INDUSTRY PROFILE

OVERVIEW
Steel is crucial to the development of any modern economy and is considered to
be the backbone of human civilization. The level of per capita consumption of
steel is treated as an important index of the level of socio-economic development
and living standards of the people in any country. It is a product of a large and
technologically complex industry having strong forward and backward linkages in
terms of material flows and income generation. All major industrial economies
are characterized by the existence of a strong steel industry and the growth of
many of these economies has been largely shaped by the strength of their steel
industries in their initial stages of development.

India’s economic growth is contingent upon the growth of the Indian steel
industry. Consumption of steel is taken to be an indicator of economic
development. While steel continues to have a stronghold in traditional sectors
such as construction, housing and ground transportation, special steels are
increasingly being used in engineering industries such as power generation,
petrochemicals and fertilizers. India occupies a central position on the global steel
map, with the establishment of new state-of-the-art steel mills, acquisition of
global scale capacities by players, continuous modernization and up gradation of
older plants, improving energy efficiency and backward integration into global
raw material sources.

India is currently the world's fourth largest producer of crude steel (knocking to
be the third largest by the year end) and is expected to become the second
largest producer by 2020. Steel production in India has increased from 81 million
tonnes (mt) in 2013-14 to 88 mt in 2014-15 with the capacity being increased
from 100 mt in 2013-14 to 110 mt in 2014-15. The steel sector contributes nearly
2% of the country’s GDP and employs over 6 lakh people. The per capita
consumption of total finished steel in the country has risen from 51 kg in 2009-10
to about 60 kg in 2014-15.

Steel industry derives its demand from other important sectors like infrastructure,
aviation, engineering, construction, automobile, pipes and tubes etc. With the
Indian economy poised for its next wave of growth under the reforms being
unleashed in the last one year, there lies tremendous opportunity for the Indian
steel industry to prosper and grow exponentially.

The Indian steel industry is largely iron-based through the blast furnace (BF) or
the direct reduced iron (DRI) route. Indian steel industry is highly consolidated.
About 50% of the crude steel capacity is resident with integrated steel producers
(ISP). But the changing ratio of hot metal to crude steel production indicates
toward the increasing presence of secondary steel producers in the eco-system.

IRON AND STEEL INDUSTRY IN INDIA

Introduction
Iron and steel sector is the backbone of an economy. It is one of the primary
vehicles of economic development of a country. The per capita production and
consumption of steel is the index of the depth of a country's economic
infrastructure. 1 Increase in the use of iron and steel leads to infrastructural
development and rapid industrialization of the country. According to Pandit
Jawaharlal Nehru, "Steel is a symbol of strength of the economy and a portent of
the glory of India of the future". Iron and steel are basic requirements for all types
of construction and manufacturing activities. It is used as a basic material of
manufacturing all types of machinery, electrical and metal products, transport
equipment, agricultural equipment, capital goods, house building etc. So all
industries have to depend on iron and steel. If we want to trace the story of steel,
we are to traverse the history of our civilization. The course of our present
civilization comes across the landmark gained in the process of development of
iron and steel. In fact, in the Indian scene, the history of iron and steel is the
history of our civilization.

