Indian Govt may Bring in Three More Steel Products under BIS by Nov- Sources

Indian government is planning to cover three more steel products under quality control order by November 2017, according to sources close to this matter told SteelMint

High-carbon steel wire rod, galvanised pre-coated sheets and zinc-aluminium pre-coated sheets are set to come under the steel quality control order. Approval is pending for quite some time but it is expected to be notified by next month, sources in the steel ministry said.

“We have already sent the proposal to include these three products under the mandatory quality control order and it is awaiting the concurrence of the BIS (Bureau of Indian Standards). Our intention is to ensure that quality products are consumed in the country,” an official said.

Currently, 38 products – 35 carbon steel and 3 stainless steel – are there which need to follow Steel and Steel Products (Quality Control) Order. These products include steel tubes, cold-rolled steel strips and stainless steel sheets and strips for utensils. Both domestic manufacturers and foreign exporters are required to adhere to the order to market them within India.

Apart from ensuring quality, quality control is enforced to rein in imports. However, the official said that imports of these items are not high, but the quality of the products, that are coming in, are of inferior grade and hence, the government needs to plug in their inbound shipments of such products. These products mainly come from China.

Sources said the imposition of quality control order on high-carbon steel wire rod might lead to a price hike as soon as the order is officially imposed since India does not produce the required amount, while two other products are sufficiently available within the country.

The quality control order prohibits manufacture, import, storage, sale and distribution of steel without the mandatory BIS mark. This is essential for the Indian steel to gain recognition and acceptability in the international market.

The government insists on improving the quality of the products, which has a direct bearing on the safety and security of human beings and infrastructure. Aimed at taking the steel industry towards a 100% quality regime, the steel ministry is likely to make BIS certification essential for most of the products.

The 38 products on which the quality control has been placed now cover around 70% of India’s imports.

Indian Imports  (2016 and 2017)

Quantity in MT
Source: SteelMint Stats.