STEEL
Steel is vital to the development of any modern economy and is considered to be thebackbone of the human civilisation. The level of per capita consumption of steel is treated asone of the important indicators of socio-economic development and living standard of thepeople in any country. It is a product of a large and technologically complex industry havingstrong forward and backward linkages in terms of material flow and income generation. Allmajor industrial economies are characterised by the existence of a strong steel industry andthe growth of many of these economies has been largely shaped by the strength of their steelindustries in their initial stages of development.Global Scenario
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World crude steel production for the 66 countries reporting to the World SteelAssociation (worldsteel) was 100.5 million metric tons (mmt) in October. This is12.4% lower than the same month last year and 6.9% below September 2008.
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Total world crude steel production was 1,136.2 mmt in the first 10 months of 2008, a2.9% increase over the same period in 2007. In October 2008, the world crude steelproduction moving annual total (MAT) growth rate further slowed to 3.0% from 4.7%last month.
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China’s crude steel production for October 2008 was 35.9 mmt, a decrease of -17.0%on October 2007 and -9.4% on September 2008. In the first 10 months of 2008,China produced 427.3 mmt of crude steel, an increase of 3.9% compared to the sameperiod in 2007.
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Japanese production was 10.1 mmt, down by -2.7% compared to the same month lastyear.
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India and South Korea showed an increase in October 2008, producing 4.8 and 4.6mmt of crude steel respectively.
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In the EU, Germany produced 3.9 mmt of crude steel in October 2008, a decrease of -7.7% from October 2007. Italy’s crude steel production was 2.6 mmt, down by -12.2% compared to the same month last year. France showed an increase of 16.1%from October 2007, producing 1.6 mmt in October 2008.
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In the CIS, 7.0 mmt of crude steel was produced, a decrease of -32.6% compared tothe same month last year. Russia produced 4.5 mmt, -27.1% less than in October2007 and Ukraine produced 1.9 mmt, a decrease of -48.7%.
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North American crude steel production in October 2008 was 12.9% below that of October 2007, but South America was just 0.8% down on October 2007.Steel sector trends in India
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India emerged as the fifth largest crude steel producing country in the world in theyear 2006 as against eighth position three years back. India is expected to becomethe second largest producer of steel in the world by the year 2015.
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India also maintained its lead position as the world’s largest producer of direct reducediron or sponge iron.
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The country is likely to achieve a Steel production capacity of nearly 124 milliontonnes by the year 2011-12.
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194 Memoranda of Understanding (MoUs) have been signed in various States with atotal planned capacity of around 243 million tonnes, and a total proposed investmentof over Rs. 5.15 lakh crore.
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Major investment plans are in the States of Orissa, Jharkhand, Karnataka,Chhattisgarh and West Bengal.
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Production, consumption and export of finished steel for the period April-December,2007 grew by 6.6%, 12.3 % and 9.1 % respectively as compared to the correspondingperiod of the previous year.Data relating to production, consumption, import and export of finished steel (alloy & non-alloy) and crude steel from the year 2002-03 onwards are reflected in the tablebelow:
2006-07
2007-08*
(April-December)
Production
52.529 40.117
Consumption
46.783 36.992
Import
4.927 5.325
Finished Steelincluding AlloySteel
Export
5.242 3.850
Crude Steel
Production
50.817 39.608
* Provisional
Source-Annual Report 2007-08,Ministry of Steel
Major initiatives taken by the Ministry of Steel during the year 2007-08
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An Inter-Ministerial Group (IMG) was constituted to monitor, facilitate and coordinatespeedy actualisation of major steel investments in the country.
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A Steel Pricing Monitoring Committee was formed for keeping track of steel pricemovements and to advise the industry on their product-mix as well as long-termcapacity addition.
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Present per capita consumption in the country is only around 46 kg (2006) against theworld average of 150 kg and that of 400 kg in developed countries. The awarenesscampaign to increase domestic steel consumption was intensified during the year.
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Preparatory action for take off of the ‘Steel Research & Development Mission (SRDM)’ in virtual mode with funding from main/ major steel producers was completed.
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Steel Technology Centre at IIT, Kharagpur to promote R&D in iron & steel sector wasapproved, at a cost of Rs. 22.26 crore for 5 years.
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Initiatives under Clean Development Mechanism (CDM) - Host Country Approval (HCA)to 58 proposals from the iron and steel plants in India accorded which will result inGreen House Gas abatement worth 66 million tonnes of CO2 equivalent.
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Under the Asia Pacific Partnership on Clean Development and Climate (APPCDC),Rourkela Steel Plant of SAIL has been selected. A team from Japan visited India during14th-17th January, 2008 for diagnostic study of Rourkela Steel Plant for identificationof gaps in energy efficiency and environment-friendly technologies.
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In the five year Plan for steel sector, a new scheme named ‘Scheme for promotion of R&D in the Iron & Steel Sector’ has been included with a budgetary provision of Rs.118 crore.
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A Quality Control Order on 17 selected steel products was issued by the Department of Consumer Affairs on 12th November, 2007 under which production, sale or distributionand storage of sub-standard products would be an offence with effect from 12th May,2008.
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A study on adequacy of infrastructure for the Proposed Expansion in Steel Capacitiesin the 11th Plan with special reference to the states of Orissa, Jharkhand andChhattisgarh has been completed.
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For resolving railway infrastructure bottlenecks, a Coordination Committee, consistingof representatives from Steel Industry, Ministry of Steel and Railway Board has beenconstituted.
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Reform of steel sector data was carried out to get accurate estimates of capacity andproduction figures and the existing database was updated on the basis of thecorrective exercises undertaken during the year.Crude steel: Trends in Production, Private/ Public SectorThe following table highlights the total as also the contribution of the private and public sectorin crude steel production in the country:
2005-06
2006-07
Public Sector
16.964 17.003
Private Sector
29.496 33.814
Total Production
46.460 50.817
% share of public sector
36.5 33.5Capacity Expansion
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