Historical Perspective

During Pre-independence Period

Steel industry, a core of the core industries of Indian economy, started its journey
since ancient times. We find romance when we look at the historical record that
around 1750 Alexander the Great was said to receive three tons of crucible steel
from an Indian king. We have also record of a Persian king who bought crucible
steel from India. Thus India has a long heritage of steel making. Although steel
production process started in India thousand years ago, the modem steel
production technology started functioning only at the beginning of the 19th
century. In fact the growth of steel industry in India has been spectacular only
after independence. The first successful attempt was made in 1875 in setting up
an iron and steel works at Barakar by Bengal Iron and Steel Company. This was
taken over by Bengal Iron Company in 1889. This was the first attempt to produce
pig iron in India through modern methods. But the iron and steel industry in India
had a real beginning in the year 1907 after the establishment of Tata Iron and
Steel Company (TISCO) at Sakchi in Bihar. It was the dream of late Jamshetji Tata,
the father of Indian steel industry, whose career was a true example of industrial
romance. His dream came into reality in the form of establishment of TISCO, the
first large scale industrial unit in producing iron and steel by using latest scientific
methods in India. Setting up of Indian Iron and Steel Company Ltd. in the year
1918 at Burnpur in West Bengal was another landmark in the history of iron and
steel industry in India. The Steel Corporation of Bengal Ltd. was set up in 1937 in
association with Indian Iron and Steel Company for manufacturing steel. In 1923
the State Government of Mysore set up an iron works at Bhadrabati known as
Mysore Iron and Steel Works, thereafter named as Visvesvaraya Iron and Steel
Ltd. So before independence iron and steel industry in India consisted of four
units viz. the Tata Iron and Steel Company, the Indian Iron and Steel Company,
the Steel Corporation of Bengal and the Mysore Iron and Steel Works. Out of
these four units, only one unit namely Mysore Iron and Steel Works was a state-
owned unit, the remaining three were in the private sector.
Production and Present Position
India has now emerged as one of the significant steel producers in the world.
Presently total installed steel production capacity of India has been raised to
nearly 50 million tons. Domestic production of crude steel has grown at an annual
average compound rate of 6.1% and that of finished steel at the rate of 6% to 8%
between 1948 and 1980. During this period Indian crude steel output grew from
1.5 million tons to 15.1 million tons. Crude steel capacity of integrated steel
plants rose impressively from 1.5 million tons in 1950 to 8.9 million tons in 1968
at an annual average compound rate of 11%. The annual rate of capacity
expansion of this sector, however, stagnated between 1968 and 1985. The
seventh plan period showed an increase in ingot steel production from 10.81
million tons in 1985 to more than 14 million tons in 1990. The impact of economic
reforms on the steel industry in India has been tremendous. The total crude steel
capacity of Indian steel industry increased to 27.38 million tons in 1995-96
registering a growth of 23.6% i.e., 5.22 million tons over 1991-92. After
liberalization the iron and steel industry in India has made a considerable progress
showing an increasing trend in production of finished steel which reached to 31
million tons in 2001-02. The year 2004-05 proved to be a fortunate year for the
Indian steel industry because many of the steel making units were able to earn
profits or reduce their previous debts due to the increased demand in steel
consumption and increase in steel prices. In 2004-05 the finished steel production
was 40 million tons which was again increased to 49.39 million tones in the year
2006-07.

Steel demands massive investments in asset creation and funding working capital
requirements. External factors such as infrastructure facilities, international steel
prices, exchange rate and import duties also influence the profitability of steel
sector. The most attractive opportunity available to the Indian steel industry is
the vast potential that exists for improving demand for steel. India has plentiful
reserves of iron ore (13 billion tonnes) and present iron ore production capacity is
150 million tonnes. Yet India's per capita finished steel consumption is 30.3
kilograms as compared to the world average of 140 kilograms and developed
country's consumption level of 600 kilograms. India's present production of
finished steel is about 49 million tons which is much lower as compared to other
developed countries like China, Japan, USA, Germany, Russia and Korea. So the
performance of the Indian steel industry during the last decade, though
spectacular, has not been altogether smooth. The Indian iron and steel industry
has a wide range of forward and backward linkages with the rest of the economy.
This industry has been treated as a priority sector and it rose to the commanding
heights of the economy. It has tremendous growth potential. The domestic
demand for steel will increase significantly because of investment in
infrastructure and in other core sectors. The steel demand is directly related to
investments in secondary sectors like mining, manufacturing, transportation,
construction, power, electricity, gas and water supply. It will also generate
employment of more than 2.5 million people directly besides large indirect
employment. Thus improved growth in steel intensive sectors and rise in
investment in infrastructure should result in improved steel consumption. Iron
and steel industry in India, a century old industry has a strong and rich heritage.
This industry is on upswing stage because of strong domestic and global market.
Rapid economic development of our country along with soaring demand by the
sectors like infrastructure, real estate and automobile within the country and
abroad has placed the Indian steel industry in a position in the global scenario.
India is the eighth largest producer of crude steel in the world, producing a share
of 3.37% of world steel production in 2005. According to the latest report made
by International Iron and Steel Institute (ITSI), India is the seventh largest steel
producer in the world.

