New Delhi: Domestic stainless steel production will reach the 3.6-million tonne mark at the end of 2017, industry body Indian Stainless Steel Development Association (ISSDA) has said. If the output crosses that level, it will be about 9% more than last year’s.
“The production of stainless steel in the country at the end of the calendar year 2016 was 3.3 million tonne,” 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% year-on-year,” he added.
The growth is in response to the rising demand for stainless steel, mainly from sectors such as auto, roads and highways, housing and the like, the industry veteran said, adding that the demand will keep rising every year.
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.
For 2018, the domestic stainless industry is expected to produce close to 4 million tonnes. India is the second-largest producer of stainless steel after it overtook Japan in 2016. China remains the leader.