provisional | Source: Joint Plant Committee Report; mt=million tonnes; *Provisional                              |

(c)&(d):  As Steel is a de-regulated sector, Steel companies take their own decisions based on commercial considerations and market dynamics, both for domestic as well as overseas trade. However, Government has taken various steps to boost export competitiveness viz.:-

- (i) Export  promotion  schemes  like  Merchandise  Exports  from India  Scheme (MEIS), Market Access Initiative, Export Promotion Council, Advance Authorization, Export Promotion of Capital Goods (EPCG) etc.
- (ii) Maintaining  very  low  import  duty  on  critical  inputs  like  coking  coal,  iron  ore, steel scrap, nickel etc.
- (iii) Promoting multi model logistics and enhancing use of inland waterways and coastal shipping to reduce logistics cost.
- (iv) Allocation of captive iron ore mines and focus on steel clusters to help steel sector become more competitive for enhanced exports.

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