Lok Sabha Question No. 2282 (UNSTARRED), answered on 2021-08-02
Subject: Demand and Supply of Iron Ore and Steel
Ministry: STEEL
Asked by: Ramapati Ram Tripathi

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO.2282

FOR ANSWER ON 02/08/2021

## DEMAND AND SUPPLY OF IRON ORE AND STEEL

## 2282.  DR. RAMAPATI RAM TRIPATHI:

Will the Minister of STEEL be pleased to state:

- (a) the total quantity of iron ores and steel produced during the last three years and the current year along with per capita consumption of steel in the country;
- (b) the estimated demand and supply of iron ores and steel for public and private sectors separately in the next three years;
- (c) the  steps  taken  /  proposed  to  be  taken  by  the  Government  to  meet  the estimated demand of the same;
- (d) whether there has been an increase in import of iron ores during the last three years and the current year and if so, the details thereof;
- (e) if not, the reasons therefor; and
- (f) whether the cost of steel in the country is more in comparison to that in other steel producing countries and if so, the reasons therefor along with the efforts made by the Government in this regard?

## ANSWER

(SHRI RAM CHANDRA PRASAD SINGH)

- (a) The total quantity of iron ore and steel produced during the last three years and the current year along with per capita consumption of steel in the country are as follows:-
- (b) The estimated production and capacity of crude steel and estimated demand and supply of iron ore in the country for the current year and next three years are as follows:-

| Items                        |   2018-19 |   2019-20 |   2020-21 | 2021-22   |
|------------------------------|-----------|-----------|-----------|-----------|
| Iron Ore (in MT)             |    206.49 |    246.08 |    204.28 | 46.56*    |
| Crude Steel (in MT)          |    110.92 |    109.14 |    103.54 | 27.80**   |
| Consumption of Steel (in Kg) |     74.4  |     74.7  |     70    | ---       |

[MT = Million tonnes, Kg = Kilograms, *April-May, 2021, **April-June, 2021]

[Source: IBM/JPC]

(in million tonnes)

| Item                      |   2021-22 |   2022-23 |   2023-24 |   2024-25 |
|---------------------------|-----------|-----------|-----------|-----------|
| Production of crude steel |    113    |    121.5  |    130.6  |    140.4  |
| Capacity of crude steel   |    158.33 |    165.19 |    170.51 |    172.58 |
| Demand of Iron ore        |    181    |    197    |    211    |    227    |
| Supply of Iron ore        |    250    |    255    |    260    |    277    |

[Source: JPC]

(c) The Government has taken various steps to increase availability of iron ore and  steel  which  include,  inter-alia,  Mining  and  Mineral  Policy  reforms  to  ensure enhanced production and availability of iron ore, early operationalization of forfeited working  mines  of  Odisha  by  the  State/Central  PSUs  etc.,  besides  ramping  up production  and  capacity  utilization  by  steel  producers.  In  Union  Budget  2021-22, Customs Duty has been reduced uniformly to 7.5% on Semis, Flat and Long products of non-alloy, alloy and stainless steels. Further, Basic Custom Duty (BCD) on steel scrap has been exempted for a period up to 31 st March, 2022.

(d)&(e): The import of iron ore during the last three years and the current year is as follows:-

(in million tonnes)

| Items                | 2018-19                |   2019-20 | 2020-21   | 2021-22   |
|----------------------|------------------------|-----------|-----------|-----------|
| Import of Iron Ore   | 12.804                 |      1.24 | 0.760     | 0.0009*   |
| [Source: DGFT & JPC] | *between April - June, |   2021    |           |           |

(f) The comparative statement of production cost of steel in India vis a vis other major steel producing countries is as follows:-

## Average Cost of Finished Steel in 2018 (US$/tonne)

| Items         | Brazil   | China   | CIS    | W. Europe   | India   | Japan   | Global Average   |
|---------------|----------|---------|--------|-------------|---------|---------|------------------|
| Raw materials | 289      | 351     | 263    | 389         | 307     | 379     | 330              |
| Labour        | 60       | 84      | 27     | 115         | 65      | 144     | 89               |
| Other         | 184      | 155     | 164    | 186         | 171     | 188     | 171              |
| Energy        | 83       | 99      | 35     | 125         | 93      | 68      | 74               |
| Energy Credit | (-) 88   | (-) 87  | (-) 75 | (-) 116     | (-) 122 | (-) 81  | (-) 83           |
| Total         | 528      | 602     | 414    | 699         | 514     | 698     | 581              |

[Source: WSD Steel Strategist #44 March, 2019-operating cost for CR coils]

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