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Will India Continues to be a Net Exporter of Steel?

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by - 11/27/2019 1503 Views

Steel is the backbone of the industrial development of any country. At present, India is facing a huge fall in the export of steel. So, it is aiming to expand the capacity of producing steel to increase the export and also to fulfill the demand.

Steel Scrap
Event - Chintan Shivir:
 
The Ministry of Steel recently organized the event “Chintan Shivir” at Manekshaw Center, New Delhi, to make India globally competitive in Steel Sector. All stakeholders participated in the event to make the Indian Steel Sector more efficient. The main objective of the event was to enhance the competitiveness of the Indian Steel Sector and to increase the steel demand for domestic consumption as well as for exports.
 
Steel Production in India:
 
In the meet, the Ministry of Steel Dharmendra Pradhan stated that the production of Finished Steel in India increased from 7.6 percent to 103.13 MT in 2017-18. He also added that India has the capacity of producing 140 Million Tonne and it produces over 100 MT of steel annually.
 
33.9% Fall in Steel Export:
 
According to the official data, the export of finished steel fell by 33.9 percent, accounting to 6.36 Million Tonne in 2018-19. While the import of steel advanced by 4.7 percent to 7.83 MT when compared to the last year. The Minister added that in the next two to three years, India will be in a position to remain the net exporter of steel for years with help of Chintan Shivir.
 
Scope of Chintan Shivir:
 
“India sometimes becomes an importer and sometimes an exporter,” said Mr. Pradhan. Currently, India is importing nearly 2 to 3 MT of Steel from other countries. The outcome of Chintan Shivir will make India an exporter within the next two years.  He also added that India will start to export steel to the countries, from where it buys Petroleum. So that an exchange of trade is expected to exhibit between countries.
 
Logo - Ispati Irada:
 
By launching the new logo to Steel Ministry “Ispati Irada” Mr. Pradhan said that we must all work together to increase the usage of steel in the country. He also said that the Eastern part of India is working to achieve Prime Minister Mission Purvodaya.
 
Eastern States will Triple the Steel Production:
 
The West Bengal, Odisha and Jharkhand are the three mineral-rich states that could help India to achieve 300 million tonnes of steel per annum by 2030, said the Union Minister Dharmendra Pradhan. He also added that “they have the immense potential and steel production capacity to achieve the target planned by the government under the National Steel Policy. The government is working on to make Eastern India, a steel hub and will strive to facilitate the growth of Indian Steel Sector”. The government has also planned to establish steel clusters across the nation to increase steel production.
 
China the Largest Steel Producer:
 
India has emerged as the second-largest steel producer in the world. But there is always a huge gap in the steel production capacity when compared with China. China produces more than half of global steel production followed by the US, India, Japan, and South Korea.
 
Steel from Scrap:
 
The major steel-producing countries like Japan, China and the USA are depending on steel scrap for steel production. According to the report, out of 1688 Million Tons, around 475 Million Tons of steel were produced from stainless steel scrap which is a secondary source. 
 
High Demand but Less Supply:
 
The consumption of steel in India is increasing in recent years. But the supply of steel is not sufficient to fulfill the demand which leads to the purchase of steel from other nations. The announcement of Scrapping Policy by the Indian government is expected to make a change in the Steel Sector by organizing the steel scrap that is generated within the nation.
 
Will the Scrappage Policy Raise Steel Export?
 
The recent announcement of Scrappage Policy is expected to channelize the steel scrap that is generated in the country. This will hike the production of steel which would turn India as an exporter of Steel. It is also predicted that this policy would play a major part in achieving the journey of 300 Million TPA by 2030. The high-quality of ferrous scrap will be used for quality steel production thus minimizing the dependency on imports.

Category : Metal

Tags : Steel Scrap, Stainless Steel Scrap


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About Anandhi Anthiran

Hi, I’m Anandhi Anthiran born at Kanyakumari, India. We are five members in our family. I have two younger sisters. About my schooling, I took my elementary education at Chennai. When I was 10 years old, our family got permanently shifted to Kanyakumari as it is our native land. Kanyakumari, the .... more info

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