India's 2020 Steel Sector Agenda Focuses on Curbing Steel Imports

SEATTLE (Scrap Monster): Amidst expectations of a “break out year” for the domestic steel industry, the Indian authorities have put forth an agenda for the country’s steel sector in 2020. The government announced that its primary aim would be to focus on measures that would bring down steel imports into the country.

In addition to reducing imports, the country aims to boost steel usage by taking advantage of the “Make In India” initiative. Apart from that, the government intends to keep close tab on domestic steel prices and exploration of alternative overseas sources for coking coal.

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With a large number of iron ore leases set to expire in March this year, the steel ministry will focus on effectively managing the iron ore availability at competitive rates to domestic steelmakers. Meantime, a few industry stakeholders and rating agencies have warned that the transition phase may lead to short-term disruption in iron ore supply.

The Indian government plans to expand its sources of coking coal imports. As part of this move, the government is already in talks with the Russian and Mongolian administrations in exploring the possibility of imports from those countries. Currently, tje country’s coking coal demand is met by imports from a few nations such as Australia, Canada and the U.S. Incidentally, nearly 85% of the steel industry requirement for coking coal is met through imports.

Meantime, the ratings agency ICRA said that the expected steel demand revival in 2020 is dependent upon boost to infrastructure investment by the Central and State governments.