Lok Sabha Question No. 1763 (UNSTARRED), answered on 2021-12-08
Subject: Loss during Lockdown Period
Ministry: STEEL
Asked by: Arjunlal Meena

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO.1763

FOR ANSWER ON 08/12/2021

## LOSS DURING LOCKDOWN PERIOD

1763.  SHRI ARJUN LAL MEENA:

Will the Minister of STEEL be pleased to state:

- (a) whether the steel industry incurred huge loss during the COVID-19 lockdown period and if so, the details thereof; and
- (b) whether the price of Steel has increased recently and if so, the percentage of increase and the reasons therefor?

## ANSWER

(SHRI RAM CHANDRA PRASAD SINGH)

- (a) Following the covid-19 pandemic and resultant lockdown measures, there was disruption  in  supply  chains,  logistics,  availability  of  human  resources,  raw  material, working capital etc. leading to subdued production during initial period of lockdown. In the first quarter of FY 21, production declined to 17.263 million ton (mt) from 27.88 mt  in  corresponding  quarter  of  FY  20,  but  thereafter  production  increased  with gradual  unlocking  of  economy  and  in  second  quarter  of  FY  21,  the  production reached  to  26.70  mt  and  increased  further  in  subsequent  quarters.  The  details  of production and consumption of finished steel during last two financial years and this financial year are given as follows:-

(in Million Ton)

|             |   FY 2019-20 |   FY 2020-21 |   FY 2021-22 (April-October) |
|-------------|--------------|--------------|------------------------------|
| Production  |       102.62 |        96.2  |                        62.88 |
| Consumption |       100.17 |        94.89 |                        57.9  |

(Source: Joint Plant Committee)

- (b) Steel  is  a  deregulated  sector  where  prices  are  cyclic  in  nature  and  are  a function  of  demand  and  supply,  global  market  conditions,  trends  in  price  of  raw materials, logistic cost, power, and fuel cost etc. The details of average market price (retail) (excluding GST) of key items of iron and steel, indicating percentage change in recent months is as enclosed in annexure .

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## Annexure

| Average Market Price in ₹ per Ton (Retail) (excluding GST)   | Average Market Price in ₹ per Ton (Retail) (excluding GST)   | Average Market Price in ₹ per Ton (Retail) (excluding GST)   | Average Market Price in ₹ per Ton (Retail) (excluding GST)   | Average Market Price in ₹ per Ton (Retail) (excluding GST)   | Average Market Price in ₹ per Ton (Retail) (excluding GST)   | Average Market Price in ₹ per Ton (Retail) (excluding GST)   | Average Market Price in ₹ per Ton (Retail) (excluding GST)   | Average Market Price in ₹ per Ton (Retail) (excluding GST)   | Change in price Nov.- 21 over   |
|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|---------------------------------|
| Item                                                         | Apr.- 21                                                     | May- 21                                                      | Jun- 21                                                      | Jul.- 21                                                     | Aug.- 21                                                     | Sep.- 21                                                     | Oct.- 21                                                     | Nov.- 21                                                     | Apr-21                          |
| PIG IRON                                                     | 43413                                                        | 44299                                                        | 44928                                                        | 42992                                                        | 44396                                                        | 44735                                                        | 48053                                                        | 46625                                                        | 7%                              |
| PENCIL INGOTS                                                | 42055                                                        | 43479                                                        | 42695                                                        | 42017                                                        | 44235                                                        | 43627                                                        | 46794                                                        | 46237                                                        | 10%                             |
| WIRE RODS 8MM                                                | 50057                                                        | 51328                                                        | 51138                                                        | 50642                                                        | 51222                                                        | 51358                                                        | 54494                                                        | 55388                                                        | 11%                             |
| ROUNDS 12 MM                                                 | 49665                                                        | 51047                                                        | 50394                                                        | 50203                                                        | 51252                                                        | 50746                                                        | 56358                                                        | 55540                                                        | 12%                             |
| TMT 10 MM                                                    | 51919                                                        | 53021                                                        | 53055                                                        | 51081                                                        | 52269                                                        | 51873                                                        | 56871                                                        | 57314                                                        | 10%                             |
| PLATES 10 MM                                                 | 60530                                                        | 63621                                                        | 64843                                                        | 64032                                                        | 64710                                                        | 64337                                                        | 69864                                                        | 69852                                                        | 15%                             |
| H. R. COILS 2.00MM                                           | 62500                                                        | 66663                                                        | 67138                                                        | 65347                                                        | 65915                                                        | 64748                                                        | 70136                                                        | 71623                                                        | 15%                             |
| C. R. COILS 0.63MM                                           | 72900                                                        | 79508                                                        | 81301                                                        | 79013                                                        | 78140                                                        | 76148                                                        | 78165                                                        | 78860                                                        | 8%                              |
| G. P. SHEETS 0.63 MM                                         | 75674                                                        | 82913                                                        | 84528                                                        | 83856                                                        | 83044                                                        | 82432                                                        | 84513                                                        | 85237                                                        | 13%                             |

Source: Joint Plant Committee