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Sat, Dec 28, 2024 | Jumada al-Aakhirah 27, 1446 | DXB
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Indian steel manufacturers can meet UAE’s supply demands, says minister
Ram chandra Prasad Singh, Minister of steel, India inaugurates the Steel week at India Pavilion at Expo 2020 Dubai. — Supplied photo
The UAE exports around 5.5 million tonnes of steel from other countries.
- By
- Anjana Sankar
India’s steel industry is poised to enhance production and fill the global supply gap as steel prices have soared due to the Russia-Ukraine conflict, said Union Minister of Steel, Ram Chandra Prasad Singh.
Speaking to Khaleej Times, the minister said India can also meet the entire supply demand of UAE for steel as India’s private steel manufacturers are ramping up production and also looking to forge mutually beneficial partnership deals with the UAE’s steel manufacturers.
“The UAE exports around 5.5 million tonnes of steel from other countries. That can be made from India, which is geographically close to the UAE,” said Singh who is in the UAE to inaugurate the ‘Steel Week’ at the India pavilion at Expo.
The prices of steel, Iron and other minerals have surged since the Russian invasion of Ukraine as both countries are major producers and exporters of steel and other minerals. Steel prices have jumped 20 per cent in the last month, according to Jindal Steel & Power (JSPL). Steel prices per ton cost about $1,200 in Europe, and the prices have hit around $1,100 in the Middle East and Africa region.
Companies from Europe, the Middle East and Africa are reaching out to Indian producers to meet the demand, according to Sharma.
“The conflict between Russia and Ukraine has created a debt shortage of about six to seven million tonnes steel per month in the world, and especially to the Middle Eastern and European countries country that in Middle East and North African country as well as to Europe,” V R Sharma, co-chair of FICCI Steel Committee told Khaleej Times. “So, these six million tonnes per month of gap is a huge gap. We wish that the war should stop as early as possible, but it will take some time. But for that Indian industry and the industry in UAE has a great chance to supply materials to the Menacountries and to the Europe,” said Sharma, who is also the managing director of Jindal Steel & Power.
He added that India will produce 130 million tonnes of steel in 2022. “This is a 30 per cent growth over the 2021 figures, that is post COVID. So, we are geared up fully to meet the entire input demand of UAE, which is about eight to 10 million. We can do that without any problem,” he said. Speaking about the capacity enhancement of India’s steel industry, the minister said India has a target to produce of 300 million tons of steel by 2030. “And for that, we need investment.”
Singh said the recently concluded Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE will offer the UAE easier access to India’s metal, minerals and petroleum products. About 90 per cent of India’s goods exports to the UAE are likely to be covered by the FTA. It will help create about a million jobs in India.
“India will offer UAE manufacturers opportunities to invest in India’s robust market, SEPA provides a very good framework for enhancing the bilateral trade between two countries,” said the minister.
“One of the important things that will be showcasing at the ‘Steel Week’ is the Production Linked Incentives (PLI) scheme to boost manufacturing of specialty steel in India. We are expecting investment of about Indian Rs 40,000 crores. And we will be offering incentives about $800 million for production facilities of steel in five categories in India,” said the minister. — anjana@khaleejtimes.com
Anjana Sankar
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