TRENDS AND DEVELOPMENT IN STEEL SECTOR

Steel sector trends

• India is currently the 4^th largest producer of crude steel in the world as against its 8^th position in 2003.

·         India continues to maintain its lead position as the world’s largest producer of Direct Reduced Iron (DRI) or Sponge Iron.

·         The steel sector contributes  nearly 2% of the country’s GDP and employs over 6 lakh people.

·         The per capita consumption of total finished steel in the country has risen from 51 kg in 2009-10 to about 60 kg in 2013-14.

Production and Consumption of Steel

·        Capacity for crude steel production expanded from about 75 million tonnes per annum (mtpa) in 2009-10 to about 101.02 mtpa in 2013-14.

·        Crude steel production grew at 7% annually (CAGR) from 65.84 million tonnes in 2009-10 to 81.69 million tonnes in 2013-14.

·        Production for sale of total finished steel (alloy + non-alloy) stood at 87.67 million tonnes during 2013-14, as against 60.62 million tonnes in 2009-10, an average annual (CAGR) growth of 9%.

·        Real consumption of total finished steel (alloy + non-alloy) has grown at a CAGR of 7.2% during the last five years.

·        Domestic real consumption of total finished steel (alloy + non-alloy) was at 74.09 million tonnes in 2013-14 and increased by 0.83% on a year-on-year basis.

·        Export of total finished steel (alloy + non-alloy) during 2013-14 stood at 5.98 million tonnes while import of total finished steel (alloy + non-alloy) during 2013-14 stood at 5.45 million tonnes.

·        India was a net exporter of total finished steel in 2013-14.

MAJOR INITIATIVES AND ACHIEVEMENTS

Ø  The Steel & Steel Products (Quality Control) Orders, 2012, have come into effect from 1^st Oct 2014 on all 15 products having direct bearing on safety & security on human beings and infrastructure.

Ø  Expansion of two steel plants namely IISCO, Burnpur and Rourkela Steel Plant are ready to be dedicated to the nation, thus adding about 4.7 million tonnes of crude steel capacity.

Ø  Active engagement with Ministry of Mines, Coal and also Ministry of Environment and Forests has been undertaken for simplification of procedures.

Ø  Facilitated the formation of Indian Steel Association (ISA) to articulate the needs and aspirations of the steel sector of the country.

Ø  As a major step towards ensuring long term security in the supply of coking coal, ICVL has taken over the operating coal mine and coal assets of Rio Tinto in Mozambique.