Excess Capacity in China Impacting Indian Steel Sector: Minister of State for Steel

Published: 16th December 2015 06:30 PM  |   Last Updated: 16th December 2015 06:31 PM   |  A+A-


NEW DELHI: Investments in the Indian steel sector have not been "very forthcoming" on account of factors such as excess capacity in China which stood in the range of 250-300 million tonnes (MT), Parliament was informed today.

"Investment in steel sector has not been very forthcoming especially from the private sector due to the prospects not being very encouraging," Minister of State for Steel Vishnu Deo Sai said in a written reply to the Rajya Sabha.

The Minister added this has been impacted due to factors like "...the present global excess capacity, particularly in China, which has a huge excess capacity of 250-300 MT leading to significant decline in steel prices and increased imports and resultant financial stress on the existing domestic steel companies."

To a separate query in the House on steel prices, Sai said the prices of steel items in the domestic market have decreased in the recent period due to various reasons like slow growth in domestic demand and cheap imports.

To another question on import of steel products, the Minister said: "There is no proposal to specifically restrict steel imports from Northern and Eastern countries."

Steel imports have significantly increased in 2014-15 and in the current fiscal, Sai added.

"This is on account of market dynamics relating to a global steel glut, slowdown of steel demand in important steel producing countries like China, which has led to slashing of international steel prices making attractive for imports into India," the Minister explained.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp