Steel market ushering to a new era

The Union Minister of Steel and Civil Aviation, Shri Jyotiraditya Scindia, stated that the government’s removal of export duties on steel and stainless steel will herald a new era for the nation’s steel sector and allow it to firmly establish its position in the global market.

The government had withdrawn the export duty on iron ore lumps and fines with less than 58 percent Fe content, iron ore pellets, and the specified steel products, including pig iron. The import duty concessions on anthracite and PCI coal, coking coal, coke and semi-coke, and ferronickel were also withdrawn. Delivering the keynote address at the third conclave of the Indian Steel Association (ISA) Shri Scindia said that the steel sector will not only restore its international footprint but will also reach new heights in a relatively short period of time in the domestic market.

Shri Scindia stated that the Prime Minister has put forth the mandate to enhance capital infrastructure by nearly Rs 17 lakh crore per year, thus increasing demand for steel by close to double digits (approx 10 percent per year). Further, he said that the steel sector has not just emerged from a difficult time during the peak of COVID-19, but has also emerged stronger, more resilient, global, focused, and committed. Our sector has witnessed a huge transformation during the past eight years, and has emerged globally from being the 4th largest producer to the 2nd largest producer and the 2nd largest consumer of steel.

He added that this transformational growth path was envisioned by Prime Minister Shri Narendra Modi in the form of an Atma Nirbhar Bharat by Shatabdi Kal in 2047. This mission of achieving self-reliance would involve boosting infrastructure and manufacturing, of which steel is a crucial foundational part. To that end, he also emphasised establishing a “Made in India” steel brand.

The policy of using domestic steel has saved Rs. 22,400 crores on steel imports, according to the minister. He urged the industry to adopt a circular economy approach, which would involve a gradual movement towards steel production from scrap. Further to increase domestic production, Shri Scindia said that the PLI Scheme (Productivity Linked Incentive) for speciality steel has received 79 applications from 35 companies, resulting in an investment of close to Rs 46,020 crore and increase in capacity of almost 26 million tons, and employment generation potential of nearly 70,000 people. This PLI scheme will provide new impetus to domestic steel demand in the coming months, he said.