Lok Sabha Question No. 1308 (UNSTARRED), answered on 2016-07-25
Subject: Demand and Supply of Steel
Ministry: STEEL
Asked by: SHIVKUMAR CHANABASAPPA UDASI, RAVINDRA KUMAR PANDEY

## LOK SABHA

## DEMAND AND SUPPLY OF STEEL

1308.  SHRI SHIVKUMAR UDASI: SHRI RAVINDRA KUMAR PANDEY:

Will the Minister of STEEL be pleased to state:

(a) the details of demand, supply and prices of each type of steel in the country during each of the last three years and the current year;

(b) whether the domestic industry could not meet the domestic demand resulting in import of steel and if so, the details thereof and the reasons therefor;

(c) whether some countries including China are dumping their products in India at cheaper rates and adversely impacting the health of domestic producers and if so, the details thereof; and

(d) the  corrective  measures  taken/proposed  to  be  taken  by  the  Government  to protect the domestic steel industry against the cheap steel imports?

## ANSWER

## THE MINISTER OF STATE FOR STEEL

- (a) Details are at Annexure I & II .

(b) During the years 2015-16, against a total production capacity of about 118 MT, India had produced about 91 MT of finished steel with an apparent consumption of about  80  MT.    Thus  the  country  is capable  of  meeting  almost  the  entire domestic steel  demand.    Only  a  small  quantity  of  high  quality  steel,  not  manufactured domestically needs to be imported.  The country has witnessed a total finished steel import of about 9.32 MT during the year  2014-15 whereas the import has gone up to about 11.71 MT during 2015-16.

(c ) Yes, Madam.  Some countries including China are dumping their products in India  at  cheaper  rates  and  adversely  impacting  the  health  of  domestic  producers. The reasons for increase in imports of steel products from China are that there is huge overcapacity in China, due to which they are exporting surplus steel even at below cost of production to growing markets like India.

(d) In order to provide level playing field to domestic steel sector, Government has taken various measures which are as under:-

- (i) In February, 2016, Government imposed Minimum Import Price (MIP) on 173 steel products.
- (ii) In June 2015, an Anti-dumping Duty was levied for five years on imports of certain variety of hot-rolled flat products of stainless steel.
- (iii) In  September,  2015,  a  provisional  safeguard  duty  of  20%  was  imposed  on certain hot-rolled flat steel products.
- (iv) Government  hiked  import  duty  on  various  finished  and  semi-finished  steel products.

********

(SHRI VISHNU DEO SAI)

Source: JPC;*prov

## Details of Demand (as actual consumption) Finished Non-Alloy Steel

| Items                  |   2013-14 |   2014-15 | 2015-16*   |   2016-17* Apr.-May |
|------------------------|-----------|-----------|------------|---------------------|
| Bars & Rods            |     29420 |     31081 | 32,833     |                5630 |
| Structurals            |      6857 |      7301 | 7,389      |                1218 |
| Rly. Materials         |       870 |       851 | 904        |                 118 |
| Non Flat               |     37147 |     39233 | 41,125     |                6966 |
| Plates                 |      4177 |      4770 | 5221       |                 640 |
| H.R.Coils\Skelp        |     19991 |     20544 | 21382      |                3449 |
| H.R.Sheets             |       965 |      1113 | 1565       |                 267 |
| C.R.Sheets\coils       |      8526 |      8295 | 8267       |                1275 |
| GP\GC Sheets           |      5428 |      5554 | 5502       |                1002 |
| Elec. Sheets           |       462 |       541 | 429        |                  72 |
| Tinplate (incl. ww)    |       462 |       525 | 423        |                  88 |
| TMBP                   |         4 |         1 | 4          |                   0 |
| Pipes (Large Dia.)     |      1963 |      1993 | 2008       |                 335 |
| Tin free steel         |        68 |        87 | 80         |                   5 |
| Flat                   |     42046 |     43423 | 44881      |                7133 |
| Less : Double Counting |     11200 |     12420 | 13,303     |                2205 |
| Total: Non-Alloy       |     67993 |     70236 | 72,703     |               11894 |
| Total: Alloy           |      6102 |      6758 | 7,745      |                1217 |
| Total Finished Steel   |     74095 |     76994 | 80,448     |               13111 |

