Lok Sabha Question No. 3656 (UNSTARRED), answered on 2016-08-08
Subject: Iron Ore and Steel Production
Ministry: STEEL
Asked by: Richard Hay

## LOK SABHA

## UNSTARRED QUESTION NO.3656 FOR ANSWER ON 08/08/2016

## IRON ORE AND STEEL PRODUCTION

3656.  PROF. RICHARD HAY:

Will the Minister of STEEL be pleased to state:

(a) the details of the total quantum of iron ore and steel produced, exported and imported along with the per capita consumption of steel in the country during the last three years and the current year, plant-wise and country-wise;

(b) the estimated demand and supply projections of iron ore and steel separately for the public and private sectors during the next three years;

(c) the  steps  taken/proposed  to  be  taken  by  the  Government  to  meet  the projected demands;

(d) whether the import of iron ore has increased during the last three years and the current year and if so, the details thereof and the reasons therefor;

(e) whether the steel prices in the country  are higher as compared to the other major steel producing countries and if so, the reasons therefor along with the efforts made by the Government in this regard; and

(f) the  steps  taken/being  taken  by  the  Government  for  regulating  the  export  of iron and steel from the country?

## ANSWER

## THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a)          Details of steel imported and exported during the last three years, countrywise, are at Annexure-I and II respectively.  Table showing total quantum of iron ore and steel produced,  per capita consumption  of steel in  the country  during  the  last three years and the current year are given below:

(in million tonnes)

| Year    |   Iron Ore Production | Crude Steel Production   | Per capita steel consumption (kg)   |
|---------|-----------------------|--------------------------|-------------------------------------|
| 2013-14 |                152.18 | 81.69                    | 60                                  |
| 2014-15 |                128.91 | 88.98                    | 60                                  |
| 2015-16 |                155.9  | 89.78                    | 60                                  |
| 2016-17 |                 48.2  | Not available            | Not available                       |

(Source: IBM/JPC)

(b)&(c): Steel consumption has been growing at 4 % per annum over past decade. With a production of 89.32 MT of crude steel and production capacity of 118 MT in end  of  Financial  Year  2015-2016,  Government  does  not  foresee  any  shortage  of steel in the country. Similarly present production trends of iron ore do not indicate any shortage of iron ore in the country.

(d) As per available information, the imports of iron ore during the last three years shows fluctuating trends due to various market conditions. Details are given in the table below:-

| 2013-2014   | 2013-2014   | 2014-15   | 2014-15   | 2015-16 (Prov.)   | 2015-16 (Prov.)   |
|-------------|-------------|-----------|-----------|-------------------|-------------------|
| Qty.        | Value       | Qty.      | Value     | Qty.              | Value             |
| 369         | 3423552     | 12093     | 65947417  | 7095              | 31957297          |

(Source: IBM)

(e) The  comparable  domestic  prices  of  steel  product  in  major  steel  producing countries as compared to India may be seen below.  The price of steel in India is comparable to major steel producing countries.

Table 1: Ex- Works Prices of HRC, CRC & Re-bars in June 2016(USD/tonne)

|   SL.No. | Item              |   USA |   Europe | Japan   | Russia   | Turkey   |   India |   China |
|----------|-------------------|-------|----------|---------|----------|----------|---------|---------|
|        1 | Re-bars           |   620 |      535 | 485     | 474      | NA       |     395 |     307 |
|        2 | Hot Rolled Coils  |   699 |      517 | 476     | 491      | NA       |     384 |     328 |
|        3 | Cold Rolled Coils |   915 |      630 | NA      | NA       | 570      |     438 |     368 |

Source: ERU, JPC

(f) Steel  is  de-regulated  and  Government  does  not  try  to  control  its  export.  As regards Iron Ore, the export duty on Iron Ore is as follows:

| Product                        | Export duty rate   |
|--------------------------------|--------------------|
| Iron ore lumps >58% Fe content | 30%                |
| Iron ore lumps <58% Fe content | 0%                 |
| Iron ore fines >58% Fe content | 30%                |
| Iron ore fines<58% Fe content  | 0%                 |

