The Indian Steel consumer industry has urged the Government to intervene and save the downstream steel consuming industry by arranging regular supply of iron ore to the steel plants, which has been hit following the recent Supreme Court order relating to mining of iron ore ban in Bellary and two other districts in Karnataka, causing panic among the small and medium scale units which depend on HR coil for running their units.
The HR coil consumers such as steel tube and cold rolling industries are worried about the future availability of HR coil because of reduced supply of iron ore to the HR coil producers. In 2010-11, out of India’s total iron ore production of 215 million tonnes, 100 million went for export, and balance 115 iron ore is available for domestic purpose. Due to ban on mining and government policy, industry association and consumers are worried about shortage of iron ore in India to the extent of 50 per cent. One of the prominent steel producers in the county JSW Steel, supplying HR Coil to a large number of down the stream HR coil processing units has recently announced to shut its plant because of non availability of iron ore in Karnataka.
Commenting on the issue, Federation of Industries of India (FII) Secretary General, H.L Bhardwaj said if the steel plants do not get regular supply of iron ore and they are forced to shut down, the non availability of steel like HR coil would create chaos. The shortage would impact the prices of HR coil and of the industrial goods like steel pipes, CR coil and sheets which are largely consumed by housing and the farm sector for irrigation and in water supply schemes run by the Government for the ‘aam adami’, he added.
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