Lok Sabha Question No. 2162 (UNSTARRED), answered on 2018-12-24
Subject: Steel Consumption
Ministry: STEEL
Asked by: A. ARUNMOZHITHEVAN

## LOK SABHA UNSTARRED QUESTION NO.2162 FOR ANSWER ON 24/12/2018

## STEEL CONSUMPTION

2162.  SHRI A. ARUNMOZHITHEVAN:

Will the Minister of STEEL be pleased to state:

- (a) whether it is a fact that the Steel sector which is on a consolidation mode now  under  the  IBC  process  amidst  strong  domestic  demand,  is  unlikely  to witness any green field expansion as mill owners are likely to go in for brown field expansion at least for the next half a decade or so and if so, the details thereof;
- (b) whether it is also true that the domestic steel demand touched 91 million tonnes in fiscal 2018, making the country the third largest consumer of the alloy in the world and if so, the details thereof; and
- (c) whether it is also true that the demand is expected to be quite robust at nearly 7-8 per cent in the coming year and if so, the details thereof?

## ANSWER

THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

- (a) Steel is a de-regulated sector. Government plays the role of a facilitator. The  decision  on  expansion,  either  by  green  field  or  brown  field  process  is prerogative of the mill owners and their assessment of the commercial success of such ventures depends on as and when they wish to execute the same.  The impact  of  consolidation  of  the  industry  through  IBC  process  on  investment  in green field project cannot be assessed in a short run.
- (b) The consumption of total finished steel in the country during fiscal 2018 i.e.  2017-18 was 90.71 million tonnes (Source: Joint Plant Committee).

Details regarding India was 3 rd largest finished steel consumer in the world is given in Annexure-I .

- (c) The  consumption  of  finished  steel  has  grown  at  7.9%  in  the  first  seven months  of  the  current  fiscal  2018-19.  However,  the  market  is  volatile  and undergoes cyclical change. Therefore, predicting at 7-8 percent growth rate for the  coming  year  will  depend  on  the  performance  of  the  macro  economic fundamentals  in  the  economy.  The  details  regarding  consumption  growth  are given in Annexure-II .

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Annexure-I ANNEXURE-I  AS  REFERRED  TO  REPLY  TO  PART  (b)  OF  LOK  SABHA

UNSTARED QUESTION NO. 2162 FOR ANSWER ON 24-12-2018.

Major finished steel consumer in the world

| Top 10 finished steel consumers in the world, 2017               | Top 10 finished steel consumers in the world, 2017               | Top 10 finished steel consumers in the world, 2017               |
|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|
| Rank                                                             | Country                                                          | Qty. (mt)                                                        |
| 1                                                                | China                                                            | 736.8                                                            |
| 2                                                                | USA                                                              | 97.7                                                             |
| 3                                                                | India                                                            | 88.7                                                             |
| 4                                                                | Japan                                                            | 64.4                                                             |
| 5                                                                | South Korea                                                      | 56.4                                                             |
| 6                                                                | Germany                                                          | 41.0                                                             |
| 7                                                                | Russia                                                           | 40.6                                                             |
| 8                                                                | Turkey                                                           | 36.1                                                             |
| 9                                                                | Mexico                                                           | 26.4                                                             |
| 10                                                               | Italy                                                            | 24.6                                                             |
| Total: Top 10                                                    | Total: Top 10                                                    | 1212.7                                                           |
| World                                                            | World                                                            | 1595.4                                                           |
| Source: world steel; provisional except India; mt=million tonnes | Source: world steel; provisional except India; mt=million tonnes | Source: world steel; provisional except India; mt=million tonnes |

Annexure-II

ANNEXURE-II  AS  REFERRED  TO  REPLY  TO  PART  (c)  OF  LOK  SABHA UNSTARED QUESTION NO. 2162 FOR ANSWER ON 24-12-2018.

| Year             | Real Consumption in Thousand tonnes   | Growth Rate Percentage   |
|------------------|---------------------------------------|--------------------------|
| 2017-18          | 90708                                 | 7.9                      |
| Apr. - Oct. 2017 | 51904                                 |                          |
| Apr. - Oct. 2018 | 55992                                 | 7.9                      |
| Source: JPC      | Source: JPC                           | Source: JPC              |

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