UPSC Prelims Practice Questions — Steel prices at 4-year high; trend to stay in H2: report

Q1. Consider the following statements comparing India's coking coal import position across years and across coal types: 1. India's coking coal imports fell from 57.16 MT in 2021-22 to 56.05 MT in 2022-23, and fell further in 2023-24. 2. India's import dependence for metallurgical (coking) coal, at around 90% of requirement, is far higher than its import dependence for non-coking coal. 3. While Steel Authority of India Limited procures imported metallurgical coal under long-term agreements from Australia, the United States, Indonesia and Mozambique, the major portion of India's overall coking coal imports comes from Australia. Which of the statements given above is/are correct?

  1. India's coking coal imports fell from 57.16 MT in 2021-22 to 56.05 MT in 2022-23, and fell further in 2023-24.
  2. India's import dependence for metallurgical (coking) coal, at around 90% of requirement, is far higher than its import dependence for non-coking coal.
  3. While Steel Authority of India Limited procures imported metallurgical coal under long-term agreements from Australia, the United States, Indonesia and Mozambique, the major portion of India's overall coking coal imports comes from Australia.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. Under Mission Coking Coal, the targeted raw coking coal output for the year 2029-30 is expected to yield approximately how much usable coking coal after washing?

  • A. About 35 million tonnes of usable coking coal a year
  • B. About 48 million tonnes of usable coking coal a year
  • C. About 56 million tonnes of usable coking coal a year
  • D. About 105 million tonnes of usable coking coal a year

Q3. Consider the following statements comparing Mission Coking Coal with the National Steel Policy, 2017: 1. Mission Coking Coal is an initiative of the Ministry of Coal, whereas the National Steel Policy, 2017 was brought out by the Ministry of Steel. 2. The 140 MT figure under Mission Coking Coal is a target for domestic raw coking coal production, whereas the 300 MT figure in the National Steel Policy, 2017 is a target for crude steel capacity. 3. Mission Coking Coal seeks to make India entirely self-reliant in coking coal by eliminating all metallurgical coal imports by FY 2029-30, which the National Steel Policy, 2017 had left untouched. Which of the statements given above is/are correct?

  1. Mission Coking Coal is an initiative of the Ministry of Coal, whereas the National Steel Policy, 2017 was brought out by the Ministry of Steel.
  2. The 140 MT figure under Mission Coking Coal is a target for domestic raw coking coal production, whereas the 300 MT figure in the National Steel Policy, 2017 is a target for crude steel capacity.
  3. Mission Coking Coal seeks to make India entirely self-reliant in coking coal by eliminating all metallurgical coal imports by FY 2029-30, which the National Steel Policy, 2017 had left untouched.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. Consider the following features attributed to the blast furnace–basic oxygen furnace (BF-BOF) route of steelmaking in India: 1. Coking coal accounts for more than 30% of the cost of production of steel by this route. 2. Steel scrap, with or without sponge iron, melted in an electric induction furnace forms the principal metallic charge. 3. Producers operating this route are classified as primary steel producers. 4. Iron ore is reduced to hot metal, which is then refined into crude steel in an oxygen converter. Which of the above is/are NOT correct?

  1. Coking coal accounts for more than 30% of the cost of production of steel by this route.
  2. Steel scrap, with or without sponge iron, melted in an electric induction furnace forms the principal metallic charge.
  3. Producers operating this route are classified as primary steel producers.
  4. Iron ore is reduced to hot metal, which is then refined into crude steel in an oxygen converter.
  • A. 1 and 3
  • B. 2 and 4
  • C. 2 only
  • D. 1, 3 and 4

Q5. Consider the following: 1. Sponge iron made in coal-based rotary kilns using non-coking coal 2. Stand-alone electric induction furnace units melting steel scrap 3. Gas-based direct reduced iron plants using natural gas, feeding electric arc furnaces 4. Blast furnaces using coke and limestone to make hot metal from iron ore Which of the above is/are correctly identified as belonging to the secondary steel sector in India?

  1. Sponge iron made in coal-based rotary kilns using non-coking coal
  2. Stand-alone electric induction furnace units melting steel scrap
  3. Gas-based direct reduced iron plants using natural gas, feeding electric arc furnaces
  4. Blast furnaces using coke and limestone to make hot metal from iron ore
  • A. 1, 2 and 3
  • B. 2 and 4 only
  • C. 1 and 4 only
  • D. 3 and 4 only

Q6. Consider the following statements about hot rolled coil (HRC) and cold rolled coil (CRC): 1. CRC is obtained by further rolling of hot rolled coil at temperatures below the recrystallisation temperature of steel. 2. In September 2026, CRC was quoted at a higher price per tonne than HRC in the Indian domestic market. 3. HRC and CRC are long products, consumed chiefly by the construction sector as reinforcement bars. Which of the statements given above is/are correct?

  1. CRC is obtained by further rolling of hot rolled coil at temperatures below the recrystallisation temperature of steel.
  2. In September 2026, CRC was quoted at a higher price per tonne than HRC in the Indian domestic market.
  3. HRC and CRC are long products, consumed chiefly by the construction sector as reinforcement bars.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. Between 1 August 2026 and late September 2026, by how much per tonne did domestic cold rolled coil (CRC) prices rise?

  • A. By about ₹4,500 per tonne over the period
  • B. By about ₹6,000 per tonne over the period
  • C. By about ₹8,500 per tonne over the period
  • D. By about ₹11,000 per tonne over the period

Q8. The September 2026 assessment that domestic flat steel prices had touched a four-year high, and would stay elevated through the remaining quarters of FY 2026-27, was put out by which one of the following?

  • A. The Indian Steel Association, the apex industry body of major domestic producers
  • B. The Economic Research Unit functioning as a wing of the Ministry of Steel at New Delhi
  • C. The National Council of Applied Economic Research, an independent economic research institute
  • D. BigMint, a private commodity market research and price intelligence firm

Q9. Coal India Limited classifies non-coking coal on the basis of its gross calorific value into how many grades?

  • A. Seven grades, running from G1 to G7
  • B. Eleven grades, running from G1 to G11
  • C. Fourteen grades, running from G1 to G14
  • D. Seventeen grades, running from G1 to G17

Q10. The Production Linked Incentive Scheme for Specialty Steel is administered by which one of the following?

  • A. The Ministry of Steel, Government of India
  • B. The Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • C. The Department of Heavy Industry, Ministry of Heavy Industries
  • D. The Ministry of Mines, Government of India

Q11. Which one of the following is the body officially empowered by the Government of India to collect and report data on the Indian iron and steel industry?

  • A. The Indian Bureau of Mines, which functions under the Ministry of Mines
  • B. MECON Limited, the engineering and consultancy organisation at Ranchi
  • C. The Joint Plant Committee, headquartered at Kolkata
  • D. The National Institute of Secondary Steel Technology, Mandi Gobindgarh