Problems of Indian Iron and Steel Industry

Though there has been a considerable progress in iron and steel industry in India
particularly after liberalization, still it has been facing some problems. These
problems are discussed below:
(i) Shortage of raw material base: The iron and steel industry in India has
been facing severe problem of having adequate quantities and desired
qualities of basic raw-materials like coking coal, nickel, ferro-molybdenum
etc. These often force the steel plants to restrict their production. Coking
coal available in India has a high ash content which adversely affects the
quality of iron and steel produced. With regard to other items of raw
material like fluorspar, chromite and wolfram, India is not still self-
sufficient.
(ii) Shortage of power : Power is an essential input required for each stage of
manufacturing iron and steel. Shortage in the supply of power disrupts the
production of steel.
(iii) Transportation problem : Poor quality of basic infrastructure like road,
railway, port etc. hampers the growth of Indian steel industry. Electrified
railway linkage among all production centres, sources of raw materials and
markets for convenient transport facilities is yet to be completed.
(iv) Increase in input cost and problem of administered price : Raw materials,
fuel and electricity constitute about 45% of the manufacturing cost in steel
industry out of which raw material itself accounts for nearly 35%. As iron
and steel industry is material intensive in nature, a small rise in material
cost has great impact on the cost of production. The prices of basic raw
materials like iron ore, coal, power tariffs have been rising considerably
over the years. Moreover the system of maintaining administered prices
for some inputs has put the Indian steel industry in a very tough situation.
(v) Under-utilisation of capacity : The Indian iron and steel industry has been
suffering from under-utilisation of capacity. Capacity utilization of all steel
plants was around 67 per cent in the year 1970-71, the highest was 86 per
cent in case of TIS CO. In 1977-78, capacity utilization increased to 84 per
cent with Bhilai Steel Plant attaining 94 per cent and TISCO attaining 98 per
cent. Thereafter capacity utilization declined again. During the period of
1987-88 to 1989-90, average capacity utilization was nearly 82 percent in
SAIL and 100 per cent in TISCO. In 1995-96 SAIL has attained full capacity
utilization. Except SAIL, other public sector units are operating below the
full capacity level. Inadequate supply of coal and power, extensive labour
trouble, transportation problem and inefficient management have led to
underutilisation of capacity which in tum resulted in high cost of
production.
(vi) Inefficient management : The major problem faced by Indian steel
industry is inefficiency in the functioning of steel plants particularly in the
public sector because of huge expenditure on social overheads, poor
management, poor industrial relation etc. The management often has to
face undue political interference, frequent labour disputes etc. (vii) High
cost of capital and low labour productivity : Steel, being a capital intensive
industry, requires huge investment of capital and cost of procurement of
such capital is high in India as compared to other developed countries like
 Japan, USA etc. In India labour productivity is still very low. Productivity of
labour is more than five times higher in western countries as against India.
The low wage rate in India is mitigated by low labour productivity.
According to a survey labour productivity in Korea and major steel
producing countries is about 600-700 tonnes per man per year whereas in
India it is only 90-100 tonnes.Z
(vii) Lack of technological development: All Indian steel plants have not yet
c·ome under the preview of latest technology. The advantages of
abundance of raw material and cheap labour get offset by the lack of
modem technology. Indian steel plants are still using open-hearth process
and electric process for producing bulk of steel which requires excessive
electricity consumption. Power tariff in India is also very high as compared
to other countries. This also has an adverse cost effect on the production of
steel. Modem technology in production of steel includes Blast Furnace (BF)
and Blast Oxygen Furnace (BOF) route which cannot be made use of by all
Indian steel plants, although the developed countries have switched over
the BOF route in almost all the steel plants. Besides, technological
obsolescence is a great cause of concern for a developing country like India
where capital itself is costly.

