October 10, 2022
The country’s top six steelmakers produced 18.29 MT of steel
The secondary sector produced 11.77 MT
Domestic steel consumption was 11.33% higher at 27.52 MT
During the May quarter, the government increased the export duty of iron ore by 50% and for a few steel intermediaries to 15%
India’s crude steel output increased by 2.56% to 30.06 million tonnes (MT) during the second quarter of FY23, according to a report from research firm SteelMint.
According to the report, the country’s top six steelmakers produced 18.29 MT of steel, whereas the secondary sector produced 11.77 MT. Last year, the country has produced 29.31 MT during the same quarter. During Q2 2021, large producers cumulatively manufactured 18.39 MT of steel, while 10.92 MT of steel was produced by the secondary industry.
Media reports said that domestic steel consumption was 11.33% higher at 27.52 MT, compared to the July-September production volume of 24.72 MT in 2021.
During the May quarter, the government increased the export duty of iron ore by 50% and for a few steel intermediaries to 15%. Additionally, It has waived customs duty for the import of raw materials, including coking coal and ferronickel, used by the steel industry. The purpose of this action was to boost the supply of raw materials for domestic steel producers.
Implication
Historically, countries with robust steel industries have been provided with a first-mover advantage. As steel contributes 2% to the country’s GDP and employs nearly three million people, directly and indirectly, the impact of India emerging as a major steel-producing country could be vital and provide a much-needed boost towards it achieving the US$5 trillion goal.
Source: Hindu BusinessLine