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Chief Editor
Rakesh Dubey, Tel: +91 91633 48159, E-mail: rakesh.dubey@mjunction.in
Executive Editor Dear Readers,
Tamajit Pain, Tel: +91 91633 48065, E-mail: tamajit.pain@mjunction.in
The year began on a positive note for the Indian
Editorial Board steel industry. India’s rank in the world order of
Dr Abhirup Sirkar, Professor Economics, Indian Statistial Institute (ISI)
steel production remained unchanged at fourth
Dr Amit Chatterjee, Consultant and former Advisor to MD, Tata Steel Ltd
Jayant Acharya, Director (Commercial & Marketing), JSW Steel Ltd with an output of 76.7 million tons, despite logging
K Ranganath, former CMD, KIOCL the highest growth of 4.2 percent among major
Vikram Amin, ED (Strategy and Business Development), Essar Steel Ltd producing nations in 2012. There was no change in the top three slots
Rana Som, Former CMD, NMDC Ltd with China, Japan and the US retaining their positions in respective
Advertising order. India was the world’s fourth largest steel maker in 2011 and 2010
Soumitra Bose, Tel: +91 92310 00232, Email: soumitra.bose@mjunction.in as well with a total production of 73.6 mt steel and 69 mt respectively.
Sumit Jalan, Tel: +91 91633 48243, Email: sumit.jalan@mjunction.in The country had clinched the third spot in 2009, but lost out to the
Subscription US since 2010.
Rachita Das, Tel: +91 91633 48045, Email: rachita.das@mjunction.in Does this signal anything for the industry? It surely does. It shows
Toll Free No.: 1800 4192 000 1. Press 8 for publication that even though India’s steel industry is faced with numerous hurdles
Email: publication.tbss@mjunction.in such as sluggish demand, raw material shortages, inflow of capital,
Design infrastructure and land acquisition, it is set to become a powerhouse.
Debal Ray, Sobhan Jas The pattern of steel demand would continue to change and
For suggestions, feedback and queries, please write to manufacturers who are able to roll out value-added products could see
steelinsights@mjunction.in their revenues improving. For instance, the product mix demand from
different sectors such as automobiles or real estate would vary. New
grades of steel and customised products would see more takers.
According to analysts, though there could be supply constraints in
India in 2013, steel prices are likely to remain under pressure due to a
steady stream of imports. Currently, India imports nearly 7-10 million
tons of finished steel. Meanwhile, the green field projects in the
country continue to encounter obstacles. Therefore, steel companies
are looking into brown field expansion. The global capacity utilisation
for steel mills is below 80 percent. However, it is more than 90 percent
Registered Office for India.
mjunction services limited, Tata Centre, 43 J L Nehru Rd, Kolkata 700 071 The big news is that India is set to get a new steel policy in a
Website: www.mjunction.in month. The policy is expected to iron out issues related to foreign direct
Corporate Head Quarters: Godrej Waterside, 3rd Floor, Tower 1, Plot V, Block DP, Sector investments, land acquisitions and environment clearances. The draft
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321, 3rd Floor, Ispat Bhavan, Bhilai Steel Plant, Bhilai 490001, Tel: +91 788 6451066, Tele/
has been circulated for final comments and it would be announced
Fax: +91 788 2221071 Bokaro: Room 19, Old Admin Bldg., Bokaro Steel Plant, Bokaro soon. The policy is also trusted to throw light on solutions to problems
827001, Tel/Fax: +91 654 2226132 Burnpur: SAIL - IISCO Steel Plant, Materials Building, plaguing the sector.
Order Department, Ground Floor, Burnpur 713325, Telfax: +91 341 2240107 Chennai:
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While dwelling on these various developments, in this edition
600 001, Tel: +91 44 64624733-35, Fax: +91 44 25216536 Durgapur: Room 618, Ispat of Steel Insights, we particularly focus on the foundry industry and
Bhavan, Durgapur Steel Plant, Durgapur 713203, Tel: +91 343 6510185, Tele/Fax: +91 343 examine how it is gearing up to meet challenges. Also, there is a
2586946 Jamshedpur: Kashi Kunj, Ground Floor, Road No. 02, Contractors Area, Bistupur,
Jamshedpur 831001, Tel: +91 657 6519985/86/90/91, Fax: +91 657 2230040 Mumbai: special feature on coking coal and met coke which delves on India’s
Jolly Bhavan II, 403, 4th Floor, 7 New Marine Lines, Mumbai 400020, Tel: +91 22 66510663, requirement for the key inputs and supply constraints going forward.
Tele/Fax: +91 22 66510662 New Delhi: C127, 2nd Floor, A One Plaza, Naraina Industrial
Area, Phase I, New Delhi 110028, Tel: +91 11 65661774/65413288, Tele/Fax: +91 11 Happy reading!
25897000 Noamundi: C/o TATA Steel Limited, Mines Purchase Cell, PO: Noamundi,
Singbhum (West), Jharkhand 833 217, Tel: +91 9204791638/9234368606 Rourkela:
Administrative Bldg., Room 624, 6th Flr, Rourkela Steel Plant, Rourkela 769011, Tel: +91
661 6514142/6511412
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any form or by any means without the prior permission of mjunction services limited. Please magazine Steel Insights. The Magazine has helped us to take informed
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Disclaimer: This document is for information purpose only. Certain information herein has magazine regularly.
been acquired from various external sources believed to be reliable. While we have taken
reasonable care to compile this report, we in no way assume any responsibility for any error Regards
or discrepancy in regards to information contained herein. Readers are requested to make Sushanta Ganguli
appropriate judgment without any prejudice or compulsion. Chief Sales Manager ( East), Tata Steel Ltd
6 | Cover Story
2 0 Green energy solutions need of the hour
34 Steel consuming sectors maintain
sluggish growth Foundry sector needs to focus on
36 Indian iron ore imports set to rise over sustainable growth
time India can tap global casting demand
39 Auto industry posts marginal growth in estimated at 110 mt and growing at 5-10%.
December
40 India ranks top in production growth
42 JSW expects steel demand to grow in
26 | INTERVIEW
2013-14 Tech upgradation need of the hour
44 Mining impasse hits Sesa Goa profits at HEC: Misra
HEC is planning to invest `750 crore for
45 Gujarat NRE reports higher Q3 profit
next four years on upgradation process.
despite sharp fall in met coke prices
29 | INTERVIEW
47 SAIL April-Dec steel production rise
marginally
48 Tata Steel annualized crude steel
production likely at 8.35 mt in 2012-13
Iron ore an area of concern: Sandvik
In India, revenue is approx. 20 percent below
49 RINL lights up ignition furnace at Sinter target on iron ore mining ban, lack of new
Plant No 3 projects.
50 Wining combination in flat products
equipment
55 BSP gets new Skin Pass Mill 30 | SPECIAL FEATURE
56 Industry pins hopes on steel demand India examines options as Chinese
growth demand chart coking, coke trend
57 Iron ore handling by major ports down By 2016-17, coking coal demand is
expected at around 90.2 mt and import
54.5% y-o-y in Apr-Dec
would more than double.
58 Railways iron ore handling up 13%
38 | FEATURE
m-o-m in Dec
59 Macroeconomic indicators of India
60 Global crude steel production rises y-o-y Proactive budget needed to solve
in 2012 issues: Nerurkar
61 Domestic flat & long markets Duty on steel grade limestone, dolomite and
iron ore should be reduced to zero
62 Domestic raw materials
T
he Indian foundry industry has indeed come a long
way since the time metal castings as an industry started
in the later part of 19th century. Since then, the Indian
foundry industry has been successfully facing the challenges of
producing high precision and high quality castings conforming
to international standards. In spite of that, experts feel that the
industry has a long way to go in order to establish itself as
the best castings producer in the world in terms of quality,
quantity, delivery and price.
Foundry sector
needs to focus on
sustainable growth
Tamajit Pain
Major constraints
The continued rise in prices of important
raw materials like pig iron, steel scrap, low
ash coke, ferro alloys and other material have
crippled the industry. The foundry industry
is under tremendous pressure but seem to be
working individually to face the situation. In
the last seven years, the price of major raw
materials started increasing substantially
from November 2007 and reached a peak in
September 2008.
K
olkata hosted the 61st Indian people indirectly.” The smaller units are needs to be taken in this regard.
Foundry Congress (IFC), an annual dependent on manual labour but most All foundries should work for a
flagship event of the Institute of medium and large units are partly or fully ‘green foundry’ concept. Minimization of
Indian Foundrymen (IIF) between January mechanized and many larger foundries emissions, efficient use of raw materials
27-29, on the theme “Building Brand India meet world-class standards. and energy, optimum utilisation of the
- The Casting Edge”. The event was held Major foundry clusters include process, recovering and recycling of the
concurrent with the International Foundry Jalandhar, Ludhiana, Batala, Agra, waste materials and substitution of harmful
Exhibition (IFEX 2013). Howrah, Pune, Mumbai, Belgaum, material are important facets of adopting
With over 800 delegates and 250 Kolhapur, Solapur, Rajkot, Chennai, green foundry techniques.
exhibiting companies, the 61st Indian Hyderabad, and Coimbatore. Ravi For foundries, focal points are air
Foundry Congress and IFEX 2013 Sehgal, chairman of the 61st IFC said: emissions, efficient use of raw materials
foundry exhibition drew over 4,000 “Castings produced include ferrous, non- and energy, waste reduction along with any
trade visitors. In addition to technical ferrous, aluminium alloy, graded cast recycling and re-use options.
presentations by Indian and international iron, ductile iron and steel for application The best available technique needs to be
authors, the IFC featured an Energy in automobiles, railways, power sector, used in order to optimise the management
and Environment Forum, Student pumps, compressors, valves, diesel engines, and control of internal flaws to prevent
Forum, Cast Source buyer-seller meet, cement, electricals, textile machinery, pollution. Also there is need to create better
prominent industry speakers and a host of sanitary pipes and fittings, engineering and better techniques for environment
international participants from Germany, industries, machine tools and special protection.
Italy, China, Japan, UK and USA. applications. Grey iron castings form the
Founded in 1950, IIF is an all-India majority at 68 percent of total castings Castings demand
industry association representing the produced.” Demand for castings is ever increasing. The
foundry sector and comprises foundries, “The theme for this year’s meet is present day demand for castings globally is
foundrymen, professors, academicians, ‘Building Brand India - The Casting estimated to be about 110 mt with product
foundry equipment vendors and foundry Edge’. Foundrymen must thus make value of over $150 billion. With 5-10 percent
input suppliers, with a current strength an effort to offer the right product mix, of expected growth, the demand for castings
of over 3000 members. Headquartered quality and price in order to reach out will increase substantially over a period of
in Kolkata, with four regional offices in to the world. Eastern India has taken up time.
Kolkata, Delhi, Chennai and Mumbai and the challenge to set up new foundries, The wind energy sector is expected
27 chapters across India, IIF is a member and with this the industry is once again to grow at 25-30 percent in the coming
of the World Foundry Organization growing in strength in India,” Sehgal said. years. The additional requirement for
(WFO), UK and of the Confederation of Anil Vaswani, joint secretary and ductile iron castings in the sector alone will
Indian Industry (CII). treasurer of the 61st IFC said: “The be approximately 1 mt of which India’s
Speaking on behalf of the domestic mission and vision of IIF is to make requirement will be 0.08 mt.
foundry sector, Harsh K. Jha, president, the foundry industry an attractive India has a stable domestic demand,
IIF said: “The Indian foundry industry proposition for all stakeholders, with which has helped the foundries to survive
is the second largest producer of castings government support, through technology the recent global meltdown. The order book
in the world with a production of 8 mt upgrades, competitiveness, enhancement position of most of the foundries who are
annually, behind China, which is far ahead of operational efficiency and capital equipped to produce quality castings is very
at 35 mt. There are more than 4,500 infusion. The focus is on development of good. India remains a high growth region for
foundries in India of which 85 percent are foundry clusters and common facilities for small cars, tractors and two wheelers. Demand
small-scale units, 10 percent are medium- foundries.” for castings in the domestic market is over 6
million tons per annum (mtpa) at present.
Industry experts feel that the world is looking With every supply the buyers give a list Benchmarking
at India as a source for their cast components of improvement expected in the next supply According to experts in the industry, there
and India can tap this opportunity. and current supply may be either rejected or is an imperative need for benchmarking
At present, the total casting export from accepted as a special case. Variable schedules of products to improve competitiveness.