********

Annexure-I to LS USQ No.3656

| IMPORT OF TOTAL FINISHED STEEL ('000t )              | IMPORT OF TOTAL FINISHED STEEL ('000t )              | IMPORT OF TOTAL FINISHED STEEL ('000t )              | IMPORT OF TOTAL FINISHED STEEL ('000t )              | IMPORT OF TOTAL FINISHED STEEL ('000t )              |
|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|
| COUNTRY                                              | 2013-14                                              | 2014-15                                              | 2015-16*                                             | April-June 2016-17*                                  |
| ARGENTINA                                            | 0.5                                                  | 0.82                                                 | 0.5                                                  | 0                                                    |
| AUSTRALIA                                            | 5.1                                                  | 8.28                                                 | 3.9                                                  | 0.74                                                 |
| BAHRAIN                                              | 0.8                                                  | 0.22                                                 | 0.1                                                  | 0                                                    |
| BELGIUM                                              | 94.8                                                 | 126.13                                               | 95.7                                                 | 20.82                                                |
| BRAZIL                                               | 70.0                                                 | 128.87                                               | 186.8                                                | 6.7                                                  |
| CANADA                                               | 18.1                                                 | 7.31                                                 | 6.6                                                  | 0.53                                                 |
| CHILE                                                | 0.1                                                  | 0.02                                                 | 0.0                                                  | 0.13                                                 |
| CHINA                                                | 1088.4                                               | 3600.42                                              | 4125.2                                               | 510.69                                               |
| DENMARK                                              | 1.0                                                  | 4.78                                                 | 3.9                                                  | 1.48                                                 |
| DJIBOUTI                                             | 0.0                                                  | 0                                                    | 0.6                                                  | 0                                                    |
| FINLAND                                              | 13.8                                                 | 11.8                                                 | 11.8                                                 | 1.63                                                 |
| FRANCE                                               | 36.5                                                 | 155.84                                               | 66.4                                                 | 31.54                                                |
| GERMANY                                              | 186.0                                                | 149.03                                               | 197.3                                                | 54.27                                                |
| HONGKONG                                             | 0.4                                                  | 1.5                                                  | 0.6                                                  | 1.46                                                 |
| INDONESIA                                            | 2.3                                                  | 14.41                                                | 242.8                                                | 7.43                                                 |
| IRAN                                                 | 100.7                                                | 0                                                    | 20.7                                                 | 7.23                                                 |
| ITALY                                                | 25.2                                                 | 54.95                                                | 28.3                                                 | 6.23                                                 |
| JAPAN                                                | 1355.7                                               | 1583.31                                              | 2160.4                                               | 299.83                                               |
| KAZAKHSTAN                                           | 8.1                                                  | 8.93                                                 | 4.9                                                  | 0                                                    |
| KOREA                                                | 1312.6                                               | 1874.93                                              | 3007.3                                               | 511.26                                               |
| KUWAIT                                               | 0.1                                                  | 1.79                                                 | 0.0                                                  | 0                                                    |
| MALAYASIA                                            | 29.9                                                 | 95.99                                                | 53.1                                                 | 6.29                                                 |
| NETHERLANDS                                          | 21.6                                                 | 40.21                                                | 16.0                                                 | 3.62                                                 |
| ROMANIA                                              | 26.2                                                 | 11.14                                                | 1.9                                                  | 0.27                                                 |
| RUSSIA                                               | 145.9                                                | 226.02                                               | 364.4                                                | 168.92                                               |
| SAUDI ARABIA                                         | 47.8                                                 | 4.19                                                 | 0.8                                                  | 0.11                                                 |
| SOUTH AFRICA                                         | 44.1                                                 | 71.47                                                | 51.8                                                 | 7.56                                                 |
| SPAIN                                                | 21.1                                                 | 29.67                                                | 28.3                                                 | 5.78                                                 |
| SRI LANKA                                            | 0.2                                                  | 0.12                                                 | 0.4                                                  | 0.18                                                 |
| TAIWAN                                               | 118.8                                                | 190.33                                               | 202.4                                                | 45.28                                                |
| THAILAND                                             | 21.9                                                 | 15.93                                                | 41.9                                                 | 17.8                                                 |
| TURKEY                                               | 14.1                                                 | 29.09                                                | 1.2                                                  | 0.29                                                 |
| U.K.                                                 | 28.0                                                 | 30.26                                                | 30.7                                                 | 5.06                                                 |
| UAE                                                  | 19.6                                                 | 34.14                                                | 36.4                                                 | 6.61                                                 |
| UKRAINE                                              | 323.0                                                | 348.77                                               | 238.3                                                | 14.76                                                |
| USA                                                  | 79.3                                                 | 120.12                                               | 82.5                                                 | 19.77                                                |
| Others                                               | 188.7                                                | 339.24                                               | 397.0                                                | 67.73                                                |
| Total 5450 9320 11711 1832 Source: JPC; *provisional | Total 5450 9320 11711 1832 Source: JPC; *provisional | Total 5450 9320 11711 1832 Source: JPC; *provisional | Total 5450 9320 11711 1832 Source: JPC; *provisional | Total 5450 9320 11711 1832 Source: JPC; *provisional |

