Lok Sabha Question No. 129 (UNSTARRED), answered on 2021-07-19
Subject: Price of Steel Products
Ministry: STEEL
Asked by: Sanjay Haribhau Jadhav, D. Ravikumar, Bhavana Gawali (Patil), Hemant Patil

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO.129 FOR ANSWER ON 19/07/2021

## PRICE OF STEEL PRODUCTS

129. SHRI SANJAY JADHAV: SHRIMATI BHAVANA PUNDALIKRAO GAWALI: SHRI HEMANT SRIRAM PATIL:

Will the Minister of STEEL be pleased to state:

- (a) whether the steel producing companies in the country have increased price of their  products a number of times during the last two years and if so, the details of quantum of increase of each product;
- (b) whether the public sector companies have reduced the rate of rebate recently and thereby have affected the prices ;
- (c) if so, the details thereof along with the reasons therefor; and
- (d) whether the Government is taking any concrete steps so that common people are not affected by the increase of prices?

## ANSWER

(SHRI RAM CHANDRA PRASAD SINGH)

(a)to(c):  Steel  is  a  deregulated  sector  where  prices  are  a  function  of  demand  and supply,  global  market  conditions,  trends  in  price  of  raw  materials,  logistics  cost, power  and  fuel  cost  etc.  In  order  to  remain  competitive  in  market,  public  sector companies take commercial decisions like fixing of steel prices, discounts / rebates in tune with the market trends. The details of market price (retail) of key items of iron and steel during last two year i.e. 2019-20 and 2020-21 are given in Annexure-I.

- (d) The  Government  has  taken  various  steps  to  increase  availability  of  steel, which, inter-alia, include Mining and Mineral Policy reforms to enhance production / availability of iron ore, early operationalization of forfeited working mines of Odisha by the State and Central PSUs etc., and 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,  to  provide  relief  to  metal  re-cyclers,  mostly  MSMEs,  BCD  on  steel scrap  has  been  exempted  for  a  period  up  to  31 st March,  2022.  In  addition  to  the above, ADD and CVD on certain steel products have also been revoked / temporarily revoked.

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## Annexure-I

## Market price (retail) of key items of iron and steel during last two years

(Price in ₹ per Ton)

| Month   | HR Coil (2 mm)   | HR Coil (2 mm)   | CR Coil (0.63 mm)   | CR Coil (0.63 mm)   | TMT (10 mm)   | TMT (10 mm)   | GP Sheets (0.63 mm)   | GP Sheets (0.63 mm)   |
|---------|------------------|------------------|---------------------|---------------------|---------------|---------------|-----------------------|-----------------------|
| Month   | 19-20            | 20-21            | 19-20               | 20-21               | 19-20         | 20-21         | 19-20                 | 20-21                 |
| Apr.    | 44172            | 38583            | 50896               | 43854               | 41318         | 35729         | 55284                 | 48941                 |
| May     | 43566            | 38024            | 49540               | 43148               | 40417         | 35732         | 55309                 | 48950                 |
| Jun.    | 42773            | 38343            | 48926               | 43360               | 39742         | 35934         | 54784                 | 48737                 |
| July.   | 41040            | 37735            | 45956               | 42883               | 37928         | 34780         | 53972                 | 49102                 |
| Aug.    | 39258            | 40307            | 44131               | 45468               | 37064         | 37523         | 51833                 | 50644                 |
| Sept.   | 38303            | 41958            | 42631               | 47415               | 36278         | 38006         | 50869                 | 52343                 |
| Oct.    | 36890            | 44718            | 41697               | 51324               | 35538         | 38352         | 49273                 | 55244                 |
| Nov.    | 36358            | 45462            | 41206               | 51962               | 35464         | 39398         | 48360                 | 55771                 |
| Dec.    | 37765            | 52638            | 42523               | 58981               | 35381         | 43379         | 48055                 | 61903                 |
| Jan.    | 39962            | 59155            | 43242               | 67165               | 37108         | 50737         | 50657                 | 67873                 |
| Feb.    | 40900            | 54714            | 44845               | 63642               | 39021         | 47466         | 50943                 | 64797                 |
| Mar.    | 39786            | 54983            | 44970               | 64727               | 36867         | 48655         | 50403                 | 65214                 |

*Provisional, Source: Joint Plant Committee (JPC)