Lok Sabha Question No. 2184 (UNSTARRED), answered on 2021-03-08
Subject: Prices of Steel
Ministry: STEEL
Asked by: Ravneet Singh

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO.2184

FOR ANSWER ON 08/03/2021

## PRICES OF STEEL

## 2184.  SHRI RAVNEET SINGH BITTU:

Will the Minister of STEEL be pleased to state:

- (a) whether it is a fact that the steel companies have raised the prices of steel and more increases in prices are likely in future and if so, the details thereof;
- (b) whether the Government is aware that this rapid increase in prices of steel has adversely affected the user and raw materials industry in the country and if so, the details thereof;
- (c) whether it is a fact that due to increase in raw material prices of steel, copper and  aluminium  along  with  a  steep  rise  in  prices  of  solar  modules,  Solar  EPC companies have been very adversely affected;
- (d) whether the Government is taking any steps to offset the negative impact on the  user  and  raw  materials  industry  as  well  as  Solar  EPC  companies  of  this  rapid increase in steel, copper and aluminium prices; and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

(SHRI DHARMENDRA PRADHAN)

(a)to(e): Steel, being a deregulated sector, the domestic steel price is determined by various factors like demand and supply, trends in prices of raw materials and is also influenced  by  global  conditions.  The  important  factors  contributing  to  increase  in prices  of  steel  in  recent  months,  inter-alia,  include  the  demand-supply  mismatch following  Covid-19  pandemic  lockdown  and  gradual  unlocking.  The  solar  power developers in their interactions with the Ministry of New & Renewable Energy have indicated that there has been volatility in prices of inputs/ raw material for solar power plants including increase in prices of steel used in solar power projects. However, the Ministry of New & Renewable Energy has not received any formal report on the issue of solar EPC companies being adversely affected on this account.

The Government has taken various steps to ramp up production of iron ore and  steel  to  increase  their  domestic  availability  e.g.  grant  of  permission  to  Steel Authority of India Ltd (SAIL) to sell 25% fresh fines and 70 Million Ton dumps and tailings, accelerating auction of iron-ore fines by SAIL and early operationalization of forfeited working mines of Odisha by the State and Central PSUs etc. Further, in the Budget 2021-22, following measures have been announced:-

- (i) Reduction in Basic Customs Duty on Semis, certain flat products of non-alloy steel  and  alloy  steel,  long  products  of  non-alloy,  alloy  and  stainless  steel  to 7.5%.
- (ii) Reduction in Basic Custom Duty for specified period on Iron and Steel Scrap to 'Nil'.

- (iii) Reduction in  Basic  Custom  Duty  on  raw  material  for  manufacture  of  CRGO from 2.5% to 'Nil'.
- (iv) Temporary revocation of Anti-Dumping Duty (ADD)/Countervailing Duty (CVD) on  (a)  Straight  Length  Bars  and  Rods  (b)  High-Speed  Steel  of  Non-Cobalt Grade (c) Aluminum-Zinc coated flat rolled steel product (d) Cold rolled and hot rolled stainless steel products.
- (v) Revocation of CVD on Flat products of Stainless-Steel and discontinuation of ADD on Cold Rolled Flat Stainless-Steel Products.
- (vi) Reduction in Basic Customs Duty on Copper Scrap from 5% to 2.5%.

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