Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

India has reduced steel imports by around Rs20,000 crore ($2.64bn) since the launch of Domestically Manufactured Iron and Steel Products Policy (DMISP) in 2017, said Union Steel Minister, Dharmendra Pradhan on Monday. The country aims to further reduce imports by mandating all government organisations to source domestic iron and steel products.

 

In 2017, India launched the National Steel Policy (NSP) which has an ambitious target of 300mn mt steel production by 2030 with an additional investment of Rs10,00,000 crore and the implementation of DMISP which supports domestic steel producers. The ministry has plans to create steel clusters to enhance downstream ecosystem, encourage small and medium enterprises in the steel sector, provide more employment opportunities and produce more value-added products.

 

India became the world’s second-largest steelmaker surpassing Japan and the US with record 111mn mt production in 2019. Despite the impact of COVID-19 outbreak, the government is hopeful about recovery in infrastructural development that would drive the country’s steel consumption to higher levels in the coming days.

 

According to the national infrastructure plan, the government would invest around Rs102 lakh crore across sectors like civil aviation, roads, railways, energy etc. This would generate strong steel demand and through policies like DMISP promote maximum consumption of domestic steel.

 

India’s first continuous galvanized rebar (CGR) manufacturing facility was launch in Mandi Gobindgarh, Punjab on Monday. The plant is set up by Madhav Alloys in collaboration with the International Zinc Association. The project is also supported by Hindustan Zinc Limited. The plant will supply galvanised rebar to the construction industry. There is an increasing need for higher usage of zinc coating on to manufacture corrosion-resistant rebars. More than 75pc of the zinc used in India finds application in galvanising of steel products like sheets, pipes, structural, wires etc. India contributes 6pc to global zinc production and is the world’s fourth-largest producer of zinc.

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