6 Feb Steel Consumption

Press Information Bureau
Government of India
Ministry of Steel
06-February-2017 17:25 IST

Steel Consumption

The per Capita steel consumption of total finished steel stood at 63 kg. in the country (source: JPC) while for 2016, the world average was at 208 kg. (Source: World Steel Association, which reports data on a calendar year basis).  The level of consumption of steel in a country depends on a number of factors, including stage of development, speed of economic growth etc.

The consumption of total finished steel in rural India during last three years is given below based on a Study conducted by the Joint Plant Committee (JPC).  Government encourages increasing steel consumption in the country, including rural areas.

To lend support to the domestic steel industry and provide a level playing field, The Government has imposed Minimum Import Price.  As a result:-

1. Total steel import have dropped by 37% to 6.02 million tonnes during April – December 2016 as compared to the corresponding period last year.
2. Exports have increased by 64% to 5.8 million tonnes during April – December 2016 as compared to the corresponding period last year.
3. Post notification of MIP in February, 2016, prices increased till May, 2016 which subsequently declined again in June, 2016 before stabilizing with a modest rebound in August, 2016. Thereafter, prices maintained an increasing trend till January, 2017, with the current prices (of Hot Rolled/Cold Rolled Coils) about 40% higher than the pre-MIP prices (January, 2016).

In order to promote the country’s steel industry, Government has taken a number of steps including Notification of Mines and Minerals (Development and Regulation) Amendment Act, increasing Customs Duty, imposition of Safe-guard duty and Anti-Dumping Duty on a number of steel products.

This information was given by the Minister of State in the Ministry of Steel Sh. Vishnu Deo Sai in reply to a question in Lok Sabha today.

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