Lok Sabha Question No. 2433 (UNSTARRED), answered on 2024-12-10
Subject: Impact of Steel Import on Domestic Companies
Ministry: STEEL
Asked by: Shri Shyamkumar Daulat Barve

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO. 2433 FOR ANSWER ON 10.12.2024

## IMPACT OF STEEL IMPORT ON DOMESTIC COMPANIES

2433.  SHRI SHYAMKUMAR DAULAT BARVE:

Will the Minister of STEEL be pleased to state:

- (a) whether 15 lakh tones of steel imported from China in the first seven months of 2024 which is 66.7 per cent. more than the import of 9 lakh tones in the same period last year and if so, the details thereof;
- (b)  whether the price  of  imported  steel is  lower  than  that of  produced by domestic companies;
- (c) whether the increase in imports of steel is affecting the sales of domestic companies and the demand of locally manufactured steel is decreasing due to this the prices of domestic steel have also reached a three-year low;
- (d) whether the tightening of the quality check of steel aims to control steel imports;
- (e) the details of steel grades which can be imported on the basis of 'No Objection Certificate'; and
- (f) the details of steel grades banned for import?

## ANSWER

(SHRI H. D. KUMARASWAMY)

- (a) The import of finished steel from China during first seven months of 2024 i.e. January-July 2024 (prov.), and January-July 2023 is given in table below:-

| Item                                               | January-July 2024* (in Lakh Tonnes)                | January-July 2023 (in Lakh Tonnes)                 | % change*                                          |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
| Import of finished steel from China                | 16.1                                               | 9.0                                                | 80                                                 |
| Source: Joint Plant Committee (JPC); *provisional; | Source: Joint Plant Committee (JPC); *provisional; | Source: Joint Plant Committee (JPC); *provisional; | Source: Joint Plant Committee (JPC); *provisional; |

(b)&(c): Steel is a de-regulated sector where prices of steel are determined by market dynamics and fluctuate depending on its availability. The Government acts as

a facilitator, by creating a conducive policy environment for the development of steel sector in the country. The details of production, consumption and import of finished steel in the country during the last three years is as under:-

| Year                                 | Finished Steel (in Million Tonnes)   | Finished Steel (in Million Tonnes)   | Finished Steel (in Million Tonnes)   |
|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|
|                                      | Production                           | Consumption                          | Import                               |
| 2021-22                              | 113.60                               | 105.75                               | 4.67                                 |
| 2022-23                              | 123.20                               | 119.89                               | 6.02                                 |
| 2023-24                              | 139.15                               | 136.29                               | 8.32                                 |
| Source: Joint Plant Committee (JPC); | Source: Joint Plant Committee (JPC); | Source: Joint Plant Committee (JPC); | Source: Joint Plant Committee (JPC); |

(d)to(f): In order to enable consumption of quality steel by the end users, Bureau of Indian Standards (BIS) formulated standards for different grade of steel. Ministry of Steel accordingly issued steel Quality Control Order (QCO) which mandates that  only quality steel conforming to the relevant BIS standards notified under QCO are allowed and sub-standard steel products are not allowed. This ensures that only quality steel is made available to the end users & the public at large. The QCO is applicable to both the domestic steel producers as well as on the steel imported into the country. The QCO is a measure to ensure availability of quality steel to the end users, not to control steel imports. However, some steel grades, which are not covered by BIS standards, can be imported with a No Objection Certificate (NOC) from Ministry of Steel.

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