## Details of Supply (as actual production for sale)

(in thousand tones)

| Items                |   2013-14 |   2014-15 | 2015-16*   |   2016-17* Apr.-May |
|----------------------|-----------|-----------|------------|---------------------|
| Bars & Rods          |     29550 |     32251 | 32,999     |                5837 |
| Structurals          |      6896 |      7495 | 7,508      |                1285 |
| Rly. Materials       |       887 |       835 | 886        |                 151 |
| Non Flat             |     37333 |     40581 | 41,392     |                7273 |
| Plates               |      3896 |      4700 | 4324       |                 678 |
| H.R.Coils\Skelp      |     20806 |     20205 | 18594      |                3519 |
| H.R.Sheets           |       920 |      1138 | 1512       |                 285 |
| C.R.Sheets\coils     |      7722 |      7509 | 6964       |                1349 |
| GP\GC Sheets         |      6898 |      6892 | 6539       |                1207 |
| Elec. Sheets         |       126 |       140 | 122.8      |                  21 |
| Tinplate (incl. ww)  |       344 |       354 | 309        |                  54 |
| TMBP                 |         3 |         0 | 0          |                   0 |
| Pipes (Large Dia.)   |      1978 |      2094 | 2065       |                 350 |
| Tin free steel       |        12 |         0 | 0          |                   0 |
| Flat                 |     42705 |     43032 | 40430      |                7463 |
| Total: Non-Alloy     |     80038 |     83613 | 81,822     |               14736 |
| Total: Alloy         |      7637 |      8544 | 8569       |                1578 |
| Total Finished Steel |     87675 |     92157 | 90,391     |               16314 |

Source: JPC;*prov

## Annexure-I

(in thousand tones)