## Annexure-II to LS USQ No.3656

| EXPORT OF TOTAL FINISHED STEEL ('000 tonnes)   | EXPORT OF TOTAL FINISHED STEEL ('000 tonnes)   | EXPORT OF TOTAL FINISHED STEEL ('000 tonnes)   | EXPORT OF TOTAL FINISHED STEEL ('000 tonnes)   | EXPORT OF TOTAL FINISHED STEEL ('000 tonnes)   |
|------------------------------------------------|------------------------------------------------|------------------------------------------------|------------------------------------------------|------------------------------------------------|
| Country                                        | 2013-14                                        | 2014-15                                        | 2015-16*                                       | Apr-June 2016-17*                              |
| AUSTRALIA                                      | 48.3                                           | 49.29                                          | 29.38                                          | 16.31                                          |
| BAHARIN                                        | 14.7                                           | 8.48                                           | 12.41                                          | 0.73                                           |
| BANGLADESH                                     | 95.9                                           | 136.5                                          | 55.06                                          | 21.04                                          |
| BELGIUM                                        | 395.0                                          | 198.39                                         | 287.42                                         | 144.10                                         |
| BHUTAN                                         | 0.0                                            | 0                                              | 0.00                                           | 0.00                                           |
| BRAZIL                                         | 37.6                                           | 42.95                                          | 11.98                                          | 2.37                                           |
| CANADA                                         | 60.6                                           | 132.95                                         | 17.32                                          | 6.36                                           |
| CHILE                                          | 18.3                                           | 9.51                                           | 18.35                                          | 2.14                                           |
| CHINA                                          | 11.2                                           | 3.32                                           | 3.92                                           | 1.00                                           |
| COLOMBIA                                       | 34.5                                           | 34.03                                          | 15.90                                          | 5.59                                           |
| CONGO                                          | 6.8                                            | 3.83                                           | 3.25                                           | 0.21                                           |
| DENMARK                                        | 2.2                                            | 9.69                                           | 8.90                                           | 1.16                                           |
| DJIBOUTI                                       | 18.1                                           | 21.45                                          | 22.98                                          | 9.01                                           |
| ECUADOR                                        | 47.9                                           | 31.99                                          | 16.78                                          | 7.32                                           |
| EGYPT                                          | 33.4                                           | 9.82                                           | 17.30                                          | 4.51                                           |
| ETHIOPIA                                       | 109.8                                          | 133.58                                         | 157.82                                         | 47.12                                          |
| FINLAND                                        | 0.4                                            | 0.59                                           | 14.33                                          | 0.70                                           |
| FRANCE                                         | 7.6                                            | 9.46                                           | 19.75                                          | 2.07                                           |
| GERMANY                                        | 28.8                                           | 54.84                                          | 47.13                                          | 12.99                                          |
| GHANA                                          | 68.9                                           | 39.25                                          | 41.24                                          | 14.07                                          |
| GREECE                                         | 10.0                                           | 12.2                                           | 46.57                                          | 5.12                                           |
| INDONESIA                                      | 126.5                                          | 83.87                                          | 118.33                                         | 32.14                                          |
| IRAN                                           | 179.9                                          | 495.8                                          | 321.43                                         | 8.03                                           |
| IRAQ                                           | 19.6                                           | 8.27                                           | 30.84                                          | 1.18                                           |
| ISRAEL                                         | 3.7                                            | 5.47                                           | 6.66                                           | 1.54                                           |
| ITALY                                          | 442.1                                          | 470.86                                         | 345.41                                         | 100.86                                         |
| JAPAN                                          | 0.7                                            | 0.48                                           | 0.56                                           | 0.22                                           |
| JORDAN                                         | 3.4                                            | 0.73                                           | 1.89                                           | 0.05                                           |
| KAZAKHSTAN                                     | 0.0                                            | 0                                              | 0.00                                           | 0.00                                           |
| KENYA                                          | 197.6                                          | 61.28                                          | 45.65                                          | 7.28                                           |
| KOREA                                          | 24.7                                           | 26.63                                          | 26.57                                          | 6.01                                           |
| KUWAIT                                         | 26.7                                           | 12.83                                          | 28.16                                          | 10.73                                          |
| MADAGASCAR                                     | 0.0                                            | 11.81                                          | 15.91                                          | 4.63                                           |
| MALAYASIA                                      | 70.3                                           | 96.55                                          | 46.31                                          | 49.08                                          |
| MALDIVES                                       | 3.6                                            | 4.32                                           | 9.17                                           | 2.59                                           |
| MEXICO                                         | 35.3                                           | 45.29                                          | 52.66                                          | 8.38                                           |
| MOROCCO                                        | 0.6                                            | 1.44                                           | 2.52                                           | 3.29                                           |
| MYANMAR                                        | 50.7                                           | 29.48                                          | 18.49                                          | 5.56                                           |
| NEPAL                                          | 75.7                                           | 236.35                                         | 310.54                                         | 128.27                                         |
| NIGERIA                                        | 109.1                                          | 30.36                                          | 39.37                                          | 0.77                                           |
| PERU                                           | 28.2                                           | 44.33                                          | 71.16                                          | 13.78                                          |
| PHILIPPINES                                    | 11.9                                           | 6.08                                           | 7.20                                           | 2.86                                           |
| POLAND                                         | 36.1                                           | 34.56                                          | 39.19                                          | 12.44                                          |

