Steel Production Consumption Export by India

Indigenous Production of Steel
The Minister of Steel, Shri Beni Prasad Verma has said that under the proposed National Steel Policy, significant growth in the indigenous production of steel is envisaged. The National Steel Policy 2005 provides for various measures to promote the growth of the steel industry including the following:(i) Prepare and implement an action plan for achieving the strategic goal of 110 MT of steel production by 2019-20, with separate plans for the growth of flat and long products. Prepare and implement road maps for technological and productivity improvements benchmarking them to global standards. Monitor the implementation of the National Steel Policy. Conduct reviews to remove infrastructural, procedural and institutional bottlenecks and to achieve policy coordination among central Ministries and State Governments.

(ii)

(iii) (iv)

In a written reply in the Rajya Sabha today Shri Verma said, Steel Authority of India Limited (SAIL) is a profit making Public Sector Undertaking and profit after tax during FY 2011-12 and 2012-13 was Rs.3543 crore and Rs.2170 crore respectively. Details of Plant-wise profit/loss of SAIL for the period 2011-12 & 2012-13 are as under:(Rs. in Crores) Plant / Unit 2011-12 2012-13 Bhilai Steel Plant (BSP) 2715 2048 Durgapur Steel Plant (DSP) 503 553 Rourkela Steel Plant (RSP) 646 363 Bokaro Steel Plant (BSL) 703 308 IISCO Steel Plant (ISP) -411 -159 Alloy Steels Plant (ASP) -53 -120 Salem Steel Plant (SSP) -155 -420 Visvesvaraya Iron & Steel Plant (VISL) -131 -117 SAIL Refractory Unit (SRU) 11 10 Chandrapur Ferro Alloy Plant (CFP) 10 -39 Raw Material Division (RMD)/Central Units 1313 813 SAIL (Profit Before Tax) 5151 3241 Tax 1608 1070 SAIL (Profit After Tax) 3543 2170 Shri Verma said, no budgetary support is being given by the Government to SAIL. Major reasons for lower profits or losses are as under:(1) Sharp Decline in prices of Steel products.

(2) (3) (4) (5) (6) (7)

Old and outdated technology and equipments at ISP, ASP & VISL. Over capacity and adverse market conditions particularly in Alloy & Stainless Steel. Increase in price of major inputs like coal, railway freight, power & fuel, manganese ore & royalty on minerals etc. High fixed cost of operations of loss making plants like ISP, ASP, SSP, VISL & CFP. Sharp depreciation in value of Rupee. Impact of capitalization of modernized facilities at SSP.

SAIL has already launched modernization & expansion plan at its five integrated steel plants at Bhilai, Bokaro, Rourkela, Durgapur & Burnpur and special steel plant at Salem to enhance its crude steel production capacity from 12.8 Mtpa to 21.4 Mtpa in the current phase. The indicative investment for current Phase of Modernization & Expansion is Rs.61,870 crore. Besides, a provision of Rs.10,264 crore has been made towards investment in existing mines under Raw Materials Division (RMD) & development of Rowghat Mine, the Minister added.

Ministry of Steel 29-August-2013 15:36 IST
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Consumption/Export of Steel Products
The Minister of Steel, Shri Beni Prasad Verma has said that the details of iron ore and finished steel produced, consumed and exported during each of the last three years are given below: Finished Steel Year

2010-11 2011-12 2012-13 (provisional) Iron Ore Year

Production for sale (in million tonnes) 68.62 75.70 77.62

Real consumption (in million tonnes) 66.42 71.02 73.33

Export Quantity (in million tonnes) 3.64 4.59 5.25 Value (in Rs. crores) 17511.40 21399.80 25874.50

Production (in million tonnes) 207.16 167.29 135.85

2010-11 2011-12 (provisional) 2012-13 (provisional)

Domestic consumption (in million tonnes) 105.23 110.98 124.80 @

Export Quantity (in million tonnes) 97.66 61.74 18.37 Value (in Rs. crores) 41295.86 33911.75 10372.02

[Source: For finished steel - Joint Plant Committee; Ministry of Steel; For production and consumption of iron ore – IBM, Ministry of Mines; For export of iron ore – MMTC, Department of Commerce; @ Industry Sources (ASSOCHAM) for estimated iron ore requirement] In a written reply in the Rajya Sabha today Shri Verma said, profits and turnover of steel companies depend upon a number of factors such as source of raw materials, scale of operation, cost of manpower, etc., of which supply of iron ore is only one of the factors. The production of iron ore in India is in excess of the total estimated domestic consumption by the iron and steel industry. The Minister said, fiscal measures have already been taken by Government to discourage export of iron ore and to improve availability of iron ore for the domestic iron and steel industry at affordable price. An export duty of 30% ad valorem is presently levied on all varieties of iron ore (except pellets).