| Indicative average market prices of leading items of finished steel, 2013-14: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2013-14: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2013-14: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2013-14: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2013-14: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2013-14: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2013-14: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2013-14: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2013-14: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2013-14: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2013-14: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2013-14: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2013-14: Delhi market (Rs./t)   |
|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|
| ITEM                                                                                                 | Apr.                                                                                                 | May                                                                                                  | June                                                                                                 | July                                                                                                 | Aug.                                                                                                 | Sept.                                                                                                | Oct.                                                                                                 | Nov.                                                                                                 | Dec.                                                                                                 | Jan.                                                                                                 | Feb.                                                                                                 | Mar.                                                                                                 |
| Pig Iron                                                                                             | 30000                                                                                                | 30800                                                                                                | 30700                                                                                                | 30500                                                                                                | 30300                                                                                                | 33000                                                                                                | 33000                                                                                                | 32800                                                                                                | 32500                                                                                                | 32800                                                                                                | 32500                                                                                                | 33000                                                                                                |
| Pencil Ingots                                                                                        | 34500                                                                                                | 31600                                                                                                | 32100                                                                                                | 31000                                                                                                | 30000                                                                                                | 31500                                                                                                | 32500                                                                                                | 32000                                                                                                | 31500                                                                                                | 32500                                                                                                | 35400                                                                                                | 34700                                                                                                |
| Wire Rod 8mm                                                                                         | 45940                                                                                                | 45940                                                                                                | 46110                                                                                                | 45590                                                                                                | 44890                                                                                                | 45410                                                                                                | 45410                                                                                                | 45170                                                                                                | 45170                                                                                                | 45520                                                                                                | 46110                                                                                                | 45940                                                                                                |
| Rounds 12mm                                                                                          | 45330                                                                                                | 45680                                                                                                | 45860                                                                                                | 44980                                                                                                | 44630                                                                                                | 45330                                                                                                | 45330                                                                                                | 45440                                                                                                | 45440                                                                                                | 46210                                                                                                | 46560                                                                                                | 46560                                                                                                |
| TMT 10mm                                                                                             | 47010                                                                                                | 47360                                                                                                | 47540                                                                                                | 47080                                                                                                | 46380                                                                                                | 47430                                                                                                | 47430                                                                                                | 47960                                                                                                | 47960                                                                                                | 48310                                                                                                | 48660                                                                                                | 48310                                                                                                |
| Plates 10mm                                                                                          | 49420                                                                                                | 49420                                                                                                | 49420                                                                                                | 49420                                                                                                | 49320                                                                                                | 49470                                                                                                | 49570                                                                                                | 49470                                                                                                | 49320                                                                                                | 49740                                                                                                | 49820                                                                                                | 49920                                                                                                |
| HR Coils 2.00 mm                                                                                     | 48770                                                                                                | 48770                                                                                                | 48710                                                                                                | 48770                                                                                                | 48670                                                                                                | 48900                                                                                                | 49120                                                                                                | 49020                                                                                                | 49020                                                                                                | 49170                                                                                                | 49290                                                                                                | 49320                                                                                                |
| CR Coils 0.63mm                                                                                      | 52980                                                                                                | 52780                                                                                                | 52580                                                                                                | 52780                                                                                                | 51900                                                                                                | 52500                                                                                                | 53180                                                                                                | 52580                                                                                                | 52700                                                                                                | 53780                                                                                                | 54180                                                                                                | 54980                                                                                                |
| GP Sheets 0.63mm                                                                                     | 54280                                                                                                | 54280                                                                                                | 53680                                                                                                | 53680                                                                                                | 53680                                                                                                | 54280                                                                                                | 55240                                                                                                | 55240                                                                                                | 54580                                                                                                | 55180                                                                                                | 55780                                                                                                | 58180                                                                                                |
| Melting Scrap HMS-II                                                                                 | 26600                                                                                                | 26600                                                                                                | 26500                                                                                                | 24000                                                                                                | 23000                                                                                                | 28000                                                                                                | 28000                                                                                                | 27000                                                                                                | 26500                                                                                                | 27000                                                                                                | 28200                                                                                                | 27700                                                                                                |
| Sponge Iron (Coal)                                                                                   | 25800                                                                                                | 25800                                                                                                | 26000                                                                                                | 25000                                                                                                | 24000                                                                                                | 25800                                                                                                | 26000                                                                                                | 26000                                                                                                | 25500                                                                                                | 26200                                                                                                | 27000                                                                                                | 26300                                                                                                |
