Business

Steel imports exceed exports

KOLKATA: India has now become a net importer of steel with imports overtaking exports during the first seven months of 2007-08, Union Steel Secretary, R. S. Pandey, said. China substantially increased its exports to India, accounting for about 30 per cent (one million tonnes) of the total imports.

Talking to reporters ahead of the global steel meet, which began here on Thursday, he said between April and October 2007, steel imports stood at 3.6 million tonnes against an export level of 2.9 million tonnes. “For the first time imports have overtaken exports,” he said.

Imports had jumped by 79 per cent over the same period in 2006 when the figure stood at two million tonnes. Three Asian countries — Malayasia, Thailand and China — accounted for 60 per cent of India’s imports, which comprised special quality plates and API grade hot rolled coils (used mainly for liquid transportation) and some automobile grade steel. Some of these grades are not made in India now.

However, neither India’s largest steel producer Steel Authority of India Ltd nor the steel secretary seemed to be overly worried about this development. Mr. Pandey said that this was a good development as it was feeding demand and boosting steel consumption.

He said the Indian steel industry was growing at an “unanticipated growth rate”. In 2007-08, production growth is being estimated at 15 per cent against the 7.3 per cent projected in the National Steel Policy. Consumption growth too was high, mainly due to an expanding economy, rapid urbanisation and a booming construction sector.

To questions on iron ore (since the seminar is about raw material security), he said exports of high grade iron ore had dipped by 23 per cent during the first six months of 2007-08 while total exports were lower by three per cent. “Conservation has begun,” he said.

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