Indian Ministry of Steel considers logistics cost reduction measures
According to reports, Indian government officials said on July 2nd that the Indian Ministry of Steel assured the domestic steel industry that relevant measures would be taken to reduce logistics costs and control the total logistics costs to around INR4,000/ton.
The current logistics cost has been raised to 28%, and the junior steel minister Faggan Singh Kulaste has sought advice from the steel industry, claiming that the Indian government is concerned about the increase in steel production costs due to increased logistics costs.
India's steel production will reach 225 million tons by 2030, and about 800-850 million tons of steel-making raw materials will require transportation logistics operations and a large amount of infrastructure.
VR Sharma, Managing Director of Jindal Steel and Power Limited (JSPL) stated that the transportation cost of finished steel is about INR 8,000/ton, resulting in a 28% increase in steel production costs. The port handling cost also increased by 10%.