| QATAR                     | 14.7                      | 11.55                     | 9.03                      | 3.68                      |
|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|
| ROMANIA                   | 28.0                      | 27.69                     | 27.24                     | 5.22                      |
| RUSSIA                    | 71.3                      | 27.85                     | 20.56                     | 5.28                      |
| SAUDI ARABIA              | 319.3                     | 248.86                    | 60.50                     | 14.56                     |
| SOUTH AFRICA              | 56.3                      | 36.89                     | 19.60                     | 3.55                      |
| SPAIN                     | 145.3                     | 180.41                    | 155.44                    | 46.54                     |
| SRI LANKA                 | 127.8                     | 138                       | 100.51                    | 30.35                     |
| SWEDEN                    | 4.5                       | 4.48                      | 3.16                      | 2.34                      |
| TAIWAN                    | 79.7                      | 129.46                    | 12.90                     | 10.16                     |
| TANZANIA                  | 80.1                      | 41.18                     | 25.75                     | 3.75                      |
| THAILAND                  | 283.7                     | 188.13                    | 69.80                     | 13.97                     |
| TURKEY                    | 34.9                      | 49.66                     | 44.66                     | 46.25                     |
| U.K.                      | 121.4                     | 64.56                     | 39.34                     | 8.86                      |
| UAE                       | 585.2                     | 606.05                    | 315.93                    | 130.31                    |
| UKRAINE                   | 8.5                       | 10.89                     | 1.05                      | 0.65                      |
| USA                       | 591.8                     | 501.29                    | 295.63                    | 42.89                     |
| VIETNAM                   | 409.4                     | 163.12                    | 38.11                     | 44.75                     |
| OTHERS                    | 526.8                     | 516.03                    | 453.97                    | 110.11                    |
| TOTAL                     | 5985                      | 5595                      | 4079.00                   | 1227                      |
| Source: JPC' *provisional | Source: JPC' *provisional | Source: JPC' *provisional | Source: JPC' *provisional | Source: JPC' *provisional |