Challenges Ahead
Indian steel industry is facing challenges in global steel scenario on
different aspects. Cheap import has become a great cause of concern for
the Indian steel industry. Ever decreasing import duty on steel has made it
possible to fulfill domestic demand by importing at abnormally low prices
from steel surplus countries. Again high quality products at very
competitive prices are available for import and this poses a threat to the
Indian steel industry. On the other hand, Indian steel exporters have been
facing different non-tariff barriers in the global market. They are also losing
price competitiveness because of high cost of production due to high raw
material consumption, outmoded energy intensive technology, high
electricity charge and high transportation cost. Plastic in recent years has
emerged as a substitute of steel in some cases which causes a threat to the
Indian steel industry. Because of cost factor, plastic products are being
used increasingly. As a result consumption of steel has not increased. Use
 of substitutes of iron and steel in railway sleepers (RCC sleepers), large
diameter pipes (RCC pipes), small diameter pipes (PVC pipes) and domestic
water tanks (PVC tanks) in place of iron and steel products has reduced the
demand for iron and steel to some extent. In addition to the above, Indian
steel industry IS also lacking international competitiveness in terms of
quality and designing of product, distribution channel, on-time delivery,
post sale service, labour productivity, technological development,
managerial competence, research and development etc.
Prospects of Indian Iron and Steel Industry
(i) Abundance of raw material and manpower resources : India is rich in
mineral resources. It has abundance of iron ore, coal and other raw
materialsrequired for manufacturing iron and steel. It occupies fourth
position in iron ore reserves in the world. Though natural resources are
costly items, these are available in India at comparatively lower cost.
There is also abundance of manpower and the wage rate is low in India.
It has third largest pool of technical manpower in the world. With such
abundance of raw material and manpower resources, iron and steel
industry in India has a strong manufacturing base and golden opportunity
to grow.
(ii) Unexplored rural market : Domestic rural market has been identified as
a potential area for significant consumption of iron and steel in different
rural applications. But this market still remains unexplored as effective
steps have not yet been taken. Application of steel products in cost
effective manner in meeting rural needs will increase per capita
consumption of steel. So Indian steel industry should strive and adopt
necessary measures to explore the vast potential of the domestic rural
market.
(iii) Market potentiality in other sectors : There is also vast potential of
increasing steel consumption in other allied sectors such as automobile,
construction, engineering, packaging and irrigation sector in India. Steel
industry, in fact, has achieved momentum with the rapid growth of
automobile and construction sector during recent years. Indian iron and
steel industry should enlarge its spectrum of products by enhancing its
product range for meeting the requirements of all these sectors. Latest
technology must be adopted by the Indian steel makers to improve the
quality of products with reasonable price for increasing the application of
 steel products. There is a need for collaborative research between steel
and other allied sectors for market development. Rise in the pnces of
steel products has adversely affected the consumption of steel and
increased the consumption of plastic products as cheaper substitutes
during the last few years. Demand for steel product is price sensitive for
a country like India having low per capita income. So the domestic steel
prices should be fixed on the principle of 'what the market can bear'.
Exploration of domestic market will lead to the future growth of iron and
steel industry in India
(iv) Potentiality in global market: Apart from vast domestic demand, there
is a bright prospect in India to develop a global manufacturing and
outsourcing base for iron and steel products. In a study conducted by
Kellogg School of Business on the manufacturing competitiveness of 15
countries, it is revealed that India is the most competitive place for metal
based manufactured products. There is ample scope to develop exports
of steel products for the use of automobi]e, construction, oil and gas
sector. Massive thrust has been given for exporting iron and steel. The
Government of India has set up the 'Steel Exporters Forum' as an
interactive body to promote the cause of exports. As a result of this,
export has increased significantly. The recent development in South East
Asian economies has also provided additional marketing opportunities
for the Indian iron and steel industry. It is estimated that world steel
consumption will be doubled by 2025 and consequently Indian iron and
steel industry will acquire a substantial share in export market.
(v) Structural I Infrastructural advantage : There has been a structural
change in the iron and steel industry in India. Previously this industry was
reserved for the public sector. Many restrictions were imposed on the
private sector in setting up new plants. But after liberalization, this
industry has been opened to the private sector. It is now seen that this
industry has successfully made a transition from the public sector
dominated controlled economy to a market driven economy. The new
steel plants assimilated latest steel making technology like MBF-EAF,
Corex, Romelt etc. Many steel plants have made an advancement
through massive modernization programme to crop up emerging
opportunities. India has been playing a vital role in the production of
steel by the use of non-coking coal through Direct Reduction Technology.
 Considering the abundance of non-coking coal in the country and
considering the possibility of utilizing it as a basic raw material in steel
making, many sponge iron plants have been set up in different parts of
our country with the initiative of Sponge Iron India Limited, a
Government of India enterprise. India has also been playing a pioneering
role in the production of steel by the recycling of scrap generated during
iron and steel making leading to considerable savings in energy and
natural resources. With these there is ample scope for the reduction of
production cost and thereby keeping selling price at a competitive rate to
stand in the global market. Considering the strengths and weaknesses, it
can be said that iron and steel industry in India is required to pay much
attention to remove the areas of disadvantages like low labour
productivity, high energy consumption, unsatisfactory quality of coking
coal, under-utilisation of capacity etc. There is a need for the Indian iron
and steel industry to adopt new technology, modernize plant and
machinery, intensify research and development, develop customized
products, improve quality and service, explore new markets and develop
work culture and organizational efficiency. It has to build upon its own
competitive advantages like abundance of raw material, cheap labour
etc. With such strength of raw material and manpower resources along
with vast unexplored domestic market and access to the global market,
Indian iron and steel industry has the potentiality to face the challenges
successfully.

