The price is likely to go up with increasing demand in the steel-iron-steel market

Bhoo Bazar - Dilip Shah

Target to double raw steel production capacity: Efforts initiated to increase production of special grade types of steel

The steel (iron-steel) market and industry sector in the country has recently witnessed a rapid change in equations. There has been an increase in domestic steel production and now there are indications from the market and industry that the focus will be on increasing the supply of raw materials used in steel production and increasing the production of special grade steel in the new year of 2023. The production of steel in the country has increased by approximately ten percent in the period of 11 months from January to November 2022 to reach the level of 1134 to 1135 lakh tons. The production capacity of raw steel in the country has been 1500 lakh tonnes annually and the government has set a target of doubling such production capacity, government sources said. For this, the government is considering various measures for the overall development of the steel industry in the new year. And most of the informants are showing the possibility that efforts will be made in this direction in the budget that will be released soon. To increase the production of high-end alloys, the government launched the Production Linked Incentive PLI Scheme for Specialty Steel in 2021 and saw its accrual in the year 2022. Power in country, shipping. Railway, Auto Vs. The sector exclusively consumes special grade steel and has to rely on imports for this. Now in the new year, the government and the representatives of the industry will pay special attention to increase the production of such steel at home and reduce the reliance on imports, market sources are showing.

Meanwhile, the focus is also on increasing the supply of raw materials for steel production. Coking-coal (coal) is specially used in the production of steel. Such coking-coal has been imported into the country. Import of such coking coal needs to be reduced. In the financial year 2021-22, approximately 570 lakh tonnes of coking coal had to be imported to produce 1200 lakh tonnes of crude steel in the country. Various areas of coking-coal underground have been identified in the country. Coking coal is estimated to be around 34 to 35 billion tonnes underground in the country, of which around 17 to 18 billion tonnes have been mined.

Meanwhile, the government imposed an export duty on steel items in 2022 which was then removed recently. Besides, export benefits were also given. Such export incentives were provided under the Remission of Duties and Taxes on Exports Products (RODTEP) scheme. Such efforts were seen to be undertaken to increase India's share in the global steel market. Meanwhile, there have also been rumors that steel producers in India are considering a price hike in January 2023 this month. Flat-coated steel prices have recently increased by Rs.500 a tonne. China's steel export prices have increased in the world market. India's steel producers have recently withdrawn export offers, now there is a possibility that steel producers will put export offers at higher prices in the world market in January. Meanwhile, the cases of Corona have increased recently in China and due to this, the steel market has also seen a stir.

The price of hot-rolled coils ex-Mumbai was Rs.53,400 to Rs.53,500 per tonne, which is now likely to increase. Meanwhile, according to sources in the Indian Steel Association, due to the export duty, steel exports from the country have decreased by approximately 54 to 55 percent in the seven-month period from April to October 2022, and the import of finished steel has increased by 14 to 15 percent to 31 to 32 lakh tonnes during this period. In October alone, such imports have increased by 77 to 78 percent. Due to the Russia-Ukraine war in 2022, there has been a special increase in coal prices in the world market. Meanwhile, steel demand is likely to increase by 7 to 8 percent in the new year. On the whole, experts are hoping that the new year of 2023 will be better for the steel market and industry than 2022.