(a) the per capita production and consumption of steel in the country;
(b) whether the price of steel is higher in the country as compared to other
major steel producing countries;
(c) if so, the reasons therefor; and
(d) the steps taken by the Government in this regard?
MINISTER OF THE STATE IN THE MINISTRY OF STEEL (SHRI A. SAI PRATHAP)
(a) During 2008-09, the per capita production for sale of total finished steel was 49 kg. while
the per capita consumption was 45 kg.
(b)&(c): Steel is a deregulated sector in India and the price of steel in the country is determined
by the market forces based upon a multitude of complex factors such as cost of raw materials, process,
technology, quality of output and the demand-supply gap. Ministry of Steel monitors the indicative retail
market prices and the landed cost of import in respect of representative category of steel items. Moreover,
it is difficult to make comparison of steel prices in India with other major steel producing countries due
to the following reasons:-
(i) Economic policy regime including taxation, export and import duties and subsidies provided in various
countries are different.
(ii) Exchange rates of currencies may not reflect the real value of money.
(iii) Quality and grades may not be comparable.
(iv) Market price in each country is greatly affected by the prevailing supply- demand conditions
of the country concerned.
However, a comparison of domestic steel retail price in respect of a representative category of steel
items vis-Ã -vis the landed cost of import, as in Delhi market is given below:-
(In Rs/tonne)
Item Domestic market price Landed cost Delhi region, January January 2010 2010
Wire rods 33,500 33,863
TMT 33,970 33,863
H R coils 35,590 33,021
Source: JPC