India is over 1 percent of the total world are also a factor affecting foundries. Following are the areas where benchmarking
requirement. If all the foundries put their might, is required:
this share could go up to 10 percent providing Foundry cluster ♦♦ Rejection level
immense opportunity to our foundries. In both industrialised and developing ♦♦ Yield
countries, there is increasing evidence that ♦♦ Energy consumption
Rise in buyer expectation clustering and networking can help small ♦♦ Productivity
The foundry industry is facing challenges and medium enterprises to boost their ♦♦ Effective floor utilization
from industries all over the world. In this confidence. ♦♦ Raw material consumption
global competition the rule of survival of the Small scale enterprise clusters are ♦♦ Inventory level management
fittest will apply and only the best and the tools to effectively implement and support ♦♦ Delivery period
competent will survive the race. initiatives aimed at enlarging the production ♦♦ Development of lead time
According to industry experts, the only base, conquering market niches, accessing ♦♦ Emission level of dust and fumes
criterion for survival is quality, quantity, export markets, triggering growth, offering ♦♦ Generation of wastes
delivery and price. For the manufacturers the employment opportunities and redressing ♦♦ Manufacturing costs
message is to tighten their belts and fall in regional economic imbalances.
line quickly or be ready for the fallout. There are several successful clusters Future
In the global arena, the buyers’ functioning in India at Agra, Batala, The Indian foundry industry is expected to
expectations have also soared sky high and Belgaum, Chennai, Coimbatore, Howrah, grow at 10-20 percent per year for the next five
buyers just expect excellent quality of castings Jalandhar, Kolhapur, Ludhiana, Pune and to seven years provided proper government
as and when they need at a lower price. Buyers Rajkot. Foundry clusters and national policies are in place. Domestic and export
also expect continuous improvement. The cluster for export promotion of cast products demand and increased manufacturing and
castings which were declared ‘ok’ till now are together can bring a lot of comfort to the outsourcing activities could also take the
now being declared substandard and rejected. industry in coming years. industry forward.
Many industry players believe that based manufacturing base in India with 100 percent that export of poor quality castings by
on the present growth pattern, India will buyback arrangement. some of the smaller manufacturers would
advance her position shortly as the second The technology transfers and absorption result in poor image of Indian foundries
largest casting producer in the world, leaving in such cases would mean transfer of in export markets.
behind the USA which is presently in the knowhow, equipment and training of Indian • Capacity building among smaller
second position. foundrymen. These alliances would, however, foundries and the ability to meet customer
As the demand for good quality castings help abolish middlemen and trading houses requirements of machined castings
increase over time, foundries capable of who otherwise import castings at a minimal • Reducing long investment lead times and
producing and supplying castings as per price and supply directly to the foreign buyers. delays in environment clearances which
customer requirement will have a bright It will help the foundry operators to gain result in project uncertainty.
future. However, Indian foundries have to access to foreign markets with higher margins. • Meet cost challenges like increasing cost
convince the foreign buyers about their ability The industry feels that the following of raw materials, power, manpower etc
to produce cast products of global standards. goals need to be taken up by the Indian • To develop competitive overseas market
Moreover, to be globally competitive, foundries to improve their performance:
Indian foundries have to urgently upgrade • To establish India as the Asian hub for For achieving the above goals the
themselves technologically, train manpower cast components industry needs to take into consideration the
continuously and benchmark with global
• To implement schemes to attract and following initiatives:
standards to produce quality castings and to
retain the best manpower available in the • Indian foundries need to invest more
create a brand image.
country and abroad on R&D on various fields to reduce
It is expected that there will be ample
scope for Indian foundry operators to forge • To accept the challenge of greening the production costs and for producing high
alliance with their counterparts in the foundry industry quality castings consistently.
developed countries. A feasible approach is • To attract latest technologies from all • Reduce rejection of castings by mapping
through technology transfer by the foreign over the world best casting production processing
foundry to its Indian counterpart with equity • To adhere to delivery standards – quality, and refrain from adjusting production
participation with a view to establishing a quantity, delivery and price – it is feared processes without thorough study.
T
The industry will have to focus on
he Indian Institute of Foundrymen (IIF) a pan-India body representing the
sustainable growth and take steps to achieve
foundry sector, has entered into a MoU with the Japan Foundry Society, the
the following targets by 2020 in a phased
largest organization of foundrymen in the world, for Green Business Foundry.
manner:
The MoU was signed at the 61st Indian Foundry Congress which got underway in
♦♦ Production to go up to 25-30 million
Kolkata on January 27. The move will help implement cost-effective and eco-sensitive
tons per annum
‘green’ manufacturing standards across the country’s $12-billion foundry industry.
♦♦ The productivity per unit to go up to
“This comes at a time when a whopping `600 crore worth of investment is expected
4500 tons per annum
to be invested in the foundry industry in West Bengal and the rest of eastern India,” said
♦♦ Productivity per man to go up to 40 tons
Ravi Sehgal, chairman, organising committee of 61st IFC and IFEX 2013.
per annum
The three-day meet, being organised by IIF will have two concurrent events – IFEX
♦♦ Specific energy consumption to go down
2013 and Cast India Expo. It is being attended by over 800 delegates from China,
by 10 percent
Germany, Italy and Japan, which are major hubs of the global foundry industry.
♦♦ Increase share of aluminium casting to 15
“The 61st IFC has a range of programs and informative technical seminars
percent
addressed by reputed speakers, and an internationally attended exhibition of the latest
machines and technology. Also, cast buyers of repute will be visiting to source their
This is possible only by creating additional
annual requirements, and industry representatives will be discussing their perceptions
capacity by improved productivity by using
of the current scenario of the industry,” Harsh K. Jha, president, IIF said.
modern design and manufacturing tools,
With 9.9 mt cast components, India is ranked among the top three globally with
technology and processes and by promoting
annual exports of around $2 billion. However, its share in the global market is below 2
investments in modern plants, according to
percent.
Anand.
For example, for increasing the scale
of operations the model of China can be
• B enchmark all process parameters based manufacturing in GDP to 25 percent from
taken into consideration. China has 30,000
on best practices in similar units which present 15 percent and to create additional
foundries with average production per unit of
are performing well. 100 million jobs by 2022. 1,400 tons per annum. As per reports, they
• Benchmark pollution norms of the The other significant features are single plan to reduce the number of foundries to
developed countries to ensure minimum window clearance mechanism to cut red tape 10,000 and increase the per unit production
damage to environment and the high priority for skill development. to 5,000 tons per annum, thus closing down
• R&D to target for producing high quality The private sector will be given standard inefficient units.
strategic castings which command high deduction of 150 percent of expenditure for The Indian industry will need to invest
selling prices skill development institutes. an estimated $9-10 billion by 2020 in the
The government has notified 10 National next 10 years for capacity expansion and
• Improve manpower efficiency and
Manufacturing Investment Zones, which are upgradation to support manufacturing.
capabilities and providing education and
mega integrated townships with world class Thus although the foundry industry
training of foundry personnel at all levels
infrastructure. Moreover, the government is is successfully facing the challenges of
• Provide continuous training in modern offering a host of incentives like exemption
technologies producing high precision and quality castings
from capital gains tax and liberalised labour conforming to international standards, it
• There is a need for centralised R&D and environment norms to promote these has a long way to go to achieve the status
centres for foundry clusters with zones. of the best castings producer in the world.
necessary testing facilities and effective Also, the government is closer to Actions taken by the industry has been
participation of foundry experts. implementing the goods and service tax and showing positive results but there is a need
• Increased mechanization, monitoring has set ambitious power generation capacities to pay attention to R&D activities to reduce
and controls for improved productivity in the Twelfth Plan and plans to invest $1 production costs and for producing high
• Value addition by producing ready to use trillion during the Plan period (2012-17) in quality castings consistently.
components/sub-assemblies power and infrastructure. With 9.99 mt of casting production in
2011-12, India has become the third largest
Growth drivers Focus areas castings producer in the world. It is expected
The new National Manufacturing Policy The Indian foundry industry currently that shortly India will become the second
of the government of India approved generates revenue of $12.5 billion and exports largest casting producer in the world next
recently, envisages to increase the share of worth $2 billion. In this context, the role of only to China.
Energy use
Steel can be produced by using four different
routes and their energy requirements are also
different:
♦♦ B
last furnace – basic oxygen furnace –
continuous casting (BF – BOF – CC)
route
Tamajit Pain 1.4 kg per ton while NOX generation is
♦♦ D
irect reduction of iron ore - electric
approximately 1.8-2 kg per ton of crude
arc furnace – continuous casting (DRI –
I
ndia is emerging as an industrial nation steel. Slag and flue dusts are generated as
EAF – CC) route
in the world with significant economic solid waste which is about 1-1.4 ton per ton
of finished product. Fugitive dust emissions, ♦♦ S
melting reduction – basic oxygen
growth. Metallurgical industries are also furnace – continuous casting (SR – BOF
expanding rapidly particularly in primary ground water contamination and solid waste
disposal are the main problems, according to – CC) route
metal production providing growth in
economy, needed for a prosperous nation. industry experts. ♦♦ E
lectric arc furnace – continuous casting
Metallurgical industries are known as This not only affects the flora, fauna, (EAF – CC) route
hazardous and polluting industries since terrestrial and aquatic ecology but also
BF-BOF-CC route is the oldest method
they generate huge amount of solid wastes health of the population in the vicinity of the
of making steel and is dependent on a
like slag, tailings, red mud, heavy metals, plant. The environmental problems can be
particular energy source (metallurgical coke)
anode slimes etc toxic effluents, flue gases, minimized by decreasing the energy use by
which has limited supply in the world. 31.1
discharges of thermal emissions and noise are undertaking short and long term goals. The
GJ energy is needed for steel making by the
common with the process. short term goals include conducting energy
primary route starting from iron ore. The
For example, steel production process audit to know the energy use or loss pattern,
actual value of energy consumption can
(BF-BOF) is highly energy intensive and avoiding and reuse of waste energy and
vary from the best available technique in the
releases about 2.3-3 tons of CO2 per ton adopting energy efficient technology.
world to 16.7 GJ per ton. The blast furnaces
of crude steel. SO2 emission ranges 1.2- The long term project should involve
consume maximum energy (54 percent) of
the total requirement of the process, which to cause combustion and minimize the
nearly 31 GJ per ton of steel. nitrogen content in the gas. A typical unit
Since 1970, efforts are being made to requires 36.9 GJ energy by consuming 1 ton
minimise the coke rate and replace it as far of coal and 700 m3 of oxygen to produce 1 ton
as possible by other energy sources such as of steel and 4700 kWh power. This process
oil and coal, depending on the availability produces two products (steel and power) with
and economics and had been decreasing as a nearly equal energy intensity share. This is
result of substitution by oil and non-coking the reason why such plants are called steel
coal injections. and power plants. The power generated in
To find an alternative for metallurgical excess of its own need is exported to national
coke, the DRI-EAF-CC route was developed grid. The plant technology involves coal
in 1970s that used non-coking coal or gasification and its use for reducing iron
natural gas as the main energy source for iron ore. In this process the excess reducing gas
making. The iron thus made was converted consisting carbon monoxide is utilized to
into steel using electric arc furnace. The non- generate power.
availability of such large quantity of electrical The fourth route (EAF – CC) is a very
energy was restricting the growth of the steel old method of steel making which has gained
sector. Both coal and natural gas can also be importance in the recent times in view of
used as the primary energy source to produce the energy crisis. This method involves the
DRI using two different technologies. The
melting and casting of steel which requires
coal based DRI plants use 12.6 GJ per ton
less energy. Typical EAF steel melting uses
energy, while has based plants need only 9.5
2.44 GJ of energy to produce 1 ton of steel.
GJ per ton for producing sponge iron as the sector (power plants) the third route (SR-
This energy is derived from 410 kWh per
product. BOF-CC) was evolved in 1980. This is the
ton electrical power (1.47 GJ) and heat
In case of coal based plants, the unused most recent method of steel making using
of oxidation of Carbon (0.56 GJ), silicon,
energy is more than 70 percent mainly in the non-coking coal and oxygen as the main
manganese etc. In addition, 0.16 GJ of
form of waste char and hot gases. The waste energy sources. Many processes under this
energy is provided by burning some fuel to
char and hot gases are exploited for power group have been developed but only two
generation to avoid wastage. The char is preheat the scrap.
technologies (COREX and FINEX) have
pulverized and fired in boiler to raise steam Thus energy requirement is different for
reached the commercial stage. The COREX
to generate power. In case of gas based plants, four different routes of steel making and use
plant, first in India and third in the world,
the heat loss is much less and further effort is was initiated in 1999 at Bellary by JSW. The of energy is different due to technological
needed to recover heat from flue gases. The commercial FINEX plant is planned to be set changes. However, efforts have been taken
spent gas is recycled in the system thus reducing up in India for the first time by Posco near reduce energy consumption in every process.
the demand for the fresh energy source. Paradip in Odisha.
