Lok Sabha Question No. 2325 (UNSTARRED), answered on 2016-05-09
Subject: Production/Consumption of Steel
Ministry: STEEL
Asked by: PR. SENTHILNATHAN

## PRODUCTION/CONSUMPTION OF STEEL

2325.  SHRI PR. SENTHIL NATHAN:

Will the Minister of STEEL be pleased to state:

(a) whether  the  Government  has fixed  any  specific standard  and  norms  for  the production of Steel rods and Steel bars for domestic consumption;

(b) if so, the details thereof;

(c) the  total  quantity  and  value  of  Steel  rods/bars  utilised  for  the  domestic  and industrial consumption during each of the last three years, state/UT-wise;

(d) whether the Government is aware of the fast occurring changes in the technocommercial fronts in the Steel sector; and

(e) if so, the details thereof and the steps taken by the Government to regulate the price of Steel for domestic and industrial consumption in the country?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF STEEL AND MINES

(SHRI VISHNU DEO SAI)

(a) Yes, Madam. Government has issued the Steel and Steel Products (Quality Control) Orders thereby notifying 30 steel products inter-alia covering steel bars and rods under the mandatory Quality Certification Marks Scheme of BIS. As per these orders,  any  manufacture,  storage  for  sale,  sale  or  distribution  of  steel  and  steel products  listed  in  the  quality  control  order,  which  do  not  conform  to  the  specified standards and do not bear mark of the BIS, is prohibited.

(b)      List  of  Steel  bars  and  rods  covered  under  the  steel  quality  control  orders  is annexed.

(c)        Data  on  total  quantity  and  value  of  steel  bars  and  rods  for  domestic  and industrial  consumption, state/UT wise is not maintained. However,  year-wise aggregate production and consumption data is given below:

| Year               | Total finished non-alloy or carbon steel bars and rods (mt)   | Total finished non-alloy or carbon steel bars and rods (mt)   |
|--------------------|---------------------------------------------------------------|---------------------------------------------------------------|
|                    | Production for sale                                           | Consumption                                                   |
| 2011-12            | 28.10                                                         | 28.05                                                         |
| 2012-13            | 28.79                                                         | 29.44                                                         |
| 2013-14            | 29.55                                                         | 29.42                                                         |
| 2014-15            | 32.25                                                         | 31.08                                                         |
| 2015-16*           | 32.99                                                         | 32.83                                                         |
| Source: JPC; *prov | Source: JPC; *prov                                            | Source: JPC; *prov                                            |

(d)   Various qualitative changes in the form of modern technology, better resource optimization,  beneficiation  of  raw  materials  etc.  are  being  adopted  by  the  steel companies in their modernization and expansion programmes as well as in new steel plants.  The  type  of  technology,  size  of  plant  and  the  process  of  steel  making  is decided  by the individual  company  on  the  techno-commercial  considerations. Adoption  of  state-of-the-art technologies  in both  the  new  and  old  capacities, improvement  in  operative  efficiency  levels,  improved  quality  of  the  products  and customization have helped in improvement of techno-commercials of the Indian steel sector.

(e)     Steel is a de-regulated sector and steel prices are accordingly market driven. Prices are dependent on demand-supply dynamics of the product, including inter-alia, domestic demand of the product, supply from domestic sources and imports, level of inventory  in  the  market  and  with  customers,  transport  cost,  taxes  and  duties  etc. However,  Government  has  imposed  Minimum  Import  Price  (MIP)  on  173  steel products to provide the level playing field to the domestic steel producers.

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## Annexure

| IS 1786-2008                | High strength deformed steel bars and wires for concrete reinforcement (8 mmand above)                                                                           |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| IS 2062-2011                | Hot rolled medium and high tensile structural steel (excluding bars and rods of diameter or thickness less than 6 mm and structurals below 50 mm x 50 mm x 6 mm) |
| IS 7283-1992                | Hot Rolled bars for production of bright bars and machined parts for engineering applications                                                                    |
| IS 7904-1995                | High Carbon Steel Wire Rods - Specification                                                                                                                      |
| IS 2255-1977                | Specification for mild steel wire rod for the manufacture of machine screws (by cold heading process)                                                            |
| IS 7887-1992                | Mild steel wire rods for general engineering purposes                                                                                                            |
| IS 1875-1992:               | Carbon steel billets, blooms, slabs and bars for forgings                                                                                                        |
| IS : 11169 ( Part 1) - 1984 | Specification for steels for cold heading/cold extrusion applications                                                                                            |
| IS 2879-1998                | Mild steel for metal arc welding electrodes                                                                                                                      |

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