Lok Sabha Question No. 1688 (UNSTARRED), answered on 2023-12-13
Subject: Hike in Steel Prices
Ministry: STEEL
Asked by: D. M. Kathir Anand

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO.  1688 FOR ANSWER ON 13/12/2023

## HIKE IN STEEL PRICES

1688. SHRI D.M. KATHIR ANAND:

Will the Minister of STEEL  be pleased to state:

- (a)  whether  it  is  a  fact  that  international  and  domestic  Steel  prices  witnessed  an unprecedented hike in the last two years;
- (b) if so, the details thereof and the measures taken by the Government to reduce the domestic prices of iron and steel in the country;
- (c) whether the Government has taken any steps to reduce the dependence of imported steel and control prices of Iron and Steel for both domestic and industrial use and if so, the details thereof;
- (d) the steps taken by the Government to sign a MoU with International Iron and Steel conglomerates to meet the increasing demands for iron and steel in the country; and
- (e) the quantity of Iron produced from recycling of Iron Scraps collected from various industries and the status of production of recycled Iron?

## ANSWER

THE MINISTER OF STATE IN THE                        (SHRI FAGGAN SINGH KULASTE)

MINISTRY OF STEEL

(a)&(b): Average domestic market price of key items of iron and steel for November 2023 indicate a decline when compared to November 2021 as given below:

| Item                                | Average Market Price (Retail) in ₹ per tonne (Excluding GST)   | Average Market Price (Retail) in ₹ per tonne (Excluding GST)   | Average Market Price (Retail) in ₹ per tonne (Excluding GST)   |
|-------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
| Item                                | November 2021                                                  | November 2023                                                  | %change                                                        |
| Pig Iron                            | 46625                                                          | 43469                                                          | -7                                                             |
| Pencil Ingots                       | 46237                                                          | 42915                                                          | -7                                                             |
| Wire Rods8mm                        | 55388                                                          | 52220                                                          | -6                                                             |
| Rounds 12mm                         | 55540                                                          | 52949                                                          | -5                                                             |
| TMT 10 mm                           | 57314                                                          | 53271                                                          | -7                                                             |
| Plates 10mm                         | 69852                                                          | 57636                                                          | -17                                                            |
| H. R. Coils 2.00mm                  | 71623                                                          | 58216                                                          | -19                                                            |
| C. R. Coils 0.63mm                  | 78860                                                          | 62966                                                          | -20                                                            |
| G. P. Sheets 0.63 mm                | 85237                                                          | 68032                                                          | -20                                                            |
| Source: Joint Plant Committee (JPC) | Source: Joint Plant Committee (JPC)                            | Source: Joint Plant Committee (JPC)                            | Source: Joint Plant Committee (JPC)                            |

Contd…

Similarly, international prices of select items for China, USA and EU for November 2023 and November 2021 indicate a decline as given below:

(Price in ₹ per tonne)

| Item                                                             | China                                                            | China                                                            | China                                                            | USA                                                              | USA                                                              | USA                                                              | EU                                                               | EU                                                               | EU                                                               |
|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|
| Item                                                             | Nov 21                                                           | Nov 23                                                           | % Change                                                         | Nov 21                                                           | Nov 23                                                           | % Change                                                         | Nov 21                                                           | Nov 23                                                           | % Change                                                         |
| Rebar                                                            | 51275                                                            | 40674                                                            | -21                                                              | 74720                                                            | 69103                                                            | -8                                                               | 63599                                                            | 55931                                                            | -12                                                              |
| HR Coils                                                         | 57188                                                            | 43302                                                            | -24                                                              | 136601                                                           | 75307                                                            | -45                                                              | 84933                                                            | 53279                                                            | -37                                                              |
| CR Coils                                                         | 64920                                                            | 55011                                                            | -15                                                              | 158684                                                           | 93873                                                            | -41                                                              | 92736                                                            | 60297                                                            | -35                                                              |
| GP Sheets                                                        | 69286                                                            | 59056                                                            | -15                                                              | 159579                                                           | 108027                                                           | -32                                                              | 97557                                                            | 68043                                                            | -30                                                              |
| Source: Fastmarkets Metal Bulletin; Note: - Prices are ex-works. | Source: Fastmarkets Metal Bulletin; Note: - Prices are ex-works. | Source: Fastmarkets Metal Bulletin; Note: - Prices are ex-works. | Source: Fastmarkets Metal Bulletin; Note: - Prices are ex-works. | Source: Fastmarkets Metal Bulletin; Note: - Prices are ex-works. | Source: Fastmarkets Metal Bulletin; Note: - Prices are ex-works. | Source: Fastmarkets Metal Bulletin; Note: - Prices are ex-works. | Source: Fastmarkets Metal Bulletin; Note: - Prices are ex-works. | Source: Fastmarkets Metal Bulletin; Note: - Prices are ex-works. | Source: Fastmarkets Metal Bulletin; Note: - Prices are ex-works. |

(c) Steel is a deregulated sector and the role of the Government is that of a facilitator. Decisions  such  as  import  and  export  are  market  driven,  and  are  taken  by  the  steel companies  based  on  techno-commercial  considerations.  Government  has  taken  the following steps to protect and promote the domestic steel industry, which include: -

- (i) Notification of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for promoting procurement of Made in India steel.
- (ii)  Implementation of Steel Quality Control Order to stop manufacturing and import of non-standardized steel.
- (iii)  Implementation of Steel Import Monitoring System (SIMS) for advanced registration of steel imports.
- (iv)  Notification of Production Linked Incentive (PLI) Scheme for Specialty Steel with an outlay of ₹ 6322 Crore.
- (d) No such proposals are under consideration.

(e) Steel is a deregulated sector where decisions regarding usage of raw materials and methods adopted for production of steel are taken by individual companies based on their techno-economic considerations.

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