COMPANY PROFILE

Mr.R Sundar is the founder of Raj Industry, Alappuzha, Kerala .

Establishment year of Raj Industries Raipur is 1982. Raj Industriesis an
integrated manufacturing firm and one of the fastest growing industry
with a strong presence in the wire drawing industries. The company’s
success story is backed by an extraordinar y history. With the help of
our skilled team, Raj Industries manufacture a variety range of Hb wire
& manufacturer of wide range of BINDING Wires & HOT DIP
GALVANIZED Wires that are obtained from annealing wires. Our range
of wires to the requirements of various manufacturing of nails, cycle
spokes, tying applications in the field of construction. All the products
that Raj Indusrties offer to our clients, are strict control on quality.

Mission
“Meet and exceed our customer expectations”." To achieve our go als in
a stipulated time and courtesy towards our clients, employees and
society at large"

Vision
Our vision is "To be a globally respected corporation that provides the
best and economical wire mesh products which will be delivered by
best-in-class people"

Quality Assurance
Over the years we have build proper infrastructure & stepwise we have
made almost all manufacturing facilities in-house. This has helped us to
maintain & manage our benchmark quality.

PRODUCTS

 HB Wire
 Binding wire
 G A Wire
 Welded wire mesh
 Barbed wire
 Chain link fencing wire

WIRE DRAWING

Drawing of wire from metal rod is a metal working process that reduces the cross-
section and elongates in to wire. During wire drawing the volume of metal
remains the same and hence there is increase in the length of the drawn wire. A
significant advantage of drawing is that there is very little material waste. It is
carried out by pulling the metal rod through a single or a series of the drawing
dies. In the case of series of drawing dies, the each subsequent drawing stage
uses smaller bore diameter than the previous drawing die. The draw ratio of
diameter depends on elongation and plastic de-formability of meta; Drawing is
usually performed in round sections at room temperature, however, it is also
performed at higher temperatures for large wires to reduce forces.