To become non-dependent on electrical Energy efficiency
The COREX plant uses non-coking coal
power which comes from a different industrial as the energy source along with pure oxygen Foundries are energy intensive production
units where adoption of the best energy ♦♦ O perate the furnace at its constant rated to solve the ecological problems rooted
solution provides great energy saving power with the use of fossil fuels. Therefore,
potential. ♦♦ Install an automatic power factor efforts should be made to find green energy
According to foundry industry officials, controller solutions through hydrogen as a renewable
♦♦ Cooling towers with change of blades reductant and energy source for the iron and
currently foundries are effectively recycling
from aluminium to FRP steel industry.
their materials. More than 90 percent of all
♦♦ Introduction of low wattage compressor According to experts in the field,
cast parts are made from re-melted scrap
♦♦ Replacement of partially loaded motors hydrogen is an ideal reductant for iron
metal.
with smaller capacity motors making since it can be produced without any
The costs for energy and materials in ♦♦ Use of natural light through the use of undesirable gases in it. The product of the
foundries are in average responsible for 40 transparent roofing sheets reduction reaction is water which would be
percent of all costs. Melting and solidifying ♦♦ Replacement of high speed diesel fired recycled in the nature without resulting in
metals require a high amount of energy. burners with furnace oil fired burners any environmental problem. The hydrogen
Physical laws determine an average energy ♦♦ Replacement of conventional copper has been used successfully to produce high
input of 2000 kWh per ton of final casting ballast with HF electronic ballast quality iron on a commercial basis in the
product. This adds up to a total energy ♦♦ Replacement of filament indication world by H-iron techniques.
consumption of 18 billion kWh. lamps in control panels with LED lamps This method is not used presently in
The foundry industry is energy intensive ♦♦ Use of 36 watt slim tubes instead of 40 the normal iron and steel production due
and has an important role to play from an watt conventional fluorescent tubes to economic reasons however this may be
environmental point of view while seeking ♦♦ Increase emissivity of heat treatment possible in future if hydrogen gas in available
to develop and play an important role in the furnaces by coating the hot face in abundance as a renewable energy. It may
development. also be possible to modify the currently
According to industry experts, some Green energy used gas based process for DRI production
energy efficient processes that need to be Although efforts have been made to reduce exploiting pellet or lumps in hydrogen,
followed include: energy consumption in the past, one has industry sources said.
are expecting
H
eavy Engineering has become difficult. Technological we miss one of R Misra, Chairman & MD, HEC
upgradation, however, is now the biggest them.
Corporation Ltd (HEC), the
need. Without further investment on We are also in the business of turnkey
public sector integrated
upgradation, it is impossible to move projects from designing till commissioning
engineering complex based out of
forward. of projects. So orders also come in from
Ranchi, has been battling the odds
of technological obsolescence and there.
What is the proposed investment for this
lack of skilled manpower for some upgradation? What is the demand scenario at present?
time now. That has been adversely
We are currently planning to invest about As far as the demand scenario is concerned,
impacting the profitability of the
`750 crore for the next four years on this PSUs are delaying their orders. At the
company of late.
upgradation process. We are not planning same time, private sector customers want
In a free-wheeling conversation to build any new plant but we want to make
with Steel Insights, the chairman to procure the products at a lower cost as
our existing plants energy efficient. We are they are in a cost cutting mode. Hence,
and managing director of HEC, R. consuming about 750 Kilowatt of energy at it is getting difficult for us to match their
Misra, said that only a successful present. It can come down roughly to about requirements.
technological and infrastructural 600 Kilowatt once upgradation is done.
upgradation can boost the profit
Are you focusing on any particular industry
margins of the company. Plans are Are you collaborating with any other at present for business?
being chalked out accordingly, company for this technological
We are looking at the steel plants. The coke
he said. He also spoke about the upgradation?
oven batteries, especially, have become very
state of the mining industry and the Being a public sector company, we have to old and there is a need to change them.
present order book of the company. pass through a transparent tendering system Earlier they used the wet quenching system
at every stage. We will tie up with whichever but now they need to use dry quenching
Excerpts: company clears all requirements and comes system. Batteries also need to be changed.
through the process. These usually work for 15 years but they
What will be HEC’s focus area and plans in have already crossed 20 in most of the SAIL
the near future? What is your outstanding order book right plants. Hence, an immediate change is the
now? need of the hour.
We have been making profits for the last six
years, but even that has been very nominal. Our outstanding order book right now is
Turnover has increased by only one and `1,700 crore. However, as we are passing What are your offerings for the Indian
half times. Technological obsolescence and through a recession now, there is a delay in mining industry?
lack of trained manpower are some of the placing of new orders. Mainly we are in the In the lower range we have 5 m3 shovels and
main reasons for such low profits. We need business of supplying equipment to steel 10 m3 shovels all of which are electrically
younger people with new ideas to carry this plants and SAIL, for instance, has already operated. So, these require electrical lines
company forward. placed its orders for the modernisation and the cables should be drawn to such
Perfection is an important component process. points where these machines are being used.
of the foundry business. The slightest defect We are also supplying another big machine
in casting can get it rejected. That is why The pace of orders in the mining sector has called drag line for overburden removal in
it has now become imperative that the also slowed down. Are you expecting any opencast coal mines. The weight of the
old plants should be replaced as they have improvement in the scenario? machine is about 2,000 tons and the system
become obsolete. The machine building We have already submitted tenders against a costs about `150 crore.
tools and forging plants were set up in the lot of requirements by various companies. It We have received an order from Coal
early 1960s with equipment imported from is a fact that the orders are being hampered India Limited for three such walking drag
the erstwhile USSR and Czechoslovakia. owing to the current situation. However, we lines. We have already supplied one and
and Chiplun.
Sandvik
development
centre in
Bangalore. Its
businesses in
India include
Steel Insights Bureau captive coal blocks. This had both positive materials
and negative effects. There were a lot on technology,
S
andvik Mining is a leading controversial things, but also some positives tooling, mining Soumitra Banerjee, President,
global supplier of equipment coming out of it. and construction Sandvik Mining India
and tools, service and technical Currently, iron ore is an area of concern equipment.
solutions for the mining industry, and for us. As I said, a sizeable chunk of our Overall, Sandvik has its presence in
their products span the entire range revenue comes from this segment. Goa has India for nearly 60 years now. Our total
including rock drilling, rock cutting, stopped exports altogether. Production has
turnover from the Indian operations is
rock crushing, loading, hauling and been affected substantially in Karnataka.
around `2,600 crore.
material handling. The progress of captive blocks is very slow.
Sandvik AB subsidiary Sandvik In Odisha, steel mills are affected due to
What is your current market share in India?
Asia Ltd has its headquarters in various government notifications restricting
mining of ore in the state. In India, competition is intense. There are
Pune and manufacturing units in five
Overall, the Indian government is a number of international players present
places. President of Sandvik Mining
working on various policy initiatives to in the mining equipment sector. Almost
India, Soumitra Banerjee, talks to
properly develop the mining sector. But the everybody is affected due to the slow
Steel Insights on the company’s
speed of such policymaking is very slow. progress in the country’s mining sector. This
focus areas in India, its current
includes Metso, Caterpillar and Terex. India
concerns as well as its outlook for
How has been the year 2012 for Sandvik accounts for around 2 percent of our global
the new year.
Mining, globally and in India? What is the turnover. The major markets are Australia,
outlook on 2013? South Africa and Canada. Russia and CIS
Excerpts:
countries are coming up and Sandvik is
In 2012, despite the economic uncertainties,
What are the focus areas for Sandvik in doing a lot of work in those countries.
Sandvik Mining globally achieved its
India? budgeted revenue targets. 2013 would be
What is the scenario in the Chinese market?
Our major strength in the Indian mineral even more challenging and if we can achieve
sector is on iron ore and underground hard 8 to 10 percent growth in topline, it will be In China, we are seeing a slowdown in both
rock. Thus, a lion’s share of our revenue is a very reasonable performance considering the segments of construction and mining
from underground hard rock and iron ore the outlook. equipment. Due to Chinese slowdown,
and the related after market. In India, the revenue performance is Australian miners supplying ore to that
In coal, we do not have any presence in approximately 20 percent below the target as country are facing problem. Also, coking
surface and load haul segments at present. the new mining projects did not come up as coal imports by the country was down in
Instead, our focus is on underground for per expectation. This is particularly true for 2012.
continuous mining in Bord and pillar coal and underground hard rock greenfield In our case, China’s share in our global
operations and development work in projects. Iron ore was also extremely weak turnover is around 7-8 percent. We have
Longwall mining. due to ban on mining in major states like a manufacturing set up in that country.
In the Indian mining sector, currently Orissa, Karanataka and Goa. Besides, Sandvik mining has manufacturing
we are not covering the entire segment. Our facilities in France, Sweden, Finland and
entire product range would come when the What is your level of presence and turnover Australia.
market opens up. As of now, imports are in India?
sourced from Finland and Sweden. We have Our mining equipment revenue from India Lastly, what was the impact of the recent
manufacturing plants in India for rock tools, is around `250 crore. Besides, Sandvik has split of Sandvik’s global mining and
but not for mining equipment as such. presence in materials technology, tubes used construction divisions?
in fertilizer, machining and tooling in India. The objective of this split was to gain
What is your reading of the current scenario For these we have five plants. Sandvik’s increased customer focus. Today,
of mining in the country? India subsidiary Sandvik Asia Ltd has its aftermarket demand from these two
There are mixed signals coming from India. headquarters in Pune and manufacturing divisions is entirely different and we are
Some people have invested heavily on units in Pune, Mehsana, Hosur, Hyderabad reaping benefits of increased focus.
M
uch in contrast with iron ore, India be around 90.2 mt and import would more (Benga Coal Project). The company mostly
is critically short of coking coal as than double, according to an estimate by the sources the fuel from its own overseas
a natural resource. The proven working group on steel. operations for its steel plants in Europe,
reserve of coking coal is only 17.9 billion However, strangely enough, there is Asia and elsewhere. This, however, remains
tons, much less than the vast proven reserves hardly any concern about the increasing a rarity in the Indian steel vertical. Except for
of non-coking coal of 99 billion tons. Of the requirement of coking coal in the country. very few players – that includes coke maker
total proven coking coal reserves, deposit of With such high growth in imports, India Gujarat NRE Coke Ltd – acquisition of
prime coking coal is only 5.3 billion tons, would possibly become the largest importer coking coal mines have not been on the radar
official data shows. of coking coal a few years on, surpassing of the Indian corporate entities.
More importantly, the quality of coking Break-up of coking and non-coking reserves (in million tons)
coal available is quite inferior, so much so
Depth Coking Non-coking High Grand
that sometimes costlier imports prove more
Range (m) Prime Medium Semi coking Superior Inferior Ungraded Sulphur Total
economical.
As of 2011-12, India’s coking coal 0-300 0.00 11566.45 466.38 21585.76 129038.81 9894.48 1290.64 173842.52
consumption was around 50 million tons 0-600 4043.42 4067.00 0.00 202.42 5899.58 0.00 0.00 14212.42
(mt), of which around 33 mt was met by
300-600 0.00 5869.61 758.14 12362.80 49294.31 15436.32 202.00 83923.18
imports, 85 percent of which came from
600-1200 1269.64 5165.48 482.61 2505.12 7144.89 4951.29 0.00 21519.03
Australia.
With the growth in steel demand to 0-1200 5313.06 26668.54 1707.13 36656.10 191377.59 30282.09 1492.64 293497.15
113.3 mt by 2016-17 from 65.61 mt in 2011- Source: Geological Survey of India (GSI)
12, coking coal demand in the country is set
Estimated requirement of raw materials and other inputs by 2016-17 Massey, Banpu, Xstrata, Yanzhou, Glencore,
Anglo, Arch, Rio, James River. The major
Estimated Estimated Additional Requirement
Input Materials Unit
Consumption 2011-12 Consumption 2016-17 by 2016-17
supplier countries are Australia, US and
Canada.
Coking Coal Million Tons 43.2 90.2 47.0 The global trade of coking coal stood
Non-coking Coal Million Tons 35.3 28.4 - at around 260-280 mt in 2012. The big
three importers – China, Japan and India –
Iron Ore Million Tons 115.0 206.2 91.2
together accounted for around 155 mt of this
Natural Gas MMSCMD 7.2 13.541 6.341 market.
Ferro Alloys in ’000 tons 2152 3673 1521
As estimated by Merlintrade &
Consultancy, total seaborne trade would
Refractories Million Tons 1.29 1.97 0.69 increase to around 415 mt by 2020, of which
Source: Working group on Steel the top three importers – India, China and
Japan – would claim a share of 271 mt or 65
Nevertheless, almost all the major Indian imports will go up from current 30 mt to 90 percent. This, however, may be a conservative
steelmakers have embarked on very aggressive mt by 2015 surpassing Chinese coking coal estimate. If India can achieve its planned
expansion plans to increase installed capacity. imports. By comparison, China’s coking coal expansion, and Japan’s consumption does not
SAIL has aimed to increase its annual hot imports may be at most 70 mt by 2015. come down dramatically, the share of these
metal production capacity from the current “I think India will become a bigger three countries may go up further.
13.8 mt to 24 mt by FY13. importer than Japan and China, the current On the supply side, Australia would
Accordingly, the company’s coking coal leaders in importing coking coal,” Pervan was continue to dominate the market with
import could increase from current 13 to 14 quoted as saying. export of 255 mt in 2020, with a share of
mt to 21 mt by the next few years. Similarly, While ANZ estimate may seem to be a 61 percent, same as in 2010. While new
the annual coal consumption of JSW, the little on the higher side, another estimate by suppliers like Mongolia, which has started
country’s largest private sector steelmaker, Merlintrade & Consultancy Ltd put India’s feeding the Chinese market, would come up
will reportedly double from current 7.4 mt to coking coal imports at 90 mt in 2020. in due course, Australia’s domination would
14 mt by next two years. hardly wane. US, on the other hand, is likely
Even if the Indian steel sector fails to Global supply scenario to see a drop in exports; this however would
achieve the targeted 10 percent production Currently, the coking coal market is not impact the Indian companies which do
growth annually, coking coal consumption overwhelmingly dominated by mining giants not receive much of the material from that
by all the major steel companies would grow including BHP, Walter Resources, Peabody, country.
immensely by 2020. SAIL has targeted to
have a capacity of 60 mt by that year. RINL, Top met coal seaborne exporters (in mt)
another public sector unit, has chalked out
Country 2008 2009 2010 2020
an expansion from current 6.3 mtpa to 20
mtpa by 2020. JSW, on its part, has planned Australia 134.3 130.0 158.8 255.0
34 mtpa production by then, from 14.3 as US 35.3 29.9 47.8 25.0
of March 2011. Most of this expansion Canada 25.4 20.1 27.0 50.0
would be undertaken through Blast Furnace/
Others 25.6 22.5 30.5 85.0*
Basic Oxygen Furnace (BOF) route, which
require coking coal as primary raw material. Total 220.6 202.5 264.1 415.0
Attempts are being made by a few companies *Including: Colombia, Russia, Indonesia, Mongolia, New Zealand and Mozambique
to adopt the Corex/Finex technology,
whereby thermal coal can be directly used Top seaborne met coal importers (in mt)
for ore reduction and melting work. But the Country 2008 2009 2010 2020
initial investment requirement is substantial Japan 66.5 52.5 62.6 71.0
and there is significant technology barrier in China 6.9 37.0 53.0 110.0
terms of patent rights.
India 26.8 26.8 37.2 90.0
As a result, such prolific expansion in
India’s steel making capacity cannot but be South Korea 21.9 15.0 18.4 38.0
achieved without a huge surge in coking coal Brazil 17.9 15.0 18.4 38.0
imports. As estimated by Mark Pervan, Head Others 81.0 51.0 66.3 75.0
of commodity research at the Australia and Total 221.0 202.0 260.7 415.0
New Zealand Banking Group (ANZ), India
Source: Merlintrade & Consultancy Ltd
may triple coking coal imports as early as
2015. He estimates that India’s coking coal
In coming years, experts say, the demand Tolgoi coal mine is a case in point. The Annual production capacity of
boom from China and India would lead to a aggressive bidding for properties coupled some players in India
demand-supply gap in global trade of coking with growing supply gap would invariably Annual production
Company
coal. This is particularly feared for premium lead to pricing pressure for this vital raw capacity (tons)
quality coking coal market, where there will material. Tirupathi Fuels Pvt ltd 110,000
be not enough resource to supply. The share United Coke Pvt Ltd
of high quality coking coal, in countries 2013 outlook Antai Balaji Coke 120,000
having significant coal deposits, is less than 1 Notwithstanding the long term expectations, Fairdeal suppliers 300,000
percent of proven reserves. The requirement the met coal market saw a softening of prices Narayani Coke 300,000
however is much above that percentage. in much of 2012. As of now, the big question
Also, there would be limited new Ennore Coke 180,000
is whether the spot prices in the international
production from countries like Mozambique, market will see a recovery in 2013. The Saurashtra Fuels 700,000
Indonesia and Mongolia, at least until 2015- analysts generally believe the prices would Krishna Coke
16. US may have already reached the stage of not show any major turnaround this year. Visa Steel 400,000
decline and is expected to see steady fall in Credit Suisse and Dahlman Rose & Co Bengal Energy Limited 600,000
exports, going forward. Canada may emerge see average prices remaining lower in the Carbonedge Industries 90,000
as a bigger player, but Australia’s shipping range of $171-180 per ton FOB Australia
Global Coke Pvt Ltd 600,000
constraints would pose a threat. when compared to 2012’s average of $191
A major factor leading to tightened supply OSD Coke Pvt Ltd
per ton FOB.
scenario could be the fast depletion of China’s While marginal improvements are Sathavahana Ispat Pvt Ltd 400,000
own reserves. Coking coal reserves comprise expected in terms of steel demand in 2013, BLA Industries
about 20 percent of the country’s total coal significant gains are thought to be unlikely. Uttam Galva 432,000
reserves, but in terms of production, its share Credit Suisse, for example, sees the met coal Maa Shakti Coke 1,100,000
is higher than that. According to industry market as “structurally well supplied”. It has Bhatia Coke & Energy Ltd 300,000
reports, the thick coal seams in Shanxi coal estimated that 2013 will see an excess of 10
mine is already showing significant thinning. Balaji Coke Industry Pvt Ltd 120,000
mt of met coal, so any gains should be “fairly
If the country decides to conserve its own Austral Coke & Projects
muted”.
resources for future, there would be massive Other banks appear to agree, though Gujarat NRE Coke pvt Ltd 1,434,000
pressure on the global market. This could differing in the magnitude of the over-supply, Shree Coke Pvt Ltd 110,000
be a likely scenario; given that the country’s which Morgan Stanley puts at 4 mt. Only Source: Insights Research
coking coal import has increased eight-fold Goldman Sachs sees a possible shortage of
in a gap of two years (2008-10). met coal, anticipating a net deficit of 1 mt
In the long run, the tightening of supply coal imports to make manufacture. Being
this year.
would intensify competition among the well aware of this weakness during contract
mining companies for tapping new sources. India Inc. looks elsewhere negotiations, Indian mills have embarked on
The recent fierce competition among mining an active hunt to diversify their coal supplies,
With insignificant coking coal reserves,
giants for long term rights of Mongolia’s and of late Mozambique has been the centre
India is substantially dependent on met
of their attention. Large mills such as JSPL,
JSW Ispat and Tata Steel are amongst the
Integrated steel plants with captive coke making plant (in mt)
big steel players to have secured supplies.
0.60 However logistical issues continue to
1.20 3.00
1.30 hamper Mozambique from becoming big
in the spot market, with supply estimates
2.50 2.60 recently downrated by some.
While India has Mozambique, China
has Mongolia, which since mid-2010 has
overtaken Australia as the top supplier of
2.50 met coal to China, contributing slightly more
than a third of Chinese imports (Australia
now supplies under 25%).
Some projects are also currently in the
pipeline to push landlocked Mongolian
Tata Steel Bhilai Bokaro RINL Durgapur Rourkela IISCO HCC to the seaborne market, with the
Source: Insights Research potential to give Australian miners a run
currently facing huge challenge to meet its was the world's largest coke exporter in the
Major buyers in India coke requirements. Although most of the seaborne market (at 15 mtpa). While many
The major buyers in the Indian market integrated steel plants are already in the market participants feel that exports are
include the following players: process of increasing their coke making unlikely to revive to that level, a modest 6-8
capacities, the deficit of metallurgical coke in mt of coke is expected to be exported out of
1. Tata Steel
India is expected to increase from current 12 China this year.
2. Steel Authority of India Ltd (SAIL) mt to 25 mt by 2015. Applying a widely accepted coal-coke
3. Jindal Steel & Power Ltd (JSPL) Besides low production, the logistics conversion factor of 1.3, this potentially puts
4. Adhunik Limited sector poses a major challenge. There is an increase of approximately 7.8-10.4 mt on
5. Concast Limited urgent need to increase the number of ports to Chinese coking coal demand.
on the coast line and dredge the river ports However, this increase is unlikely to
6. Other secondary steel manufacturers
to reduce cargo movements through rail and jolt seaborne prices as much of it would be
road. sourced from Mongolia, which is closer to
for their money. However, all is not rosy in The internal logistics cost in India is very many Chinese coke ovens located in the
Mongolia, with unattractive regulatory and high. The local freight for 100 km is equal to inland provinces of Shanxi and Hebei.
fiscal developments proving something of a 5,000 mile sea freight in eastern India where Another possible spill-over effect of
disincentive. major steel projects are on. Also, pilferages China's new ruling on coke exports could
Other suppliers, such as the USA, have (to an extent of at least 1 percent) need to be a possible displacement of some coking
continued to play an active role in the seaborne be controlled. There is need to enhance the coal supplies elsewhere if importers decide
met coal market from time to time, but the berthing facilities and regulate the intra-port to decrease their captive coke making
country has always been a swing-supplier to transportation of imported cargo. Allocation operations and import Chinese met coke
Asian-Pacific markets, since its home ground of more rail rakes for the speedy movement instead. Nevertheless, whether this trend
still remains the Atlantic region. of coal is yet another pressing need. will actually catch up with the Indian
However, as demand conditions in Over and above all these, the delay in market is still a matter of guess, industry
Europe faltered in 2012 due to the continuing getting environmental clearances poses a sources said.
economic malaise, US suppliers actively
major hurdle in implementing new and
pursued Asian customers, particularly when
expansion projects.
they saw opportunities to be price competitive
with Australian suppliers.
China’s coke
card
Current trend in Indian coke market
While the Indian
Along with coking coal, India also suffers
industry struggles to
from inadequate domestic production of met
meet its growing met
coke. Currently, the demand deficit in local
market is around 13 mtpa. With the expected coke requirement,
increase in demand (to the tune of 15~16 a new development
mtpa in next 4-5 years), the deficit is likely in neighbouring
to increase to 28 mtpa. Import of coke into China has come to
India stood around 2.1 mt in 2011-12. The take the market by
slow steel market is keeping the LAM coke surprise. Recently,
market slow too at present. China has allowed
full liberalisation
Coke plants across India & for its metallurgical
capacities coke export sector – a
development which
Currently, coke plants in India have an
may have varied
installed capacity close to 30 mt. The
implications for the
integrated steel mills have their coke making
domestic coking coal
capacities around 19 mt. The secondary steel
consumption.
producers have captive installed capacity of
4 mt. Merchant coke plants have installed Prior to 2008,
capacity of 7.2 mt. when a 40 percent
export duty was
Challenges in meeting coke demand slapped on met
coke exports, China
The Indian steel industry is currently is
M
uch to the dismay of the Indian The growth trend has been a little better 2013, around 1,700 projects are scheduled
steelmakers, the steel consuming for the construction sector, where industrial to get commissioned in various industries
sectors in the country have and infrastructural projects worth `1.8 such as steel, gas transportation, power
continued with sluggish growth in recent trillion have already been commissioned generation and distribution. It is expected
months. This was in line with the slow during April-November, 2012-13, according that construction activity will be in full
growth of the economy which is expected to
post modest growth numbers in the current Automobile sector growth
fiscal.
The slow growth was particularly
evident in the automobile sector. According
to data available, there was a steep decline in
commercial vehicle sales during December
and a slight decline in passenger vehicle
sales during the period. Trade sources
attributed the lack of improvement in trade
to the slow economic growth in the country,
which has a direct bearing on commercial
vehicle sales.
Also, the high interest rate continued
to plague the passenger vehicles market.
The sector growth was expected to remain
under pressure in January 2013 but a slight
improvement is likely by the end of February
2013 on the back of repo rate revision by Source: SIAM
Indian iron ore imports set to the resolution after hearing complaints of
several merchant miners of Odisha.
“The latest move will increase iron
T
he severe shortage in iron ore While the Supreme Court has allowed
consumption only.
supplies from Karnataka and Goa, Category “A” mines in Karnataka to resume
After this resolution, several merchant
where mining was stopped following mining, only four mines have done so in
miners have been affected in the absence of
a Supreme Court directive, and the cap the last few days. So far, these mines have
their own plants. Against this resolution, the
on production in Odisha have led to India produced about 1 mt of ore, which has been
miners had knocked the door of the revision
becoming a net importer of iron ore this put up for auction.
authority.
financial year. Till 2011, India was the third State-owned National Mineral
With the staying of the circular, miners
largest exporter of iron ore. Development Corp (NMDC), which has
with forest and other clearances can start
According to industry sources, between been allowed to produce 1 mt a month
their operations immediately, while those
April and December 2012, India imported an from its Karnataka mines, is able to produce
without forest clearance have to wait for
estimated 6 to 7 million tons (mt) of iron ore. only about 700,000 tons due to logistical
some more time, industry sources said.
Some steel mills such as JSW Ispat, Bhushan bottlenecks.
In Goa, resumption of mining depends
Steel and Essar Steel have been importing FIMI estimates production in Karnataka
on a directive from the Supreme Court.
ore for their port-based steel plants. JSW during 2013-14 at about 15 mt, assuming
Once the mining ban was lifted, production
Ispat has also used imported iron ore for its more mines in Category A and B resume
was likely to be capped at 25 mt, analysts and
plant in Salem and is considering importing mining. The estimated production would
industry sources said.
the commodity for its plant in Bellary, too. include about eight mt from NMDC.
An export duty of 30 percent, coupled All steel mills operating in India might
Export duty
with the Railways’ high freight rates on have to either import iron ore or shut
iron ore exports, also led to the sharp fall in operations, according to analysts. The At a time when the steel industry is reeling
exports. Odisha government has capped iron ore under a severe shortage of iron ore, following
According to the Federation of Indian production at 52 mt. For miners whose the suspension of mining in Goa and
Mineral Industries (FIMI), India’s iron ore leases are pending for renewal, capacity has Karnataka and the imposition of a cap on
exports fell 62.3 percent to 15.05 mt in the been restricted to meeting only their captive mining in Odisha, miners are seeking a drastic
April-November period, against 39.95 mt requirements. cut in the export duty on the commodity.
in the corresponding period of the previous However, there was some respite after The mining industry, represented by the
year. Since November, no iron ore exports the Union Mines Ministry’s revision FIMI, is also seeking the railways charge
from India were recorded. authority stayed the enforcement of Odisha uniform freight rates on iron ore.
The steel industry expects the availability government directive that barred merchant In FY10, the ministry of finance had
of iron ore to fall further in the next financial miners to raise minerals during their deemed imposed five percent duty on the export of
T
he Indian steel industry will greatly the consumption of iron ore used. Although these coals are used for steel
benefit if the Union Budget 2013 takes Steel and power sectors are the major making, they cannot meet the parameters
proactive steps to solve the lingering consumers of coal. In order to fulfill the huge of coking coal as defined at S No. 122 of
issues of iron ore shortage and continued requirement of these sectors, Government custom notification 12/2012. Coals not
delay in project approvals, H.M. Nerurkar, allows both them to import coal at meeting the parameters in test but being
managing director at Tata Steel, said. concessional rate of import duty. Coal used in used for metallurgical purposes in COREX
“The Indian steel industry is facing the power sector is defined as steam coal and / PCI / FINEX, are being charged to duty as
problems due to shortage of iron ore and attracts 1 percent import duty, whereas coal “other coals” at the rate of 5 percent. This has
continued delay in project approvals. The used in steelmaking is defined as coking coal defeated the well intentioned objective of the
industry will benefit from proactive actions and attracts zero rate of import duty. government to provide relief to steel industry.
on these fronts in the Union Budget,” Coal for utilisation in the steel industry is Therefore, Assocham has suggested
Nerurkar said in an e-mailed statement. defined at S No. 122 of Custom notification that tariff description for “coking coal”
“The first six months of the current fiscal 12/2012 as “coking coal - means coal having (coal having mean reflectance of more
have seen a 40 percent jump in steel imports. mean reflectance of more than 0.60 and than 0.60 and Swelling Index or Crucible
In order to protect interests of the domestic swelling Index or Crucible Swelling Number Swelling Number of 1 and above)* should be
industry, the Budget needs to revisit last year’s of 1 and above”. substituted by the description ‘metallurgical
hike in excise duty and take steps to discourage However, “we would like to mention coal’, or “coals for use in iron & steel making
dumping of products in India,” he said. that the above mentioned parameters are too using any technology such as Blast Furnace,
In line with the government’s policy of technical and sensitive. It would be worth COREX, PCI or FINEX”.
reducing import duty for raw materials for to mention over here that the departmental The chamber further notes that the test of
making steel, import duty on steel grade labs are not equipped to test these parameters mean maximum reflectance (MMR) is very
limestone, dolomite (which is presently 5 creating delays and giving rise to litigation sensitive and there is no facility for testing
percent) and iron ore (which is currently which ministry itself wants to avoid. Therefore MMR in Customs Lab at any of the ports.
2.5 percent) should also be reduced to zero, we need to simplify the definition of coking Therefore, the testing of the country’s 23.87
Nerurkar said. coal based on end use application like in the million tons (2011-12 to December 2012 as
Given the priority accorded to case of steam coal,” the chamber said. per Ministry of Commerce figures) imports
infrastructure in the Twelfth Plan (2012- of coking coal is to be done at the only centre
17), and the expectation that the private of CIMFR, CISR, Dhanbad (Jharkhand)
sector would contribute half the envisaged which itself is a huge task; voluminous and
investment of `50 lakh crore, the Budget defeating in purpose. Add to this, the cost of
should also look at introducing special testing each sample is approximately `33,450.
incentives to encourage capital goods The process of drawal of sample, its
industries, he added. dispatch, testing and receipt of reports is
too tardy and time consuming and pending
Assocham proposal the test reports, consignments are assessed
In light of the huge scarcity of coking coal, provisionally and test bonds are to be executed
Assocham has mooted a proposal to amend in each case. Moreover, the crucible swelling
the definition of ‘coking coal’ with a view to number (CSN) is the other parameter to
promote and encourage the steel industry to satisfy the condition of coking coal. A coal
shift to new and advanced technologies. having CSN 1 as per load port certificates,
In a proposal submitted to the ministries certified by international assayers, is tested
of coal and steel, the chamber said below 1 by various Customs lab due to
traditionally, steel is made through blast varying testing practices/ methods. This
furnaces by utilising coke made out of coking gives rise to litigations defeating the well-
coal. Coking coal is converted into coke in meaning intentions of the government.
A
fter a negative growth in November April-December 2012 and Goods Carriers
2012, the Indian automakers posted registered de-growth at (-10.29) percent
marginal growth in the month of during this period.
its $1 trillion infrastructure investment plan
December 2012. The cumulative production Two Wheelers registered a growth of
in a timely manner. However, the demand
data for April-December 2012 shows only 4.09 percent during April-December
for flat steel from automobile, white goods
production growth of only 2.16 percent over 2012. Scooters, mopeds and motorcycles
and capital goods sectors is likely to remain
the same period last year. grew by 18.44 percent, 1.80 percent and 0.77
modest during the year, it said.
According to the Society of Indian percent respectively over same period last
Though Indian steel producers increased
Automobile Manufacturers (SIAM), the year. However, in December 2012 Scooters
prices by `500-1,000 per ton in December
industry produced 1,697,625 vehicles and Motorcycles grew by 6.40 percent and
2012, India Ratings expects profit margins
in December 2012 against 1,677,588 in 4.83 percent respectively, while mopeds
in 2013 to remain broadly similar to 2012
December 2011, with marginal growth at declined by (-6.88) percent over the same
levels. This is due to the persistent high
1.19 percent. period last year.
cost of steel production and steel producers’
limited ability to pass on higher costs due to
Sales Exports
subdued demand from end-user industries.
The overall growth in domestic sales during During April-December 2012, overall The margin pressure will be higher on the
April-December 2012 was 4.57 percent automobile exports registered de-growth producers with no captive raw material
over the same period last year. However, of (-2.92) percent compared to the same linkages.
in December 2012, overall sales grew only period last year. Passenger Vehicles grew by The cost of funding working-capital
marginally by 2.77 percent over December 10.52 percent, while the other segments like requirements remained high despite the
2011. Commercial Vehicles, Three Wheelers and marginal reduction in repo rate by the Reserve
Passenger Vehicles segment grew at Two Wheelers fell by -4.76 percent, -20.88 Bank of India in early 2012. India Ratings
8.37 percent during April-December 2012 percent and -2.79 percent respectively. In expects a gradual reduction in interest rates
over same period last year. Passenger Cars December 2012 Passenger Vehicles, Two in 2013 which should provide some relief
declined by -0.33 percent, Utility Vehicles & Three wheelers segment grew by 31.59 in interest costs. While higher-rated issuers
grew by 59.10 percent and Vans grew by percent 9.36 percent and 4.63 percent invariably have access to bank funding and
3.71 percent during April-December 2012 respectively, while Commercial Vehicles capital markets in certain cases, most issuers
as compared to the same period last year. declined by -25.79 percent. in the ‘IND A’ and below categories rely
However, in December 2012 passenger car largely on bank financing and are severely
Impact on steel sector affected by high interest costs.
sales fell by (-12.51) percent over December
2011. Total passenger vehicles sales also Meanwhile, India Ratings, a Fitch group Considering the modest demand
declined by (-1.13) percent in December company, has forecasted that the Indian scenario, a further rupee depreciation
2012 over same month last year, as per SIAM automobile industry would remain modest could pressurise the margins of companies
figures. during 2013. The industry’s growth is producing flat steel through blast furnace
The overall Commercial Vehicles expected to be largely driven by the economic route as bulk of coking coal is imported. This
segment registered marginal growth of 0.74 scenario in the country which at this point, is despite import price parity of flat steel
percent in April-December 2012 as compared looks gloomy. In turn, the lukewarm growth products. Moreover, a weaker rupee raises
to the same period last year. While Medium in automobiles would affect the steel the financial leverage of steel producers
& Heavy Commercial Vehicles (M&HCVs) industry’s growth in the country. with significant un-hedged foreign-currency
registered decline at (-19.13) percent, Light World Steel Association (WCA) has liabilities resulting in a decrease in financial
Commercial Vehicles grew at 15.61 percent. forecasted steel consumption in India to flexibility. However, the agency expects
In December 2012, M&HCVs sales declined grow at 5 percent in 2013. Steel producers financial leverage of rated entities to remain
by (-38.34) percent over December 2011. may see a spurt in demand in the medium- within the guidelines stipulated for the
Three Wheelers sales grew by 4.96 term if the Indian government implements respective rating category.
production growth
No. Nov ’11 Nov ’12 Growth
1 India 48.85 51.47 5.36
2 Turkey 23.06 24.00 4.07
3 China 461.44 476.93 3.36
Steel Insights Bureau “I take pride in announcing that the 4 Russia 45.36 46.68 2.89
growth rate achieved by India is five times 5 USA 57.66 58.23 0.98
D
espite the weak sentiment prevailing the world average growth rate of steel. 6 Japan 71.49 72.09 0.84
in the domestic steel sector, India I congratulate the industry stakeholders 7 South Korea 45.94 46.19 0.53
has emerged as the top ranker in on achieving this feat and sustaining this
8 Brazil 24.06 23.35 -2.94
terms of production growth in the world remarkable growth,” the steel minister said.
“Today, India is the fourth largest steel 9 Germany 29.87 28.73 -3.83
during April-November, 2012. Announcing
this, steel minister Beni Prasad Verma has producer in the world. It is my dream to see 10 Ukraine 23.73 21.99 -7.35
applauded the Indian steel industry for being India become the second largest in the world. Source: Steel Ministry
the number one in terms of growth rate in All the main and major public and private
steel production amongst the top ten steel sector steel plants must gear up to achieve Secondary producers, comprising largely
producing countries. this goal in the coming years,” Verma said. induction furnace units, had produced
During April-November 2012, the around 33.15 mt of steel in the April-
The country’s total steelmaking capacity December period of 2012-13 out of the total
Indian steel industry achieved a growth rate
stood at 92 million tons (mt) till September finished steel production of 56.56 mt during
of 5.36 percent which was the highest in the
world, government said in a statement. 2012, a marginal rise from the last recorded the period, initial provisional steel ministry
During the period China stood third capacity of 89 mt as on March 2012, a steel data showed.
with a growth rate of 3.36 percent. The ministry official told Steel Insights. Much
world’s average growth rate of steel was just of the increased 3-mt capacity was in the Steel delegation to Singapore
0.97 percent during this period. induction furnace segment, the official said. Meanwhile, representatives from Indian
steel mills and steel ministry were on a Singapore’s leading bankers, FIIs, mutual SAIL chairman C.S. Verma had earlier
three-day visit to Singapore in January 2013 funds and private equity firms, the sources said India needs to put in place a funding
to seek investments from fund houses like said. agency only for the steel sector, on the lines
GICS and Temasek among others to ensure Meetings with people based in Singapore of Power Finance Corporation.
finance for their expansion plans, industry dealing in coal for the steel sector was also The working group on steel industry for
sources said. fixed up. the Twelfth Plan, which pegged `2.5 lakh
The delegation was led by Union Steel India’s steel capacity is projected to crore investment in the sector up to 2017
Secretary D.R.S. Chaudhary and comprised grow to 200 mtpa by 2020, calling for an for adding 60 mtpa capacity, had also raised
representatives of both public and private investment of $110 billion in the next six- concerns about the means of funding in the
sector firms. They met officials from seven years. sector.
Steel production
9M FY’12 Growth
to grow in 2013-14
Crude Steel 64.08 53.62 20%
Rolled
46.32 38.72 20%
Products: Flat
Rolled
13.63 10.57 29%
Products: Long
Projects on schedule
JSW Steel’s New Cold Rolling Mill
(CRM-2) Phase 1 and Phase 2 projects at
Vijayanagar are progressing satisfactorily
and will be completed during 2014-15, the
company said in a release.
Non-Grain Oriented Electrical Steel
project has been taken up for implementation
and is expected to be completed in FY2015,
the release said.
Expansion and debottlenecking of
coated products facility in Maharashtra from
current capacity of 0.925 mt to 1.2 mt will
Steel Insights Bureau from Asia, North America and Russia, while be completed in first quarter of next financial
contraction was reported in Europe, the year, it added.
T
he Indian economy has bottomed company said.
out and is expected to turn around in “Global steel demand is expected to grow Iron ore availability
2013-14 to stimulate steel demand by 3.2 percent in 2013, with raw material
JSW Steel expects availability of iron ore in
growth, while imports, mainly from FTA prices to be less volatile,” it added. the next financial year will be in the range
countries, remain a concern, JSW said in a of 19 to 21 mt while the steel industry in
statement. Crude steel production Karnataka requires 30 mt.
“Pragmatic policies on iron ore mining, JSW Steel Limited reported a 8 percent growth “However, the company is exploring the
speeding up of infrastructure projects and in crude steel production in the third quarter possibility of using dumps with very low
expected interest rate cut by RBI will boost of 2012-13 compared to that of corresponding quality,” JSW said in a statement.
demand for steel,” the company said. period of last fiscal
Global economy is expected to grow by year.
3.5 percent in 2013. The world crude steel The capacity
production for 2012 was 1,548 million tons utilisation was
(mt), a growth of 1.2 percent coming mainly lower during the
Crude steel production third quarter
(in lakh tons) of 2012-13 as
compared to
Product Q3 FY’13 Q3 FY’12 Growth
second quarter
Crude Steel 20.94 19.39 8% of 2012-13 due
to inadequate
Rolled Products:
Flat
15.69 13.87 13% and poor quality
of iron ore
Rolled Products: available through
4.83 3.7 31%
Long
e-auction.
Mining impasse hits Sesa (CEC), and is in the process of resuming “B”
Category mines including the Sesa Goa mine
in Karnataka.
Value addition
Production of pig iron and met coke
increased by 29 percent and 40 percent in Q3
to 82,869 tons and 90,664 tons respectively
as compared to 64,163 tons and 64,671 tons
in the corresponding quarter of the previous
year. The increase is primarily on account of
the commissioning of new pig iron capacity
during Q2 FY2013 (increase of 375 ktpa
taking total capacity to 625 ktpa) and the
associated metallurgical coke capacity. The
new blast furnace operated partially during
the current quarter on account of reduced
availability of iron ore.
Sales of pig iron were lower by 8 percent
in Q3 to 62,258 tons as compared to 68,020
tons during the corresponding quarter of the
previous year due to unfavourable market
Steel Insights Bureau iron ore was sold from Karnataka through conditions while the sales of met coke
court monitored e-auctions. There was no increased by 15 percent in Q3 to 79,542
I
ron ore miner Sesa Goa Ltd has reported production or sale of iron ore during the tons as compared to 68,931 tons in the
a 28 percent year-on-year decline in net quarter at the Goa operations, the company corresponding quarter of the previous year.
profit to `497 crore in the third quarter said in a statement. During Q3 and the nine-month (April-
of 2012-13 compared with `692 crore in the Government authorities have ordered December 2012) period, power sales stood
same period of the previous financial year suspension of mining operations of all at 42 million units and 116 million units
due to decline in sale on ongoing mining ban mining leases in the state of Goa, stoppage respectively.
in Goa and Karnataka. of mining transport across the state and Power sales are not comparable with
The Vedanta Group company’s sales suspension of environmental clearances in the previous periods in view of GEPL
also plunged 91 percent to `227.54 crore September 2012. acquisition in March 2012, and the recent
from `2617 crore in the same period of the In October 2012, the Supreme Court commissioning of the new 30 MW power
previous fiscal as there was no production ordered suspension of all mining operations plant.
and sale of iron ore during the quarter. and transportation of iron ore of the mines During the quarter, Sesa Goa acquired
If not for the `669 crore profit coming in the state. the remaining 49 percent of the outstanding
in from Cairn Indian, in which the company As a result, operations at the company’s common shares of Western Cluster
holds 20 percent stake, it would have reported mines in Goa remain suspended. The Limited (thereby taking the equity interest
a loss of `172,25 crore, said the company. company has filed an application before the in the project to 100 percent) for a cash
Supreme Court seeking modification or consideration of $33.5 million.
Operating performance vacation of the aforesaid order. The hearing Over 48,000 meters of drilling has been
Iron ore mining operations in both Karnataka in the Court is yet to commence effectively. completed till December 31, 2012 in the
and Goa continue to remain suspended In Karnataka, the Supreme Court allowed three deposits. The company remains on
due to regulatory restrictions. During Q3, “A” Category mines to resume mining track to deliver the first shipment in FY2014,
approximately 0.03 million tons (mt) of operations, in line with recommendations it added.
Gujarat NRE reports higher at a time when met coke prices remained
highly depressed and the demand from steel
makers was extremely low,” the sources said.
G
ujarat NRE Coke Ltd, one of the at `527.11 crore, at `331.83 crore during the
largest merchant coke manufacturers second quarter and at `335.57 crore during
in India, has managed to report the third quarter of 2011-12. Electrosteel Castings Ltd has reported a
a substantial increase in its third quarter “The increased profit and income from net profit of `33.09 crore in the quarter to
(October-December) net profit and income operations announced by the company for December 31, 2012 against a net loss of
from operations despite sharp fall in revenues the third quarter of 2012-13 came at a time `10.78 crore in the comparable quarter in the
from its steel business. when the price of met coke had fallen by previous fiscal. In the quarter to September
“The increased income and profit is a bit nearly 10% during the quarter from a high of 30, 2012, the ductile iron pipe maker had
surprising because metallurgical coke prices around $320 per ton as on October 1, 2012 to posted a net profit of `37.04 crore.
had fallen significantly since October 2011 a low of around $288 per ton as on December Industry sources said the margins were
from a peak of $410 per ton to recent lows 31, 2012,” they said. still under pressure but selective order
of around $287 per ton in December 2012,” The price of met coke was ruling at about bookings have maintained the revenue levels.
industry sources said. $368 per ton as on July 1, 2012 and were at Current order booking was worth six
The company had last week reported their peak of about $410 per ton as on October months’ production. Around 60 percent of
a net profit of `20.12 crore for the third 1, 2011 and at $363 per ton as on December the company’s revenues come from exports,
quarter of 2012-13 compared with a profit of 31, 2011, according to data available with mainly to Europe and the Gulf region.
`16.72 crore during the second quarter (July- ICMW, a high end report on coal. Electrosteel has presence in UK, France,
September) and a profit of only `1.90 crore “The announcement of increased profit Spain, Italy, Germany, Jebel Ali, Qatar,
during the third quarter of 2011-12. by Gujarat NRE Coke on the back of high Morocco and South Africa.
T
he Steel Authority of India Limited its best ever production of 117,300 tons of No. 2 on November 29, 2012, the company
(SAIL) has recorded 2 percent growth high tensile plates for home sales as against said in a statement.
in hot metal production during previous best of 107,300 tons in April to The erection of dome on Stove No. 1
the first nine-months (April-December) December 2008, best ever loading of 109,200 was done on October 7, 2012. The domes of
of 2012-13 compared with corresponding tons of long rails as against previous best of stoves in BF#8 area have a unique mushroom
period of 2011-12. The growth in crude steel 99,400 tons in April to December 2011 and design to take care of thermal stresses as a
production and saleable steel production best ever labour productivity of 331.4 tons/ result of higher dome temperature. A state-
was 1 percent and 2 percent respectively, the man/year as against previous best of 322.6 of-the-art technology being introduced for
company said in a release. in April to December 2010. In production the first time in BSP, the Mushroom design
The production of hot metal during the of wire rods and light structural, the plant of dome helps in achieving longer campaign
first nine-month stood at 10.7 million tons recorded growth of 10.5 percent and 54 life of stoves, the statement added.
(mt) and that of crude steel at 10.09 mt while percent, respectively. The dome, weighing about 100 tons, was
production of saleable steel stood at 9.25 mt. assembled outside and placed in position as a
The company’s saleable steel production Hajigak project single piece on top of the stove at a height of
till November was 8.2 mt, which means its The Indian consortium led by SAIL which 39 meters. With placement of the dome, the
production of saleable steel stood at 1.05 mt had successfully bid for Afghanistan’s total height of stove increased to 45 meters.
in December. Hajigak iron ore concession, is at the final The erection activity executed by L&T was
On techno-economic parameters, the stage of signing agreement for the project, done under the supervision of Blast Furnace
company managed to improve its energy Afghan mines minister Wahidullah Shahrani Zone of the Plant’s Project Department.
consumption and blast furnace productivity said.
Speaking recently at the sidelines of the Centre of Excellence
by 3 percent each, while power generation
during the nine-month period increased by 5 11th International Mining & Machinery Besides focusing on production and
percent compared to previous financial year. Exhibition (IMME) in Kolkata, the minister upgradation process, this leading steelmaker
The release said that during the first said that the SAIL-led consortium, AFISCO has also inaugurated a new Centre of
nine-months of 2012-13, Bhilai Steel Plant (Afghan Iron and Steel Consortium) is Excellence at Steel Authority of India
(BSP) of the company supplied special soft expected to sort out soon the issues raised Limited’s (SAIL) Bhilai Steel Plant (BSP).
iron magnetic plates for the prestigious over some conditions put in the agreement. This new Centre of Excellence was
India-based Neutrino Observatory (INO) As per the agreement, the consortium has inaugurated at BSP’s Research & Control
project of Bhabha Atomic Research Centre to start mining within six months of being Lab building by C.S Verma, chairman of
(BARC), while Bokaro and Salem plants granted the licence or face cancellation of SAIL in presence of functional directors of
started production of IS 2062 E450 and E350 licence. There is also a condition restricting SAIL and CEOs of different SAIL plants
HR Coils tailor-made for Indian Railways. ore exports from the project. who had converged in Bhilai for the 55th
In fact, SAIL’s Bhilai Steel Plant (BSP) “These things have been raised during Joint Meeting of Production and Productivity
has registered growth of 4.1 percent, 5.3 the negotiations and negotiations are moving Committee of SAIL. The programme was
percent and 5.3 percent in hot metal, on. I don’t see any major difficulty in moving also attended by senior officers of BSP on
crude steel and saleable steel production, forward,” the minister said. January 21, 2013, the statement said.
respectively over the corresponding period in He further said that in 10-12 years, the The setting up of the new complex is part
last fiscal year. investment in the project would be around of SAIL’s research & development master
The plant produced 3.98 million tons $10-15 billion, which would be one of the plan that envisages creation of Centres
(mt) of hot metal, 3.83 mt of crude steel biggest single project investments by India of Excellence (COEs) at the individual
and 3.32 mt of saleable steel during the abroad. steel plant level which would primarily
nine-month period. The plant’s iron ore Meanwhile, another Indian consortium focus on various product development and
production was 4.1 percent higher than the including Hindustan Copper and Nalco has improvements in collaboration with key
same period last year, it said in a statement. shown interest for Shaida copper deposit customers and technology suppliers.
T
ata Steel Ltd has ramped up its mt in Q3 FY2005. The Merchant Mill also new and special features to make it more
production in the third quarter of achieved its best ever quarterly production at attractive and user friendly. And to make
2012-13, to reach an annualised run 0.104 mt against its previous best of 0.103 mt it more accessible, we have also launched
rate of 8.35 million tons (mt) of crude steel in Q2 FY2013. a mobile app ‘Values in Action’. We
production, the company said in a statement. The company also achieved its best ever look forward to seeing exchange of new
The company reported crude steel flat product sales at 1.087 mt in a quarter ideas and thoughts on the platform, and
production of 2.09 mt in the third quarter against the previous best of 1.008 mt in Q2 utilising it as a tool to bring about youth
of 2012-13, up 8.29 percent from crude steel of FY2013. During the period, Tata Steel awakening.”
production of 1.93 mt in the second quarter commissioning of Lime Kiln # 8 & 9 and A debate section and a ‘Talk the Talk’
of the current fiscal. Saleable steel production coke battery # 10 in December 2012. section have also been included. These
was 2.07 mt in the third quarter of 2012-13, are held periodically on Google hangouts
Production and sales and often feature celebrities, industry
up 10.7 percent over saleable steel production (In ‘000 tons)
of 1.87 mt in the second quarter of the experts and motivational personalities,
Quarterly YTD the company said.
current fiscal.
Sales during the third quarter of 2012-13 Items Apr – Apr
Q3 Q2 Q3
Dec - Dec
stood at 1.89 mt, up 9.25 percent over current FY’12 FY’13 FY’13 company is expected to report a consolidated
FY’12 FY’13
fiscal’s second quarter sales of 1.73 mt. net profit of `683 crore, while the net sales
In the April-December period of 2012- Hot Metal 1902 2070 2276 5791 6400
would be around `38,228 crore.
13, crude steel production rose 10 percent Crude Analysts expect the muted growth
1766 1927 2087 5302 5832
to 5.83 mt from 5.30 mt in the same period Steel
because of low demand and prices in most
last year. Saleable steel production rose 9.36 Saleable
1732 1869 2069 5192 5678 part of the third quarter even as prices of
percent to 5.68 mt in the April-December Steel
raw materials like coking coal and iron ore
period of 2012-13 from 5.19 mt in the same Sales 1622 1730 1887 4864 5203 remained stable.
period last year. Sales during the April- Going forward in the fourth quarter of
December period of 2012-13 stood at 5.20 Q3 results 2012-13, however, steel firms may see some
mt, up 7 percent from 4.86 mt in the same Tata Steel Ltd’s board of directors will meet pick up in consumption as prices firmed
period last year. on February 13, 2013, to consider and take up from December onwards. However, the
The major highlights during the on record the audited standalone financial spot iron ore prices are expected to rise in
third quarter of 2012-13 included LD#1 results and unaudited consolidated financial the fourth quarter even as the coking coal
achievement of its best ever quarterly results for the quarter and nine months contract for the fourth quarter settled at $165
production at 0.828 mt (previous best 0.819 ended December 31, 2012. per ton compared to $170 per ton in the third
mt in Q2 FY2013). The Wire Rod Mill According to analyst estimates, the quarter.
Boiler-6 of CPP
furnace at Sinter Plant No. 3 gas based captive power plant (CPP). With
an estimated expenditure of `339 crore, the
lighting up the boiler is a major milestone
in the enhancement of captive power
generation, the company said in a release.
RINL chairman and managing director
A.P. Choudhary said, “The commissioning of
Boiler-6 will help in meeting the requirement
of expansion significantly as the company
is putting all efforts to increase its power
generation to meet its requirements and also
to reduce its dependence on the state grid.”
The boiler, which will generate steam of
330 tons per hour, can operate either with
100% coal or with blast furnace gas and coal in
the ratio of 50:50 for generating steam at rated
capacity. On January 3, RINL had announced
commencement of structural erection work,
equipment erection of boiler and other civil
AP Choudhary, CMD unveiling the plaque to mark the inauguration of Sinter Plant 3. works at the CPP as part of increasing its
steel-making capacity to 6.3 mtpa.
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T
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Mills elevated temperature.
Exit Vertical Looper of a Colour galvanised and process has been developed to meet the
Coating Line painted coils at highest demands for top quality products
Marcegaglia’s and for healthier and safer operations thus
Ravenna Plant in supporting the industry’s effort to produce
Italy. quality steel at competitive costs.
This 350,000
tpa (150,000 tpa Outlook
painted coils) DWU today is the most innovative supplier
line will process for flat product equipment in the global steel
strips up to industry by converting all their innovations
1550mm width into action. This innovaction (innovation +
in the thickness action) has been further strengthened due
range of 0.4 to to smooth implementation of all projects
1.4mm. The with the in-house automation and process
Coating section of a DWU CCL major advantages control systems. Danieli also has state-of-
of such combined the-art manufacturing workshops in Italy,
quality. They continuously coat hot rolled, line are the low investment costs, high Austria, Thailand and China. This in-house
cold rolled and galvanised steel strips with a production flexibility (producing either only manufacturing facilities and automation
variety of coatings in an almost endless array alvanized, or alvanized and color coated), low competence make Danieli capable of
of colors, patterns, and textures, and can be operating costs (less coil handling, packaging, managing the full supply including
supplied as stand-alone lines or combined degreasing, manpower needs), installation
with in-line galvanising process. The cost reduction, and lower environmental
coatings are precisely applied through roll impact.
coating machines on both sides of the strip
that can be coated simultaneously with either Electrolytic Tinning Lines (ETL)
the same or different type of coating. DWU tinning technology is characterised
The typical configuration with separate by either tinning or chromium plating or a
coaters with quick color change feature combination of both. Tin plate is mainly used
and two ovens allows maximum flexibility in the packaging industry for its excellent
in applying one or two coats on each side corrosion protection, appearance, strength,
of the strip. Further highlights of Danieli light weight, formability and resistance to
technology are high flexibility for processing attack by organic substances both for food
different strip dimensions and coating and non-food packaging products.
compositions, precise coating thickness, The long experience of more than 100
special design and control of curing ovens projects, both for new lines and revamping Finished coil from an Electrolytic Tinning Line
for high efficiency, excellent quality and activities, guarantees that DWU equipment
enhanced environmental solutions. represents the state-of-the-art for electrolytic mechanical, fluids, process and electrics and
DWU has supplied 26 Colour Coating tinning lines, including cleaning and pickling automation. This is the best solution to cover
lines since 1962. The most recent installation equipment, tension leveler, tin free steel (TFS) the responsibility of the process and to have
is the state-of-the-art galvanising cum high- and tin plating equipment, and finishing quick learning curve for the benefit of the
speed painting line for the production of equipment. An innovative electrolyte end users.
With trendsetting technologies in rolling
and processing developed over decades of
experience as a partner of the steel industry,
DWU is in a unique position to provide
the right selection of rolling and processing
plants to cater to the stringent requirements
of new steel grades with outstanding product
quality required in the presently growing
market.
Steel Insights Bureau As a part of the major expansion plan of preparation station, payoff reel with pup
SAIL, it was decided to install a state-of-the- coil removal system, entry bridle unit, etc.
C
hairman and managing director of art new CRM complex in Bokaro Steel Plant ♦♦ Mill stand equipment consisting of mill
Steel Authority of India Limited to cater to the wide spectrum and high ends stand with rolls, chocks & bearings,
(SAIL), C.S. Verma, inaugurated of cold rolled steel products in the market bending blocks, quick work roll change
the state-of-the-art and most advanced Skin particularly targeting the automotive, white device, hydraulic wedge for pass line
Pass Mill (SPM) in India supplied by Danieli goods and appliance sectors. adjustment, backup roll change system,
for the 1.2 million tons per annum (mtpa) This new CRM complex has been wet skin passing headers and nozzles, anti
new Cold Rolling Mill complex (CRM III) installed in the premises of Bokaro Steel crimp roll, cobble guards, roll polishing
at the Bokaro Steel Plant (BSP) on January Plant to produce 1.2 mtpa of cold rolled and device, etc.
18. galvanised/galvannealed coils using 1.3 mtpa ♦♦ Delivery section consisting of strip blow-
The following are the brief technical hot rolled coils from the existing HSM. The off unit, thickness gauge, shape meter
specifications of this 0.9-mtpa SPM: incoming hot rolled coils will be processed in roll, hydraulic shear, electrostatic oiler
the PLTCM and BAF before the cold rolled unit, tension reel, belt wrapper, exit coil
♦♦ Capacity : 860,000 tons per annum
annealed coils are skin passed in this SPM. car and exit walking beam conveyor
♦♦ Strip thickness : 0.25 to 2.0mm
This SPM will be able to process very system.
♦♦ Strip Width : 800 to 1600mm soft materials like IF grades and very high
♦♦ Coil weight : 31 tons (maximum) strength steels with necessary elongation, Danieli’s scope of supply for this SPM
♦♦ Mill speed : 1300mpm (max) on no load, hardness, flatness and strip roughness also included all auxiliary systems (hydraulic,
1200mpm (max) operating required by mainly the automotive industry. pneumatic, lubrication, fume & dust extract
♦♦ Skin pass mode : Both wet and dry skin Designed as a raised mill with strip flow systems, etc,) and complete electrics and
passing from left to right, it will mainly consist of the automation systems which were implemented
♦♦ Steel grades: CQ, DQ, DDQ, EDDQ, following equipment: by Danieli Automation. This state-of-the-
HSLA, IF, BH, etc. ♦♦ Entry section including walking beam art Skin pass Mill is the first unit to be
♦♦ Yield strength: 140 to 400M/mm2 conveyors, down enders, coil cars, coil inaugurated in Bokaro CRM Complex III.
W
hat ails the domestic steel sector commented to a question by Rajiv Bhutara,
director at Maharishi Alloys P Ltd. leadership.
most? Well, there are a little too At present SAIL has a countrywide
many to keep count of. Delay The discussion followed the recent
announcement by India’s steel minister Beni retail network comprising around 2,400
in project approvals, land acquisition, raw dealers at the district level and around 500
material availability, duty free import of Prasad Verma who informed Parliament that
the present per capita consumption of steel in dealers at the taluka/block level. The SAIL
specialised steel – just to name a few of chairman urged his marketing executives
the road-blocks. Yet, there is hardly any the country is 59 kg.
The minister further said that the rural to attain higher peaks of achievement by
slowdown in capacity expansion by the strengthening customer-centric efforts
domestic steelmakers. Almost all the major market has been identified by the government
including customization of products.
manufacturers including SAIL, Tata Steel, as one of the areas where the potential of steel
Drawing attention to the array of
JSW and RINL are indulging in ambitious consumption can be enhanced further and
new products that would come into the
expansion projects many of which will come ministry of steel has launched a campaign for
market upon completion of SAIL’s massive
on stream during the Twelfth Five Year popularising usage of steel in rural areas.
modernisation and expansion programme,
Plan (2012-17). Ask the industry people He added that the Institute of Steel
currently under implementation, he stressed
about the basic logic behind this apparent Development and Growth (INSDAG)
upon further consolidating the company’s
contradiction, and you get a unanimous view has been frequently conducting training
market leadership through provision of more
– demand growth. programmes to create awareness about the
value-added products and services.
In the past, the demand factor was more use of steel. The main producers have already
an assumption than an approximation. But established a wide network of rural dealers/ Tata Steel expansion
now with the government and the economy distributors so as to make steel available in
the remote corners of the country. INSDAG Meanwhile,
graduating to regular record-keeping, such
is also working on revised designs of pre Tata Steel is
estimates and approximations are becoming
available to the public. In a recent discussion fabricated/semi fabricated applications as expecting to
at the ISMW platform on LinkedIn, the well as increasing aesthetics of steel used in start full capacity
industry insiders threw light on the quantum various projects. production at
of steel consumption/demand growth in the He said that necessary action has since Jamshedpur plant this quarter after its
domestic market. been initiated to increase and popularise modernisation, according to reports.
According to Susmita Dasgupta, chief consumption of steel in the country. H.M. Nerurkar, MD of Tata Steel, said
economist, The industry insiders hope that the that modernisation of the Jamshedpur plant
Joint Plant high growth in demand, if sustained, would is over and commissioning of 9.7 million tons
Committee drive out the various impediments and red is almost complete.
(JPC), the tape. This will be the driving force behind Referring to Tata Steel’s Kalinganagar
country’s per overall growth in the industry and will help project in Odisha, Nerurkar said the
capita steel ease bottlenecks that are putting all kinds of project is going great and is expected to be
consumption restrictions currently. commissioned in the first phase in 2014.
M
ovement of iron ore through the
12 major Indian ports dropped
sharply by 54.56 percent in
the April-December 2012 period due to
restrictions imposed on mining and a hike
in export duty on iron ore. The major ports
together handled 21.72 million tons (mt)
during the period against 47.81 mt in the
same period last year.
According to data released by the Indian
Ports Association (IPA), Vishakhapatnam however, was about 16.04 percent lower than December period compared to 89.89 mt of
port handled the highest volume of 8.79 mt the iron ore traffic moved through the port in tonnage and 5.84 million TEUs in the same
of iron ore in April-December. This volume, the same period last year. period last year.
The ports Among the major ports, Paradip port
together handled had the distinction of handling the highest
Traffic handled at major ports
(During Apr-Dec, 2012* vis-a-vis Apr-Dec, 2011) 405.27 mt of traffic volume of thermal coal of around 15.16 mt
(*) Tentative (in '000 tons) during the period, in April-December period. Visakhapatnam
about 3.09 percent port handled the highest quantity of 5.15 mt
April to December traffic % variation against
Ports lower than 418.20 mt of coking coal during the period.
2012* 2011 prev. year traffic
recorded during the Movement of coking coal through
Kolkata same period last year. Paradip, Kolkata, Visakhapatnam and
Kolkata dock system 8666 9392 -7.73 They also
Chennai ports declined during the period
handled a total of
Haldia dock complex 20198 24427 -17.31 when compared to the corresponding period
20.91 mt of coking
Total: Kolkata 28864 33819 -14.65 last year.
coal in the period,
Five major ports showed negative
Paradip 40749 40500 0.61 down 3.68 percent
growth in traffic handling during the April-
Visakhapatnam 44201 52646 -16.04 from 21.71 mt
December period of the current fiscal, while
handled in the same
Ennore 12212 10392 17.51
period last year. the remaining seven showed positive growth
Chennai 39896 41940 -4.87 Movement of on a year-on-year basis.
V.O. Chidambaranar 20951 20853 0.47 container traffic in In terms of growth, Ennore port topped
terms of tonnage the list with a 17.51 percent increase in cargo
Cochin 14893 14872 0.14
fell in the April- throughput. Cochin port’s growth was lowest
New Mangalore 27025 24233 11.52 at about 0.14 percent during the period. In
December period,
Mormugao 14918 28337 -47.36 while that of TEUs terms of traffic volume, Kandla port clinched
Mumbai 44090 40217 9.63 also dropped during the top rank with a cargo volume of 69.49 mt
the period. The recorded for the period.
JNPT 47977 49489 -3.06
major ports handled The Mormugao port registered the
Kandla 69497 60910 14.10 highest decline of 47.36 percent in traffic
89.23 mt of tonnage
Total 405273 418208 -3.09 and 5.76 million handling during the period due to a fall in
Source: IPA TEUs in April- iron ore export.
T
he Indian Railways transported
9.46 million tons (mt) of iron ore in
December, moving up 13 percent over
8.37 mt transported a month ago, according
to information available with Steel Insights.
Thus, revenue from transportation of
iron ore for exports, steel plants and for other
Macroeconomic
INR movement against select major currencies
72 88
70
68
66 83
indicators of India
in Rs crore
290000 share and debt markets. US non-farm payroll data may decide on INR’s future progress.
in million $
1550000
288000 However, the upcoming stake-sale by the government in state-owned power producer
286000 1500000 NTPC Ltd is likely to boost FII investment and improve INR versus the USD. If the inflows
284000 of USD for the stake sale are large enough, the INR may breach the 53 mark.
1450000
282000
280000 1400000 Inflation rate in India
1-Jun-12
15-Jun-12
29-Jun-12
6-Apr-12
20-Apr-12
2-Nov-12
16-Nov-12
30-Nov-12
27-Jan-12
10-Feb-12
24-Feb-12
9-Mar-12
23-Mar-12
4-May-12
18-May-12
10-Aug-12
24-Aug-12
7-Sep-12
21-Sep-12
14-Dec-12
28-Dec-12
11-Jan-13
25-Jan-13
13-Jul-12
27-Jul-12
5-Oct-12
19-Oct-12
11.00%
10.00%
in Million $ in Rupees crore
8.07%
8.01%
9.00%
7.69%
7.56%
7.58%
Source: rbi
7.23%
8.00%
India’s foreign exchange (forex) reserves increased by $77.6 million to $295.74 billion for
7.00%
7.50%
7.52%
7.55%
the week ended January 27. Forex reserves had decreased by $580.3 million to $295.67
7.32%
7.24%
billion for the week ended January 18. Foreign currency assets (FCA) went up by $79.3 6.00%
million at $261.70 billion during the week ended January 27. While it got lowered lower by 5.00%
$646.8 million at $261.62 billion in the previous week. Gold reserves value remained the
same at $27.21 billion for the two weeks under consideration. The special drawing rights
(SDRs) dropped by $0.5 million to $4.43 billion during the week ended January 27, while it
had increased by $2.3 million to $4.43 billion during the previous week. Reserves with IMF
Source : OEA, GoI, Ministry of Commerce & Industry
went down by $0.2 million to $2.38 billion for the week ended January 27.
India’s WPI based headline inflation rose to 7.18 percent in December. This propelled RBI
to cut interest rates to boost economic growth rates. October inflation rates got revised
Wholesale price index (Selected categories) to 7.32 percent from 7.45 percent. The slowdown in inflation for December was led by a
230
220
moderation in the prices of fuel and manufactured goods. Experts opine that manufactured
210 goods will trend lower in the coming months which will bring down inflation rates.
200
190
Index of Industrial Production
180
170
205
160
150 185
140
130 165
120
110 145
W
orld crude steel production for year, an increase of 4 percent as compared to South
6 69.3 68.5 1.2
2011, when production stood at 684.275 mt. Korea
the 62 countries reporting to
the World Steel Association China’s share of world crude steel production 7 Germany 42.7 44.3 -3.7
(Worldsteel) rose by 1.2 percent to 1510.133 increased from 45.4 percent in 2011 to 46.3
8 Turkey 35.9 34.1 5.2
million tons (mt) in 2012 as compared to percent in 2012.
Elsewhere in Asia, Japan produced 9 Brazil 34.7 35.2 -1.5
that reported in 2011 at 1491.086 mt. Again,
crude steel production for December 2012 107.235 mt of crude steel in 2012, a slight 10 Ukraine 32.9 35.3 -6.9
was higher by 3.62 percent compared to decrease of 0.33 percent compared to 107.595
December 2011. mt last year. India’s production for 2012 produced 27.2 mt in 2012, a 5.2 percent
In 2012, Asia produced 982.711 mt of stood at 76.715 mt, up 6 percent compared
decrease over 2011. France’s crude steel
crude steel, an increase of 3 percent over 2011 to 72.206 mt 2011. South Korea produced
production in 2012 was 15.6 mt, a decrease
when production stood at around 955.208 69.321 mt during 2012, a 1 percent increase
of 1.1 percent. Spain produced 13.6 mt of
mt. The EU produced 169.428 mt of crude on the same period in 2011.
crude steel in 2012, a 12.1 percent decrease
steel in 2012, down by 5 percent compared In the EU, the EU recorded a decrease
on 2011.
to 177.468 mt produced in 2011. North of 4.7 percent compared to 2011, producing
In 2012, The CIS showed a decrease of
America’s crude steel production in 2012 was 169.4 mt of crude steel in 2012. Germany
121.863 mt, 2 percent higher than 118.961 1.2 percent in 2012, producing 111.3 mt of
produced 42.7 mt of crude steel in 2012,
mt of 2011. crude steel. In 2012, crude steel production
a decrease of 3.7 percent on 2011. Italy
in North America was 121.9 mt, an increase
World crude steel production of 2.5 percent on 2011. Annual crude steel
in ‘000 tons production for South America was 46.9 mt
Dec 12 / in 2012, a decrease of 3.0 percent on 2011.
World Crude Steel
Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Dec 11 (% Russia produced 68.9 mt of crude steel, a
Production
change)
2.5% increase on 2011 and Ukraine recorded
European Union (27) 14,228 12,028 14,301 14,161 13,595 11,975 -4.51% a decrease of -6.9% with a year-end figure of
Other Europe 3,264 3,175 3,186 3,020 3,142 2,991 -10.59% 32.9 mt.
C.I.S. (6) 9,172 9,250 9,280 8,933 8,904 8,925 -4.22% Turkey’s crude steel production for
North America 10,014 10,348 9,592 9,582 9,511 10,087 -0.46% 2012 was 35.9 mt, an increase of 5.2 percent
South America 3,937 3,836 3,835 4,185 3,873 3,603 -5.06% compared to 2011. The US produced 88.6
mt of crude steel, 2.5 percent higher than
Africa 1,166 1,213 1,153 1,196 1,151 1,217 1.25%
2011. Brazil produced 34.7 mt in 2012, down
Middle East 1,404 1,589 1,642 1,634 1,659 1,640 -4.58%
by 1.5 percent compared to 2011.
Africa/Middle East 2,570 2,803 2,795 2,830 2,810 2,857 -2.18% The crude steel capacity utilisation
China 61,693 58,703 57,946 59,096 57,471 57,656 10.53% ratio of the 62 countries in December 2012
India 6,359 6,476 6,299 6,604 6,400 6,600 7.32% declined to 73.2 percent compared to 76.1
Japan 9,251 9,207 8,802 8,836 8,505 8,569 2.04% percent in November 2012.The average
South Korea 5,907 5,632 5,661 5,651 5,640 5,811 -2.33% capacity utilisation ratio in 2012 was 78.8
percent compared to 80.7 percent in 2011.
Taiwan, China 1,761 1,730 1,440 1,675 1,664 1,770 -7.81%
It is to be noted that the January to
Asia 84,971 81,747 80,147 81,862 79,681 80,406 7.81%
December 2012 data covers 62 countries
Oceania 494 519 511 504 473 450 6.17% against 64 in January to December 2011.
Rest of the world The 62 countries included 2012 accounted
66,957 65,004 65,702 65,979 64,519 63,637 -1.94%
except China
for approximately 98 percent of total world
World 128,650 123,707 123,648 125,075 121,990 121,293 3.62% crude steel production in 2011.
F
lat steel markets across the country been slow due to appreciation in rupee. The
away. With barely two months to go for the
continued to be sluggish as demand average transaction prices for IS 2062 grade
culmination of FY’12-13, the revival seems
remained weak. As market sentiments A/B structural HRC, 3mm thick and above
to be lost cause even if there is some cutback
continued to be weak, SAIL increased its base averages at `33,500-34,000 per ton.
in February with barely month to go after
prices in an attempt to lift the sentiments. Indian exporters are looking to raise
that.
Nevertheless, given the current situation offers for HR coil
of the demand which continues to be fragile, for March delivery Domestic HR coil prices (HRC - 2.5mm – cold rolling)
the raised prices may not generate much given the rising Date Kolkata Kanpur Delhi
interest. Meanwhile, the appreciation in the export offers from
04-Jan-13 36490 37050 35910
rupee has checked the imports which might China, Japan and
South Korea amid 10-Jan-13 36200 37480 36440
support the prices. Thus it is the matter of
time that would state whether the rise would higher raw material 17-Jan-13 35940 37480 36440
in December 15-Jan
7-Jan
20800
21400
20100
20600
19100
19300
Source: Steel Insights Research
Sponge iron
Sponge iron (DRI) prices in some Indian
markets eased in January on low buying
support, market sources told Steel Insights.
In fact, most plants are still operating below
capacity, industry sources informed, and
manufacturers believe prices are at bottom in
view of the disturbed supply of iron ore in
the country.
Pig iron
NINL slashed its steel grade pig iron prices
further by `500 per ton on January 7, 2013
and reviewed their prices again on January 17.
However, on account of the sluggish demand
Steel Insights Bureau any hint of real demand in the market. The scenario, NINL on January 17 decided to
prices have more or less at its previous levels. keep the prices fixed at `22,000 per ton
T
he scrap steel market remained Imported scrap offers to the Indian (basic). NINL is also offering discounts
sluggish in January on demand market more or less remained stable with
as high as `400 per ton for bulk purchase
worries still haunting the market. offers for shredded scrap (containerised)
over 7,000 tons, bringing down the price to
The sentiment remained fatigued with hardly varied from $420-425 per ton cfr, Mumbai,
`21,600 per ton (basic). As per the market
sources, booking does not seem impressive.
Melting scrap price trend (` per ton) RINL too finding it difficult to dispose
Date
Mandi
Durgapur Raipur Kandla Chennai Jamshedpur their materials as the overall demand
Gobindgarh continues to remain slackened. In the second
Dec’12 Week 1 24562 24290 23700 22700 23000 24560 week of 2013, RINL managed to conclude a
Dec’12 Week 2 24234 24050 23400 22400 22600 24560 deal of 100,000 tons of Pig iron at `21,400
Dec’12 Week 3 24424 24058 23100 22460 22800 24560 per ton (ex works Vizag). Now the injection
Dec’12 Week 4 24847 24050 23100 22633 23000 24560 of this 100,000 tons in the market has resulted
in oversupply and hence a further correction
Jan’13 Week 1 25228 23996 24300 22500 23200 24560
may be witnessed in the coming days.
Jan’13 Week 2 25180 24390 24300 22560 23500 24560
NINL and RINL are again expected
Jan’13 Week 3 24930 24305 24200 22900 23500 24560 to review their prices in the first week of
Jan’13 Week 4 24975 23862 24150 22933 23433 24560 February. The direction of their price revision
The above prices in `/ton (basic) Source: Steel Insights Research remains unclear at the moment.
NOTE: (1) All prices are in Rs./Tonne and has been compiled on the basis of average of Main & Others producers’ price. (2) Prices are inclusive of Excise
Duty & Sales / Vat Tax (3) All prices are as on 15 day of every month (4) Prices are indicative
FINISHED STEEL
SAIL 7241 6732 7.6 202 199 1.5 7443 6931 7.4
(a) Prod. of Main Producers 13759 12885 6.8 202 199 1.5 13961 13084 6.7
JSWL 7795 6324 23.3 936 687 36.2 8731 7011 24.5
(b) Prod. of Major Producers $ 15717 14138 11.2 936 687 36.2 16653 14825 12.3
Others 30366 30943 -1.9 2791 2663 4.8 33157 33606 -1.3
c) Total Production for Sale 53147 51436 3.3 3574 3306 8.1 56721 54742 3.6
d) Imports $ 4403 3853 14.3 1387 1131 22.6 5790 4984 16.2
e) Exports $ 3309 2750 20.3 469 298 57.4 3778 3048 24.0
e) Availability (c+d-e) 54241 52539 3.2 4492 4139 8.5 58733 56678 3.6
g) Apparent Consumption (e-f) 54849 52694 4.1 4488 4140 8.4 59337 56834 4.4
Real Consumption 50027 48393 3.4 3503 3246 7.9 53530 51639 3.7
Ex-works Rs/ kg
Ferro Vanadium
960 785 735
Ex-works Rs/ kg
Ferro Moly (Mo - 60% min)
1015 1020 985
Port Destination Country Date Product Category Fe Content Unit Price (in Rs/ton) Quantity (in tons.)
55 1,350 16,000
28-Dec-13 FINES
63.5/63 6,082 22,000
54 4,249 7,000
56 4,200 11,875
5-Dec-12 FINES
57 4,364 9,900
3,663 10,000
7-Dec-12 FINES 55.5
3,731 1,000