Status of New Steel Policy

The Minister of Steel, Shri Beni Prasad Verma has said that as the matter involves detailed discussions with various stakeholders and with different Ministries / Departments, at this stage it is difficult to indicate by when the new Policy will be finalised.

In a written reply in the Lok Sabha today he said, the prices of steel items in the domestic market have been fluctuating in accordance with the domestic market conditions, international steel prices, raw material prices and other inputs. A table indicating quarterly price movement in respect of HR Coil and TMT bar in the domestic market for the period from March, 2010 to February, 2013 is at Annexure I. A table indicating the quarterly price movement of critical raw materials like iron ore and coking coal for the period from March, 2010 to February, 2013 is at Annexure II.

The Minister said, although the prices of Coking Coal have decreased (in rupee terms) by 15.20%, there is an increase of 27.86% (in rupee terms) in the prices of iron ore during the last 3 years. However, the prices of steel products like Hot Rolled Coil and TMT bar have increased by 34.38% and 35.64% respectively during the said period. This is due to increase in cost of crucial raw materials, labour, transportation and other inputs.

Shri Verma said, Steel, in the country is a de-regulated sector. Accordingly, prices of various steel products are decided by individual producers based on market conditions including demandsupply scenario, trend of international steel prices, cost of raw materials and other inputs etc. Government has no direct role in fixation of steel prices. However, Government intervenes through fiscal measures, as and when need arises to maintain steady supply position and to boost steel production in the country.

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