Pradhan wants fair trade practices
Steel demand in India, with per capita consumption do more than double to 160 kg by 2030, will drive capacity expansion at mills, Steel Minister Dharmendra Pradhan has told the Global Forum on Steel Excess Capacity in Tokyo on 26 Oct 2019.
India plans to invest US$1.4 trillion on infrastructure over the next five years as part of its US$5 trillion economic development, he said, pointing out that the current demand of 72 kg per capita consumption is low.
“We are determined to raise the per capita consumption of steel from its current low of 72 kg per capita to 160 kg per capita by 2030. India’s demand for steel shall always be the driver of its capacity expansion,” he stressed.
On excess capacity, Pradhan pointed out that steel sector in India is deregulated and is driven by market forces. As it is well known, India does not contribute or suffer from excess capacity.
“We are mindful and conscious of the problems, which originate from excess capacity, and thus respect the principles laid down by this forum,” he assured.
He noted that excess capacity globally had a devastating effect on the industry globally during 2015. After a brief recovery in 2016-18, the global steel industry is again passing through a difficult phase.
“Therefore, it is important that we take suitable measures to avoid a repeat of the situation of 2015, stressed the Minister.
He also appreciated the members of the Global Forum on Steel Excess Capacity for putting forth considerable effort in the process of information sharing and the review thereof.
Pradhan said the members’ willingness to share data on capacity and information on various direct and indirect support measures deserves praise.
“This is a unique first-time effort. Information sharing has enabled in formulating better response in terms of improvements for the global steel industry. It also improved our ability to understand the problem of global steel excess capacity.”
He called for concerted efforts to ensure that all actions are in line with fair international trade practices.
The Berlin Ministerial recommended that the market distorting subsidies and support measures which distort competition should be identified and removed. It also advised that Governments must not intervene to create such distortions in the market.
Transparency, enhanced communication and cooperation are steps in the right direction, Pradhan underlined.
Global Forum may address relevant steel-related issues, as economies are linked intrinsically with this sector. “We all have collective responsibility to address the concerns of the steel sector,” he added. fiinews.com