PRODUCT & ITS APPLICATION:

Wire/rod drawing is an important industrial process, providing commercial

products. Wire products cover a very wide range of applications which include
smaller diameter rods used for shafts of different diameter for machine and wire
rods for structural components, blanks for bolts, rivets, nails screws, fences,
spring wires pins, staples, needles, and many others. Commercial wire drawing
usually starts with a coil of hot rolled 9 mm diameter wire. The surface is first
treated to remove scales. It is then fed into a wire drawing machine which may
have one or more blocks in series. Wires are drawn from carbon steel, alloy steel,
stainless steel, etc. ferrous metals as also from aluminum, copper, brass, bronze
and many other alloys. Nonferrous wires are used in electrical power
transmission, viz. wires and cables, electronics systems and even in
semiconductor IC etc. packaging, motor and transformer windings.

DESIRED QUALIFICATIONS FOR PROMOTER:

Any graduate with experience in the field, preferably with engineering/ science
background.

MARKET POTENTIAL AND MARKETING ISSUES. IF ANY:

Construction, machinery and automotive markets especially present significant

opportunities for steel wire. Steel wires are also used in a range of infrastructure
constructions and many general engineering applications in machinery and heavy
equipment and marine industry. In the automotive industry, steel wires are used
for reinforcing tires to add to their strength and durability. Steel binding wires are
used to bind and fabricate complex steel reinforcement structures for building of
all types. Steel wire is of critical importance in automotive manufacturing for
controls, The projected increase in infrastructure and housing construction and
Automobile sector in the coming years is expected to benefit demand for steel
and other metal wire industry. Steel wire finds mission critical use in this sector as
drilling lines, geophysical cable, offshore mooring ropes and electromechanical
cable, and for mooring anchoring, towing, and lifting applications. There is a
plethora of growth opportunities for Indian steel wire market. Rapidly expanding
construction, infrastructure, telecom and manufacturing industries bode well for
the Indian steel wire market.

RAW MATERIAL REQUIREMENTS:

Various grades of steel and other metal e.g. copper wire rods are required. These
are available from 6 mm to 12 mm diameter size. Normally 6 mm wire is procured
for drawing. For higher diameter rods, in-house Rod breakdown machine or
outside job work is normally required. Other materials consist of lubricant powder
soaps of different grades and fuel for annealing furnace.

MANUFACTURING PROCESS:
Coating:

The surface of the bar or coil is coated with a drawing lubricant to aid cold
drawing.

Pointing:

Several inches of the input end of the bar or coil is reduced in size by swaging or
extruding so that it can pass freely through the first drawing die.

Drawing:

The drawing machine pulls or draws the lead wire bar or coil through the die in
single or multiple stages. The die reduces the cross section of the bar or coil,
shapes the profile of the product and increases length in each stage. In multi-pass
drawing wire passes through smaller and smaller dies. Material may require
annealing to soften the material and increase ductility, after certain stage
between drawing pass to remove hardening and brittleness due to cold work.

Finished Product:
The drawn product passes through final finishing die to get bright and/or polished
finish. Heat treatment is generally used to soften the material, to modify the
microstructure, improve mechanical properties and the machining characteristics
and get precise and uniform dimensional tolerances. The finished product is
tested for tensile and hardness testing, and measuring of the diameter. In case of
drawing of stainless steel or other materials, wire/rod has to be inspected and /or
treated. Surface preparation is done by pickling in acid (ferritic and martensitic
steels) or basic solutions (austenitic steels). The prepared skin is then coated with
lubricant. Cold drawing is carried out through diamond dies or tungsten carbide
dies till the desired diameter is achieved.

