Last week, we discussed True steel use indicated by a WSA report and how it affects indirect trade in steel. The compilation of this data, which reflects the potential of steel consumption in the country, would need regular availability of a detailed, item-wise import export data for the same period ?which may be a constraint in our case. We also discussed about preparing an import data net of double counting, which would require capturing the final sales of item-wise steel import.
In the Indian context, it is difficult, but not impossible, for JPC.
The issue relates to the definition of steel and how it impacts the analysis of production and consumption. We must thank JPC for showing both alloy and stainless steel, along with non-alloy steel, in its production and consumption statistics. However, data on alloy steel needs more authenticity and analysis. It is interesting to see that the WSA defines steel comprehensively in the sense that it attempts to include some of the major steel-related activities.
It has also negated the strong belief that steel production and consumption data should be confined to only items under chapter 72 of the Harmonised System (HS) although JPC data includes Railway Track Material falling under chapter 73.02.
While the WSA data basically includes all long, flats and tubes that we find in JPC data, a few items under chapter other than 72 that form parts of steel output and consumption by WSA are ? seamless tubes (73.04), welded tubes (73.05/06), tube fittings (73.07), railway tyres (86.07) and drawn wires (72.17/23/29). It is difficult to presume the WSA is not aware of discrepancy in data composition while comparing steel production and consumption series in different countries.
It acknowledges the variation in definition, but for all major steel-producing countries, there is uniformity in the definition of steel.
There is no plausible reason why India, aspiring to be among the top steel-producing countries, should be outside the common platform of comparison. Apart from welded tubes and drawn wires, the number of producers in other items under chapter 73 is limited and, with little effort, it should be possible to compile regular data required for analytical purposes.
The corresponding data on import and export of the above steel items can also be easily captured.
The inclusion of the above items in steel production and consumption series of India would lead to an increased volume of at least 4-5 million tonne of steel and the net of double-counting would amount to 3-3.5 million tonne. This would be the gain in production and consumption of steel if India is able to capture the missing data and, in turn, the difference between the third and second positions in consumption and between the fourth and third positions in production is brought down.
The author is DG, Institute of Steel Growth and Development. The views expressed are personal