Ministry of Steel 29-August-2013 15:36 IST
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Production of Steel in Country

The Minister of Steel, Shri Beni Prasad Verma has said that data on production of finished steel in the country, its import, export and real consumption during 2009-10, 2010-11, 2011-12, and 2012-13 are given below:-

Year 2009-10 2010-11 2011-12 2012-13*

Total Finished Steel Production for sale 60.62 68.62 75.70 77.62 Import 7.38 6.66 6.86 7.87

( Unit: Million Tonnes) Export 3.25 3.64 4.59 5.25 Real Consumption 59.34 66.42 71.02 73.33

Source: Joint Plant Committee (JPC); *provisional

In a written reply in the Rajya Sabha today Shri Verma said, India is a net importer of steel as may be seen from the table above. India needs to import small quantities of special and high valued steel, due to non/ inadequate availability of the same, to meet domestic requirements. Import of Steel into India was more than export of steel for the last financial year i.e. 2012-13 as well as for the Ist Quarter of 2013-14 as indicated in the table below:-

S. No. 1. 2.

Period

2012-13 April-June, 2013 (Prov.) Source: Joint Plant Committee (JPC)

Production for Sale 77.62 19.57

Import 7.86 1.33

Unit: Million Tonnes Export Net Real Import Consumption 5.25 2.61 73.33 1.13 0.19 17.76

The Minister said, the Government has taken the following steps to increase the steel production:(i) The Public Sector Undertakings (PSUs) namely Steel Authority of India Ltd. (SAIL), Rashtriya Ispat Nigam Ltd. (RINL) & NMDC Ltd., are in the process of Implementing significant expansion in the crude / finished steel capacities in their respective Brownfield /

Greenfield locations. (ii) An Inter Ministerial Group (IMG) has been set up by the Government for effective coordination and to expedite implementation of various investment projects in the steel sector. (iii) Import of critical raw materials for steel industry such as coking coal, non-coking coal and scrap are subject to zero or very low levels of customs duty. (iv) To encourage domestic value addition and improve domestic iron ore availability, duty on export of iron ore has been increased to 30 per cent. (v) The Ministry of Steel routinely consults the industry to be apprised of the constraints to growth and recommends necessary corrective measures as and when necessary to other concerned ministries.

Ministry of Steel dated 22-August, 2013 15:35 IST

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Production and Consumption of Steel on Next page

The Minister of Steel, Shri Beni Prasad Verma has said that data on production for sale, real consumption and stock of total finished steel (alloy + non-alloy) during the last three years and the current year is given below:-

Year

Total Finished Steel (alloy + non-alloy) (million tonnes or mt) Production for sale Real Consumption Available stock at the end of the year 2.347 2.894 1.824 1.626

2010-11 2011-12 2012-13* April-June, 2013-14* Source: JPC; *provisional

68.62 75.70 77.62 19.57

66.42 71.02 73.33 17.80

In a written reply in the Rajya Sabha today Shri Verma said, data on the volume and value of import of total finished steel into the country during the current year, i.e. April-June, 201314 is given below. Detailed data sheet showing item-wise value of imports is enclosed (Annexure-1).

Year

Import of Total Finished Steel (alloy + nonalloy) Volume (mt) Value (Rs. crore) 6786 1.33

April-June, 2013-14* Source: JPC; *provisional

Shri Verma said, data on the volume and value of import of total finished steel into the country during the current year, i.e. April-June, 2013-14 is given below for the top five import markets for India. Detailed data sheet showing country-wise value of imports is enclosed (Annexure-2).

Import of Total Finished Steel (alloy + non-alloy) : April-June 2013-14* Top 5 import markets Japan South Korea China Ukraine Germany Top 5 total % Share: Top 5 Source: JPC; *provisional Volume (‘000t) 372 275 242 103 67 1059 80 Value (Rs. crore) 1700 1414 1121 327 449 5011 74

Click here to see Annexure There is no specific information to establish whether the domestic steel industries have been affected adversely by import of steel, in the recent years, the Minister added. ***

Consumption of Steel in Country

The Minister of Steel, Shri Beni Prasad Verma has said that data on domestic production of iron ore, real consumption and import of total finished steel (alloy + non-alloy) for the last four years as given below shows a declining trend in domestic production of iron ore, a rising trend in real consumption of total finished steel and a rising trend in imports of total finished steel.

Item 2009-10 219 59.34

Production of Iron Ore* Total Finished Steel** Real Consumption Imports 7.38 6.66 6.86 7.87 Source: *Indian Bureau of Mines ** Joint Plant Committee (JPC) *** Provisional

Unit: million tonnes or mt 2010-11 2011-12 2012-13*** 208 167 145 66.42 71.02 73.33

In a written reply in the Rajya Sabha today Shri Verma said, Steel is a deregulated sector. Import and export of steel are market driven business activities based on a number of factors. Imports are taking place mainly to meet the gap between demand and supply of steel in the country. To that extent, imports help stabilisation of domestic prices and may help the consumers in the short run. However, imports have also have a detrimental impact on the domestic steel producers by taking away their market share, leading to pressure on domestic prices and consequently reducing the industry’s profitability and long term growth prospects.

Shri Verma said, the actual production and demand in the country during the last three years is as detailed below:

Year

Total Finished Steel (alloy+non-alloy) (in mt) Production for sale Real Consumption 2010-11 68.62 66.42 2011-12 75.70 71.02 2012-13* 77.62 73.33 Source: Joint Plant Committee (JPC) * Provisional ***

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