Global Steel Industry Facing Surplus Production, Says Dharmendra Pradhan
A scrap box sits inside the steel tube mill unit in India. (Photographer: Dhiraj Singh/Bloomberg)

Global Steel Industry Facing Surplus Production, Says Dharmendra Pradhan

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Indian steel industry is facing some challenges amid the ongoing trade war between the U.S. and China, according to Union Steel Minister Dharmendra Pradhan.

The minister also noted that the global steel industry is facing the challenge of surplus production.

Pradhan was interacting with reporters on the sidelines of two-day International Galvanising Conference event in New Delhi.

When asked if the local industry could face challenges amid the ongoing U.S.-China trade war, the minister replied in affirmative.

"It's facing," he said, without speaking further.

Also read: India Ratings Revises Steel Sector Outlook To ‘Stable-To-Negative’

According to official data, share of imports of finished steel from free-trade agreements countries such as Korea, Japan and Indonesia aggregated around 70 percent of total imports to India in August 2019.

Earlier, speaking at the conference, the minister also said that India will become top energy consumer in the world in the next two decades.

"I don't know what is the finished product export quantity of (zinc products) to world market but I see being associated to petroleum sector for last five years that though we are importing crude oil, there is a huge scope for exporting petroleum products to the different part of world apart from our own market...today, in energy we are number three consumer in the world. In the next two decades, India will be the number one energy consumer of the world," he said.

Speaking about the areas of energy consumption, Pradhan said, "it will be consumed in transportation, household electrification, but primary consumption will come from industry. Industries related to manufacturing, industries related to services, related housing, capital good product etc".

Also read: Steel Tycoon Banks on Exports as Demand Plunges in India

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