PIB News Update: Union Minister for Steel Shri Dharmendra Pradhan has informed that The Government has taken steps to ramp up production of iron ore and steel to increase their domestic availability to bridge the demand-supply mismatch leading to increase in prices of iron and steel in recent months.
In a de-regulated, open market scenario, the domestic steel price is determined by market forces of demand and supply, trends in prices of raw materials and is also influenced by global conditions. Various factors contributing to increase in prices inter alia include increase in price of iron ore following its reduced availability with the production of iron ore in current FY being only 112 MT up to November, 2020 as compared to 152 MT during CPLY mainly due to non-operationalization of 13 working mining leases in Odisha, post their auction in March, 2020.
Measures taken by the Government to increase availability of iron ore inter alia include Mining and Mineral Policy reforms to enhance production/availability of iron ore, ramping up production and maximum capacity utilisation by government mining companies, grant of permission to SAIL to sell 25% fresh fines and 70 MT dumps and tailings, accelerating auction of iron-ore fines by SAIL and early operationalisation of forfeited working mines of Odisha by the State and Central PSUs etc.