Lok Sabha Question No. 532 (UNSTARRED), answered on 2022-07-20
Subject: Steel as Raw Material
Ministry: STEEL
Asked by: Krupal Balaji Tumane, Omprakash Bhupalsinh alias Pawan Rajenimbalkar

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO.532

FOR ANSWER ON 20/07/2022

## STEEL AS RAW MATERIAL

532.   SHRI KRUPAL BALAJI TUMANE:

SHRI OMPRAKASH BHUPALSINH alias PAWAN RAJENIMBALKAR:

Will the Minister of STEEL be pleased to state:

- (a)  whether  engineering  goods  exporters  use  steel  as  a  raw  material  for  making goods for exports and if so, the details thereof;
- (b)  whether  as  a  result  of  high  cost  of  indegnious  steel,  India's  position  is  not competitive in down streaming engineering exports and if so, the details thereof;
- (c) whether indegnious steel manufacturers are earning huge profits from engineering exporters and if so, the details thereof;
- (d) whether there is any need to provide steel at cheaper rates to engineering goods exporters; and
- (e) if so, the steps taken/proposed to be taken to make steel available at cheap rates to engineering goods exporters?

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THE MINISTER OF STATE IN THE MINISTRY OF STEEL

## ANSWER

(SHRI FAGGAN SINGH KULASTE)

(a)&(b): Engineering  Exporters  use  several  steel  products  as  raw  material  to manufacture  products  for export purpose. These  include HR  Coil, CR  Coil, Galvanized Coil, Plates (flat rolled products) and Wire Rods, Bars, Structural (long products). Details of average prices of key steel items used in Engineering products in months of May'22 and June'22 are given below. From the price details provided below, it can be ascertained that the price of steel has reduced considerably in MayJune 2022 making Indian steel competitive.

| Average Market Price (Retail) (excluding GST)           | Average Market Price (Retail) (excluding GST)           | Average Market Price (Retail) (excluding GST)           |
|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|
| Item                                                    | June'22                                                 | May'22                                                  |
| Wire Rods 8 mm                                          | 57775                                                   | 65055                                                   |
| Rounds 12mm                                             | 57091                                                   | 63108                                                   |
| TMT 10 mm                                               | 59172                                                   | 66678                                                   |
| Plates 10mm                                             | 62309                                                   | 71182                                                   |
| H.R. Coils 2.00 mm                                      | 64629                                                   | 73591                                                   |
| C.R. Coils 0.63 mm                                      | 71877                                                   | 80261                                                   |
| G. P. Sheets 0.63 mm                                    | 78528                                                   | 87377                                                   |
| Source: Joint Plant Committee (JPC); Price in ₹ per Ton | Source: Joint Plant Committee (JPC); Price in ₹ per Ton | Source: Joint Plant Committee (JPC); Price in ₹ per Ton |

(c)to(e):  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. Government has taken various steps towards making raw material and steel available at reasonable prices, these include:

- (i) Mining and Mineral Policy reforms to enhance production/availability of iron ore, early operationalization of forfeited working mines of Odisha by the Steel and Central PSUs etc., and ramping up production and capacity utilization by steel producers.
- (ii) In  Budget  announcements  2021-22  and  2022-23,  Customs  Duty  has  been reduced uniformly to 7.5% on Semis, Flat and Long products of non-alloy, alloy and  stainless  steels.  Basic  Custom  Duty  (BCD)  on  steel  scrap  has  been exempted  upto  31.3.2023.  Anti-Dumping  Duties  (ADD)  and  Countervailing Duties (CVD) on steel products have also been revoked.
- (iii) Government has made further modifications in tariffs on raw materials of steel and  other  steel  products  vide  notification  dated  21.05.2022  to  control  the soaring steel prices. Import duty on Anthracite/Pulverized Coal Injection (PCI) Coal, Coke and Semicoke and Ferro-Nickel has been reduced to zero. Export duty on Iron ores/ concentrates and iron ore pellets has been raised to 50% and 45% respectively. In addition, 15% export duty has been imposed on pig iron and several steel products.

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