Drawing equipment

Drawing of rods of larger diameter is carried out on draw benches which consists
an entry table, die stand (which contains the draw die), carriage, and exit rack.
The carriage is used to pull the stock through the draw die. It is powered by
hydraulic cylinders or motor-driven chains. The die stand is often designed to hold
more than one dies, so that several bars can be pulled simultaneously through
their respective dies.
Wire drawing is done on continuous drawing machines which consist of multiple
draw dies, separated by accumulating drums between the dies. Each drum, called
a capstan or block, is motor driven to provide the proper pull force to draw the
wire stock through the upstream die. It also maintains a modest tension on the
wire as it proceeds to the next draw die in the series. Each die provides a certain
amount of reduction in the wire, so that the desired total reduction is achieved by
the series. Depending on the steel to be processed and the total reduction,
annealing of the wire is sometimes required between groups of dies in the series.
Draw dies
A typical draw die has four distinguishing regions. These regions are (i) entry, (ii)
approach angle, (iii) bearing surface (land), and (iv) back relief. The entry region is
usually a bell-shaped mouth that does not contact the work. Shape of the bell
causes hydrostatic pressure to increase and promotes the flow of lubricant into
the die and prevents scoring of wire rod/round being drawn and die surfaces. The
approach is where the drawing process occurs. It is cone-shaped with an angle
(half angle) normally ranging from around 6 degrees to 20 degrees. The proper
angle varies according to wire rod/round material. The bearing surface, or land,
determines the size of the final drawn wire/rod. It produces a frictional drag on
the wire/rod and also removes surface damage due to die wear, without changing
dimensions. Finally, the back relief is the exit zone. It is provided with a back relief
angle (half-angle) of around 30 degrees. The back relief allows the steel material
to expand slightly as the wire leaves the die and also minimizes abrasion if the
drawing stops or the die is out of alignment.

Draw dies are made of tool steels or cemented carbides. For hot drawing, cast-
steel dies are used because of their high resistance to wear at elevated
temperatures. Dies for high-speed wire drawing operations frequently use inserts
made of diamond (both synthetic and natural) for the wear surfaces. Cemented
carbide is composed of carbides of titanium, tungsten, nickel, molybdenum, and
tantalum. Cemented carbides are the most widely used for drawing dies due to
their superior strength, toughness, and wear resistance. Diamond dies are used
for drawing fine wire with diameters ranging from 2 micrometers to 1.5 mm. They
are either made from a single-crystal diamond or in polycrystalline form with
diamond particles in a metal matrix (compacts). Polycrystalline diamond is used
for wire drawing dies have longer die life, high resistance to wear, cracking or
bearing. Both carbide and diamond dies are typically used as inserts or nibs,
which are supported in a steel casing.

Drawing defects
Defects in the drawn wire/rod can be either due to the defects in the starting
material (seams, slivers and pipe) or can be introduced by the deformation
process.
Typical defects in a drawn wire/rod are centre cracking. The defect centre burst or
cracking (cupping) occurs for low die angles at low reductions. Centre cracks can
occur in drawn products due to larger die angle, lower reduction per pass, and
friction etc. Another major type of defect in drawing is seams, which are
longitudinal scratches or folds in the material. Seams can open up during
subsequent forming operations (such as upsetting, heading, thread rolling, or
bending of the rod or wire), and they can cause serious quality-control problems.
Various other surface defects (such as scratches and die marks) also can result
from improper selection of the process parameters, poor lubrication, or poor die
condition.
Because the materials being drawn undergo non-uniform deformation during
drawing, cold-drawn products usually have residual stresses. For light reductions,
such as only a few percent, the longitudinal surface residual stresses are
compressive (while the bulk is in tension) and fatigue life is thus improved.
Conversely, heavier reductions induce tensile surface stresses (while the bulk is in
compression). Residual stresses can be significant in causing stress-corrosion
cracking of the part over time. Moreover, they cause the component to warp if a
layer of material subsequently is removed such as by slitting, machining, or
grinding.
Rods which are not sufficiently straight (or are supplied as coil) can be
straightened by passing them through an arrangement of rolls placed at different
axes.