| Indicative average market prices of leading items of finished steel, 2014-15: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2014-15: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2014-15: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2014-15: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2014-15: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2014-15: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2014-15: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2014-15: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2014-15: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2014-15: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2014-15: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2014-15: Delhi market (Rs./t)   | Indicative average market prices of leading items of finished steel, 2014-15: Delhi market (Rs./t)   |
| ITEM                                                                                                 | Apr.                                                                                                 | May                                                                                                  | June                                                                                                 | July                                                                                                 | Aug.                                                                                                 | Sept.                                                                                                | Oct.                                                                                                 | Nov.                                                                                                 | Dec.                                                                                                 | Jan.                                                                                                 | Feb.                                                                                                 | Mar.                                                                                                 |
| Pig Iron                                                                                             | 33000                                                                                                | 32500                                                                                                | 34000                                                                                                | 34000                                                                                                | 33500                                                                                                | 32100                                                                                                | 33750                                                                                                | 34000                                                                                                | 30833                                                                                                | 30000                                                                                                | 27833                                                                                                | 26167                                                                                                |
| Pencil Ingots                                                                                        | 34700                                                                                                | 33800                                                                                                | 37000                                                                                                | 35000                                                                                                | 34500                                                                                                | 32000                                                                                                | 34300                                                                                                | 38475                                                                                                | 30500                                                                                                | 32000                                                                                                | 31000                                                                                                | 30000                                                                                                |
| Wire Rod 8mm                                                                                         | 42000                                                                                                | 40500                                                                                                | 42000                                                                                                | 44000                                                                                                | 43500                                                                                                | 43350                                                                                                | 45000                                                                                                | 42900                                                                                                | 43125                                                                                                | 41925                                                                                                | 40550                                                                                                | 39900                                                                                                |
| Rounds 12mm                                                                                          | 43500                                                                                                | 42500                                                                                                | 44200                                                                                                | 44000                                                                                                | 43500                                                                                                | 43650                                                                                                | 44000                                                                                                | 40000                                                                                                | 39000                                                                                                | 40000                                                                                                | 39750                                                                                                | 40250                                                                                                |
| TMT 10mm                                                                                             | 44500                                                                                                | 43500                                                                                                | 47600                                                                                                | 46000                                                                                                | 45500                                                                                                | 45200                                                                                                | 47075                                                                                                | 44367                                                                                                | 42542                                                                                                | 42375                                                                                                | 41775                                                                                                | 41017                                                                                                |
| Plates 10mm                                                                                          | 46000                                                                                                | 45000                                                                                                | 44000                                                                                                | 43000                                                                                                | 42500                                                                                                | 42500                                                                                                | 44500                                                                                                | 42738                                                                                                | 41500                                                                                                | 40750                                                                                                | 39500                                                                                                | 38950                                                                                                |
| HR Coils 2.00 mm                                                                                     | 46000                                                                                                | 45500                                                                                                | 45500                                                                                                | 44500                                                                                                | 43800                                                                                                | 43500                                                                                                | 44500                                                                                                | 43500                                                                                                | 42433                                                                                                | 41167                                                                                                | 40333                                                                                                | 39667                                                                                                |
| CR Coils 0.63mm                                                                                      | 52500                                                                                                | 50000                                                                                                | 52000                                                                                                | 51000                                                                                                | 50000                                                                                                | 50782                                                                                                | 51000                                                                                                | 49200                                                                                                | 49000                                                                                                | 42500                                                                                                | 47100                                                                                                | 45000                                                                                                |
| GP Sheets 0.63mm                                                                                     | 57500                                                                                                | 54550                                                                                                | 56000                                                                                                | 55500                                                                                                | 55500                                                                                                | 54550                                                                                                | 54275                                                                                                | 53000                                                                                                | 53167                                                                                                | 52925                                                                                                | 51350                                                                                                | 50275                                                                                                |
| Melting Scrap HMS-II                                                                                 | 27700                                                                                                | 27200                                                                                                | 28000                                                                                                | 27000                                                                                                | 27500                                                                                                | 25500                                                                                                | 25600                                                                                                | 26500                                                                                                | 23000                                                                                                | 25000                                                                                                | 24000                                                                                                | 21000                                                                                                |
| Sponge Iron (Coal)                                                                                   | 26300                                                                                                | 25700                                                                                                | 26300                                                                                                | 25500                                                                                                | 25500                                                                                                | 25000                                                                                                | 25200                                                                                                | 23000                                                                                                | 23500                                                                                                | 24500                                                                                                | 23750                                                                                                | 22000                                                                                                |
| Market (retail) prices of leading items of finished steel, 2015-16: Delhi market (Rs./t)             | Market (retail) prices of leading items of finished steel, 2015-16: Delhi market (Rs./t)             | Market (retail) prices of leading items of finished steel, 2015-16: Delhi market (Rs./t)             | Market (retail) prices of leading items of finished steel, 2015-16: Delhi market (Rs./t)             | Market (retail) prices of leading items of finished steel, 2015-16: Delhi market (Rs./t)             | Market (retail) prices of leading items of finished steel, 2015-16: Delhi market (Rs./t)             | Market (retail) prices of leading items of finished steel, 2015-16: Delhi market (Rs./t)             | Market (retail) prices of leading items of finished steel, 2015-16: Delhi market (Rs./t)             | Market (retail) prices of leading items of finished steel, 2015-16: Delhi market (Rs./t)             | Market (retail) prices of leading items of finished steel, 2015-16: Delhi market (Rs./t)             | Market (retail) prices of leading items of finished steel, 2015-16: Delhi market (Rs./t)             | Market (retail) prices of leading items of finished steel, 2015-16: Delhi market (Rs./t)             | Market (retail) prices of leading items of finished steel, 2015-16: Delhi market (Rs./t)             |
