Continued from Part One.
Indian steel majors and representative bodies have been making demands. These include JSW Steel, which had said that Japan and Korea were dumping steel products in India at a “very low price.”
The Indian steel industry is expecting about 8 million tons of imports during the current fiscal year. Both Japan and Korea have replaced traditional exporters like Russia as leading exporters of steel to India.
MetalMiner had earlier this month reported that data released by the Government of India showed India’s finished steel imports had jumped 53.3 percent to 2.88 million tons in the first four months of this year starting April 2012, as compared to the previous year’s 1.88 million tons. India may be the 4th largest producer of steel but it is also now a net importer.
It now remains to be seen whether the upcoming steel policy takes note of these concerns or not.
Meanwhile, according to a report in The Business Standard, the drafted steel policy has pegged the country’s steelmaking capacity to reach between 244-281 million tons by 2025-26. The policy may try and find solutions to create an environment conducive for the growth of this industry that has been saddled with problems such as raw material scarcity as of late.
A committee headed by India’s steel secretary is finalizing the policy. It projects the country’s steel demand at 202 million tons (at 7 percent GDP growth) and at 233 million tons (at 8 percent GDP growth) by 2025-26, he said.
India’s production capacity in 2011-12 was around 90 million tons. The National Steel Policy of 2005 had pegged country’s steel production capacity at 110 million tons, but only by 2020.
Among other things, the new policy aims to help increase capital inflow, assuage concerns about raw material and means to overcome hurdles like land shortage.
Sohrab Darabshaw contributes an Indian perspective to MetalMiner.