The domestic steel industry has started echoing the positive sentiments of the economy. As per the data released by Joint Plant Committee, the domestic consumption in Oct 20 was clocked at 8.65 mt, indicating an increase of 7.67% m-o-m.
Union Steel Minister Dharmendra Pradhan is bullish on increasing the per capita steel consumption, which at present is 74 kg. The industry body CII has been asked to submit a report in 30 days on how to enhance per capita steel consumption in India.
Some key initiatives taken by the govt to drive the domestic steel industry
- PM Gramin Awas Yojana : In the PM Gramin Awas Yojana, about 46.90 lakh t steel has been used and another 43.80 lakh t will be required by 2022.
- Pradhan Mantri Gram Sadak Yojana : Under the Pradhan Mantri Gram Sadak Yojana, about 102 lakh t steel will be required by 2022.
- Expansion of National Gas Grid to 27,000 km by 2022 : The govt is planning to increase India’s energy basket from 6.2% to 15% by 2022 and plans have been laid down for the expansion of National Gas Grid to 27,000 km from the present 16,200 km.
- Introduction of Scrappage policy to boost Auto Sales : The auto industry has agreed to a proposal by the Centre to offer a 1% discount on buying new vehicles if, correspondingly, an old one is junked and the Centre is also planning to exempt new vehicles from registration fees and road tax.
- Introduction of Pvt Steelmakers in upgrading the Indian Railway Track system : Indian Railways has embarked upon upgrading the Indian Railway Track system and projected a requirement of 1.8 Lac MT per annum of this high-grade Rails. JSPL’s Gr. 880 Rails has been approved by Railway Board/RDSO as a “Regular Supplier” to Indian Railways.
Performance Snapshot of Indian Steel Industry – Oct 20 vs Sep 20
- Crude steel production up 5.7% on month in Oct’20 : India’s monthly crude steel output was recorded 9 mn t in Oct, up by 5.7 % against 8.5 mn t in Sep’20. Steel output during the first seven months of FY’21 totaled 52. 36 mn t, falling 18.2% y-o-y due to pandemic.
- India’s finished steel exports plunge by 36% in Oct’20 : India’s finished steel exports in Oct month declined sharply by 36% m-o-m to 555,000 t against 864,000 t in Sep’20, JPC reported. Improved realizations in the domestic market lowered mill’s allocation for exports. The country exported total 7 mn t finished steel products during the period Apr-Oct’20 compared to 4.88 mn t CPLY. With this, the country stood as the net exporter of total finished steel during this period.
- Finished steel imports increased marginally : Imports in Oct 20 stood at 0.36 mnt, indicating an increase of 13.9% over Sep 20.
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