| ITEM                                                                                                 | Apr.                                                                                                 | May                                                                                                  | June                                                                                                 | July                                                                                                 | Aug.                                                                                                 | Sept.                                                                                                | Oct.                                                                                                 | Nov.                                                                                                 | Dec.                                                                                                 | Jan.                                                                                                 | Feb.                                                                                                 | Mar.                                                                                                 |
| Pig Iron                                                                                             | 27433                                                                                                | 26667                                                                                                | 24667                                                                                                | 25533                                                                                                | 25300                                                                                                | 26000                                                                                                | 24900                                                                                                | 24033                                                                                                | 23167                                                                                                | 22833                                                                                                | 25500                                                                                                | NA                                                                                                   |
| Pencil Ingots                                                                                        | 31200                                                                                                | 29000                                                                                                | 28000                                                                                                | 24500                                                                                                | 23600                                                                                                | 26000                                                                                                | 24000                                                                                                | 22000                                                                                                | 19500                                                                                                | 25500                                                                                                | 26500                                                                                                | 25700                                                                                                |
| Wire Rod 8mm                                                                                         | 40650                                                                                                | 39500                                                                                                | 38750                                                                                                | 36000                                                                                                | 36600                                                                                                | 37000                                                                                                | 35750                                                                                                | 32500                                                                                                | 29250                                                                                                | 30750                                                                                                | 34000                                                                                                | 34500                                                                                                |
| Rounds 12mm                                                                                          | 40250                                                                                                | 37750                                                                                                | 38200                                                                                                | 36600                                                                                                | 34150                                                                                                | 37250                                                                                                | 35575                                                                                                | 31875                                                                                                | 30250                                                                                                | 29500                                                                                                | 33250                                                                                                | 35200                                                                                                |
| TMT 10mm                                                                                             | 42538                                                                                                | 40075                                                                                                | 40534                                                                                                | 38188                                                                                                | 36275                                                                                                | 38750                                                                                                | 35625                                                                                                | 33713                                                                                                | 30417                                                                                                | 33284                                                                                                | 36538                                                                                                | 35000                                                                                                |
| Plates 10mm                                                                                          | 40100                                                                                                | 38267                                                                                                | 36375                                                                                                | 34850                                                                                                | 33550                                                                                                | 34725                                                                                                | 35000                                                                                                | 33000                                                                                                | 30750                                                                                                | 33100                                                                                                | 33300                                                                                                | 35000                                                                                                |
| HR Coils 2.00 mm                                                                                     | 39100                                                                                                | 40667                                                                                                | 37438                                                                                                | 36125                                                                                                | 34250                                                                                                | 34563                                                                                                | 35675                                                                                                | 34625                                                                                                | 32200                                                                                                | 33325                                                                                                | 34033                                                                                                | 34500                                                                                                |
| CR Coils 0.63mm                                                                                      | 44533                                                                                                | 44500                                                                                                | 42000                                                                                                | 40717                                                                                                | 39750                                                                                                | 40300                                                                                                | 40825                                                                                                | 37500                                                                                                | 36267                                                                                                | 35833                                                                                                | 38000                                                                                                | 38000                                                                                                |
| GP Sheets 0.63mm                                                                                     | 49767                                                                                                | 48350                                                                                                | 49150                                                                                                | 46783                                                                                                | 43500                                                                                                | 44233                                                                                                | 44867                                                                                                | 42500                                                                                                | 41500                                                                                                | 41133                                                                                                | 40500                                                                                                | 46000                                                                                                |
| Melting Scrap HMS-II                                                                                 | 23000                                                                                                | 21450                                                                                                | 23100                                                                                                | 20550                                                                                                | 18000                                                                                                | 22500                                                                                                | 21100                                                                                                | 14250                                                                                                | 15300                                                                                                | 16000                                                                                                | 18350                                                                                                | 19000                                                                                                |
| Sponge Iron (Coal)                                                                                   | 23250                                                                                                | 22150                                                                                                | 22250                                                                                                | 18900                                                                                                | 17000                                                                                                | 19000                                                                                                | 17500                                                                                                | 16500                                                                                                | 16450                                                                                                | 15500                                                                                                | 16500                                                                                                | 16000                                                                                                |

## Market (retail) prices  of leading items of finished steel,2016-17: Delhi market (Rs./t)

| ITEM                 |   Apr. |   May |   June |
|----------------------|--------|-------|--------|
| Pig Iron             |  28000 | 29800 |  27500 |
| Pencil Ingots        |  25000 | 24250 |  23500 |
| Wire Rod 8mm         |  35000 | 34800 |  33550 |
| Rounds 12mm          |  33500 | 32900 |  33000 |
| TMT 10mm             |  36000 | 35900 |  34750 |
| Plates 10mm          |  33000 | 37800 |  36000 |
| HR Coils 2.00 mm     |  34500 | 38800 |  37200 |
| CR Coils 0.63mm      |  37500 | 39500 |  39000 |
| GP Sheets 0.63mm     |  47000 | 46500 |  45000 |
| Melting Scrap HMS-II |  18300 | 17500 |  17000 |
| Sponge Iron (Coal)   |  16000 | 14200 |  13500 |

Source: JPC