Lok Sabha Question No. 3220 (UNSTARRED), answered on 2018-12-31
Subject: Steel Prices
Ministry: STEEL
Asked by: LAKHAN LAL SAHU

## LOK SABHA UNSTARRED QUESTION NO.3220 FOR ANSWER ON 31/12/2018

## STEEL PRICES

3220.  SHRI LAKHAN LAL SAHU:

Will the Minister of STEEL be pleased to state:

(a) whether there is any fluctuation in the domestic prices of steel during the last three  years  and  the  current  year  and  if  so,  the  details  thereof  and  the  reasons therefor;

- (b) whether there is an increase in the price of steel despite the low price of raw material in the domestic market and if so, the details thereof;
- (c) whether the profit of steel manufacturers has increased due to the hike in the price of steel and if so, the details thereof, Plant-wise;
- (d) whether the information of cartelization in the steel sector has caused/led to hike in the price of steel and if so, the details thereof; and
- (e) the corrective steps being taken by the Government to check the rise in prices of steel and to maintain balance in demand and supply?

## ANSWER

THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a) Yes,  Madam.    There  are  fluctuations  in  steel  prices  because  of  various reasons like erratic changes  in raw material prices, demand  fluctuations in international  and  domestic  markets  and  other  global  trade  factors.    Retail  prices (Delhi market) in respect of major steel items during the last three and the current year (upto November, 2018) are as under:-

| Domestic, annual, average, retail prices (Delhi market) (Rs. /tonne)   | Domestic, annual, average, retail prices (Delhi market) (Rs. /tonne)   | Domestic, annual, average, retail prices (Delhi market) (Rs. /tonne)   | Domestic, annual, average, retail prices (Delhi market) (Rs. /tonne)   | Domestic, annual, average, retail prices (Delhi market) (Rs. /tonne)   |
|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|
| Item                                                                   | 2015-16                                                                | 2016-17                                                                | 2017-18                                                                | Nov.18                                                                 |
| TMT 10mm                                                               | 36745                                                                  | 35237                                                                  | 42016                                                                  | 53737                                                                  |
| HR Coils 2.00mm                                                        | 35542                                                                  | 38825                                                                  | 46233                                                                  | 56286                                                                  |

Source: JPC

(b) Prices  of  key  raw  material  during  the  last  three  years,  2015-16,  2016-17, 2017-18  and  current  period  i.e.  November,  2018  is  shown  below  and  indicates  a decline in prices in 2015-16, 2016-17 (except Pig Iron) but a rise in prices thereafter for all:-

| Domestic, annual, average, retail prices (Delhi market) (Rs./t)   | Domestic, annual, average, retail prices (Delhi market) (Rs./t)   | Domestic, annual, average, retail prices (Delhi market) (Rs./t)   | Domestic, annual, average, retail prices (Delhi market) (Rs./t)   | Domestic, annual, average, retail prices (Delhi market) (Rs./t)   |
|-------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|
| Item                                                              | 2015-16                                                           | 2016-17                                                           | 2017-18                                                           | Nov.18                                                            |
| Pig Iron                                                          | 25094                                                             | 28958                                                             | 33966                                                             | 41064                                                             |
| Pencil Ingots                                                     | 25458                                                             | 25113                                                             | 32998                                                             | 42401                                                             |
| Melting Scrap HMS-II                                              | 19383                                                             | 17900                                                             | 24670                                                             | 30090                                                             |
| Sponge Iron (Coal)                                                | 18417                                                             | 15500                                                             | 22236                                                             | 30123                                                             |

Source: JPC

(c)to(e):  Steel  is  a  deregulated  sector.  The  role  of  the  Government  is  that  of  a facilitator only. As a facilitator, the government monitors the trends and developments in  the  domestic  market  with  regard  to  prices  and  announces  relevant  policy measures.  In  order  to  maintain  balance  in  demand  and  supply  side,  a  steel  Price Monitoring  Committee  has  been  constituted  by  the  Government  with  the  aim  to monitor  price  rationalization,  analyse  price  fluctuations  and  advice  all  concerned regarding any irrational price  behavior of steel commodity.  Moreover, the 'Make-inIndia' initiative of the Government focus on manufacturing and infrastructure, which promotes the demand and consumption of steel in the country. The Government on 08.05.2017 has notified the National Steel Policy, 2017 and the policy for providing preference  to  Domestically  Manufactured  Iron  &  Steel  (DMI&SP)  in  Government procurement.  These  policies  create  facilitative  environment  to  improve  domestic production of steel and maintain equilibrium between demand and supply of steel.

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