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Singh notes steel sector challenges

Mills told to focus on value addition

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Mills told to focus on value addition

 

Tata steel enterance

The Indian steel sector faces multiple challenges such as transportation and logistics, weakening rupee and auctioning of mines after the current licenses expires in 2020.

Highlighting these challenges, Steel Minister Chaudhary Birender Singh pointed out that India was set to become the world’s second largest steel producer and leader in term of steel consumption over the next five to 10 years.

But the mills will have to focus on value addition and production as per country’s requirements.

“Attaining cost leadership, achieving best quality standards, producing wide range of products and maximum value addition will be crucial for maintaining our leadership position in the global steel industry,” Singh said at an ASSOCHAM event held in New Delhi on 14 Sept 2018.

Talking about the global challenges being faced by India’s steel sector, Singh highlighted trade issues with the US and European Union (EU), sudden change in Rupee exchange value, dumping of steel by other countries and fluctuation in raw material prices.

“At home logistics and transportation of raw material and finished products, upcoming expiry of mining licenses in 2020 and resultant auction of mines and others are few of the challenges,” he said.

He assured that the government is working in tandem with other stakeholders to overcome the challenges which are dynamic and large-scale.

“Our Ministry is keeping a close watch on international developments affecting steel market and are in constant touch with Ministry of Commerce and Finance Ministry to take remedial measures as and when required as we have done in the past.”

Highlighting the need to increase exports and decrease imports, he said, “That is possible only if our products are competitive and meet the price quality and delivery requirements.”

He added that India will have to go much beyond the minimum stipulated quality standards to become top quality steel producer.

“Steel producers in India both big and small, will have to move to clean and green technologies to attain self-sufficiency not only in steel production but also in building equipment and material for making steel plants is critical.” fiinews.com

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