Driven by several initiatives taken by the present government, like 'Make in India', smart cities, focus on improving sanitation and waste management facilities, building new infrastructure etc. are the main reasons behind rising demand of stainless steel in India which is going to last long. National Steel Policy released by the Ministry of Steel and implementation of GST (Goods and Service Tax) will give further impetus to Indian stainless steel industry to gain long term benefits.
Besides, protectionist measures imposing a definitive countervailing duty (CVD) on certain stainless steel products from China have helped the industry, he said.
The government had removed the import duty on nickel, a key material required to produce stainless steel. Now, the steel ministry wants the import duty on ferro-nickel and stainless steel scrap to be removed. This will further bring down the production cost of stainless steel in the country, he added.
Indian stainless steel production will reach the 3.6 MT (million tonne) mark at the end of 2017, industry body Indian Stainless Steel Development Association (ISSDA) has said. If the output crosses that level, then it will be about 9 percent rise in stainless steel production consecutively for two years - 3.32 MT (2016) and 3.0 MT (2015).
Also read: Boom in the Indian Stainless Steel Industry
“The production of stainless steel in the country at the end of the calendar year 2016 was 3.3 MT,” ISSDA president K.K. Pahuja said, citing data collected by the International Stainless Steel Forum (ISSF). “At present, we (the industry) are growing at a rate of 8-9 percent year-on-year,” he added.
With this rising rate in demand and stainless steel production India is almost certain to cross 4 MT mark in 2018. India is the second-largest producer of stainless steel after it overtook Japan in 2016 and China being the leader, which produces 24 MT annually. China's stainless steel production forms almost half of the world's stainless steel output of around 45 MT. In India, Jindal Stainless Group, state-owned Steel Authority of India (SAIL) and Mukand Ltd among others are some of the big producers of stainless steel. Jindal Stainless Group with an annual crude steel capacity of 1.8 MT, is the country's largest stainless steel producer.
(Source: PTI, edited)