New Delhi, Dec. 25 (PTI): The steel ministry today expressed serious concerns over rising imports and warned that unless the production of the alloy grew, it could spell a crisis for the domestic industry.
After due examination, we found that steel imports have shot up by 4.18 million tonnes (mt) between April and November this year against 2.3 million tonnes a year ago, an increase of 77 per cent. It is a cause for serious concern, a steel ministry official said.
Though production has improved by 6.7 per cent from 31.66 mt to 33.6 mt during the period, consumption, too, has grown by 12.6 per cent.
After reviewing the situation, it was found that in the absence of new capacities and rising input prices, small steel producers were being affected, so they were resorting to imports to meet their domestic requirements, he pointed out.
Iron ore spot prices have shot up more than $50 during the past few months, which have put small-scale producers at a disadvantage.