Government Engagement to Make Iron Ore Affordable Aims to Lower Steel Prices: ISA

The Indian Steel Association (ISA) has initiated discussions with the government to make iron ore more affordable, a move aimed at reducing steel production costs across the country. Speaking at the ISA Steel Conclave in New Delhi, Secretary General and Executive Head Alok Sahay emphasized the industry’s focus on making steel more accessible for both manufacturers and end-users.

“We want steel to be more affordable. To achieve this, we are exploring ways to lower input costs, starting with iron ore. We are actively engaging with the government to make it more accessible and cost-effective,” Sahay said. He highlighted that while internal production costs are important, external cost factors also affect India’s steel competitiveness in the global market.

The Indian steel industry is witnessing steady growth, with demand projected to increase by 7–8% annually. “This growth rate is a conservative estimate. Over the next couple of years, we expect continued expansion in demand, reflecting India’s growing infrastructure and industrial development,” Sahay noted.

The government’s role in supporting the sector has been significant. From policy interventions to transition financing, ISA members appreciate the continuous engagement of policymakers. “It’s encouraging to see government officials attending our programs and actively participating in discussions. Their support reinforces our commitment to achieving strategic goals,” he added.

Sahay also touched upon global trade and anti-dumping measures. The government has initiated safeguard actions and anti-dumping petitions, including cases involving countries like Vietnam, to protect the domestic industry. On decarbonization, the ISA reaffirmed its commitment to achieving net zero by 2070, with many members aiming to meet targets well before that deadline.

Addressing international trade, Sahay clarified that tariffs, especially with the U.S., remain unchanged. “India’s steel exports to the U.S. were limited, and current duties remain consistent at 50%, comparable with global norms,” he said.

With steel recognized as a sunrise sector by the Prime Minister, the industry is optimistic. Continuous government engagement, strategic reforms, and a focus on cost optimization are expected to drive growth, making steel more competitive globally while meeting domestic demand efficiently.