New Delhi [India], September 9 : The Indian Steel Association (ISA) has begun discussions with the government to make iron ore more affordable in order to bring down the cost of steel production, Secretary General and Executive Head of ISA Alok Sahay toldon the sidelines of ISA Steel Conclave at New Delhi.
"We want to make steel more affordable. Therefore, we are looking at how to reduce the input cost for making steel. We are in discussion with the government on how iron ore can be more affordable so that steel prices go down," Sahay said.
He added that the industry is also focusing on other external cost factors that make Indian steel less competitive compared to global standards. "Outside the plant, there are certain costs which are incurred by the Indian steel industry, if you compare it to the global standard," he noted.
According to Sahay, steel demand in India is projected to grow steadily. "The demand growth is somewhere around 7 per cent, 8 per cent. We will continue 8 per cent plus. But that's a very conservative figure minimum we have been projecting. We will grow in the next one or two years. The steel demand in the country this year was about 150 million tons. But we will grow by at least 7-8 per cent every year," he said.
On the government's support to the steel industry, Sahay pointed to the active engagement of policymakers. "We are very grateful to the commitment of this government towards the steel industry from all aspects, be it from the demand side or even this transition financing. Personally, even at the level of Secretary, they are attending our program, discussing, conveying, and thinking about it. It definitely is very encouraging for us," he said.
Sahay also mentioned ongoing government action on issues such as anti-dumping measures. "There was a safeguard which has come, and there's an anti-dumping petition against Vietnam which the government has announced action on. These are some of the actions," he said, adding that many countries globally are also taking measures on the steel side.
Speaking about decarbonization, Sahay said India remains committed to achieving net zero by 2070. "Our ISA members are committed much in advance of 2070 to achieve net zero," he said.
On trade with the US, he clarified that tariffs had not changed. "India has not been exporting steel to the US much. There was already a lot of duty from the US so far as steel is concerned. There is no change in the tariff. It was 50 per cent earlier, and it is 50 per cent now also, not only for us but for everyone. So there is no difference between India and others except the UK, which has 25 per cent for certain conditions," Sahay said.
"The Honourable PM has been talking about the steel industry as a sunrise industry. It's a more strategic sector. So, I think the government is continuously engaging the sector," he concluded.
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