Author: Paul Ploumis08 Jul 2014 Last updated at 07:25:13 GMT
NEW DELHI (Scrap Monster): The steel industry in India expects a rise in demand with the new government expected to bring the manufacturing and infrastructure sector on fast track. The sector has urged the government to revise the duty structure on scrap import. According to industry experts, the country produces less ore than needed. The sector has to depend on scrap imports as the only alternative source of raw material.
The steel demand in India grew only by 0.6% in 2013-’14 despite a healthier GDP growth of nearly 5%. The scrap imports by the country had declined during 2013. Higher import of scrap is expected to keep the ore prices under check. According to industry experts, as long as hurdles on ore mining are not cleared, the country will have to continue with its dependence on scrap imports.
In 2013-’14, the country imported 4.6 million tonnes of scrap from other Asian countries such as China, Taiwan and Korea. The scrap imports during the period fell heavily when compared with the total imports of 8 million tonnes during the previous year. The plunge in imports was mainly attributed to the fall in steel demand in the country.
The steel industry in the country is eagerly in anticipation of announcements with respect to fresh investment in infrastructure projects.
Incidentally, the stainless steel scrap imports by the country improved marginally from 589,500 tonnes in 2012-’13 to 605,940 tonnes in 2013-’14. The imports of cast iron, alloy steel, tinned steel, shredded and melting steel scraps plunged by almost 50% during 2013-’14.