Steel Minister Jyotiraditya Scindia announced that the steel ministry is actively working to prevent a potential shortage of low-grade iron ore in India, amidst growing concerns from steelmakers regarding the export of this essential steelmaking ingredient.
Scindia addressed the issue on March 4 during the inauguration of Jindal Stainless’ inaugural green hydrogen plant, emphasizing the need for additional iron ore as steel production continues to rise in the country.
While Secretary of the Steel Ministry, N N Sinha, dismissed the possibility of imposing a ban on exports last week, reports suggest that smaller steelmakers have been urging the government to intervene to limit exports. Bloomberg reported their request for export restrictions, while Reuters mentioned the ministry’s contemplation of an export tax.
Notably, iron ore exports, particularly fines below the Fe (iron) 58% grade, along with pellets, surged to a three-year high of over 44 million tonnes in 2023, according to analytics firm SteelMint.
In response to these developments, the Federation of Mineral Industries (FIMI) highlighted that the production of iron ore in the April-November 2023 period reached 177.06 million tonnes, with domestic consumption standing at 135.14 million tonnes. FIMI advised against any export ban in a letter to the ministry on February 15.
Meanwhile, Scindia commended Jindal Stainless for unveiling the country’s first green hydrogen plant in the stainless steel sector. Situated in Hisar, Haryana, the plant is expected to significantly reduce carbon emissions by about 2,700 metric tonnes annually and approximately 54,000 tonnes of carbon dioxide emissions over the next two decades, according to the company’s statement.
