New Delhi, June 25 While the steel industry has been demanding fiscal measures against cheaper imports, it is only since April that imports have surpassed last year’s volumes. And China only accounts for 1.36 per cent of the total imports, according to the Mr P. K. Rastogi, Secretary, Ministry of Steel.
Between April 1 and May 31, 9.51 lakh tonnes of steel were imported, up marginally from 9.20 lakh tonnes during April-May 2008. Of this, steel from CIS countries accounted for 2.61 lakh tonnes, or about 27 per cent. Steel from CIS countries was imported at an average f.o.b. (free on board) price of $365; recently it moved up to about $400.
Meanwhile, steel companies, including the Steel Authority of India Ltd (SAIL) have raised prices by about Rs 500 a tonne on certain products. Mr Rastogi said the demand from the rural sector led to a six per cent increase in consumption in May.
Last month, a Committee of Secretaries looking into the need for a safeguard duty for HR (hot-rolled) steel had asked that the user industries be consulted.
The Steel Secretary also added that the expansion plans of RINL and SAIL were on track, despite the setback in October-December.
The International Coal Venture Ltd, formed by NTPC, SAIL, CIL, RINL and NMDC, to acquire coal assets was recently incorporated and will appoint a Chief Executive.
With an authorised capital of Rs 3,500 crore, the company which has had talks over assets in Australia, Mozambique and Indonesia may find better prospects now.
The Ministry is hoping to expedite or take up together clearances and issues related to forestry particularly with the Ministry of Environment and Forests.
Source : Business Line