Professional Documents
Culture Documents
STEEL SECTOR
BY ANISHA FERNANDES
UNDER THE GUIDANCE OF RAGHUNANDAN
Steel is the common name for a large family of iron alloys .
Steels are commonly made from iron ore, coal, limestone and other
traces of elements.
STEEL INTRODUCTION
Natural Resources – Ore, Coal, Water
etc.
Manufacturers
Government – Infrastructure
Ecosystem Development, policies, allocation of
resources, lending
Investors
Non-alloy Sponge
Alloy Steel Pig Iron
Steel Iron (DRI)
Global In China:
2018-928.3 MT
China’s
Domestic
Steel
demand
exports
Indian non alloy) was 126.85 mt, a growth of 5.6% over last
year.
Scenario • Indian Steel Industry currently accounts for 2.0 per cent
of India’s GDP
18
16
14
12
10
0
di
a el we
r m
In Ste Po Ni ga
of ta & at
Ta el
r i ty te I sp
ho lS a
Aut da tri y
el Ji n sh
Ste Ra
Iron & Steel Producing Regions in India
• Jharkhand
• Chhattisgarh
• West Bengal
• Orissa-potential
to produce 100
MT of steel, 1/3
would be from
orissa
• Maharashtra
Steel Prices
• Domestic - Hot Rolled Coil Prices (Rs/Tonne)
Source: Bloomberg
• The coal based route accounted for 79% of total
sponge iron production (30.51 mt) in the country in
2017-18
• India produced 9.2 MT of crude steel in January
2019
• India’s crude steel and finished steel production
increased to 102.34 MT and 104.98 MT in 2017-18,
respectively.
Production
Source: JPC
National Steel Policy 2017
Domestic Demand
Import
Export
India is the world’s ninth-largest steel exporter and fifteenth-largest steel importer.
In 2017-18, the country’s finished steel exports increased 17% year-on-year to 9.62 million
tonnes (MT), as compared to 8.24 MT in 2016-17.
Top five source countries for India’s steel imports represented about 79% of the total steel
import volume
Imports- Iron & steel are freely importable as per the extant policy.
India emerged as a net exporter of total finished steel in 2016-17 and 2017-18.
Steel Imports 30
25
• Imports 20
represented
about 79% of the Percentage
15
total steel import
volume.
10
0
South Korea China Japan Indonesia Taiwan
Percentage
Steel Exports 20
18
16
14
12
• Top 10 steel 10
markets 8
represented 62%
6
of India’s steel
export volume in 4
2018 2
n
y
l
s
pa
te
l
ai
Ita
iu
ira
Sp
Ne
lg
Em
Be
ab
Ar
d
ite
Un
eel Production (million tonnes)
100
90
80
70
60
50
40 Total Capacity (MT)
30
20
10
0
l
al ow
u
eta up SC
O
it a M ro O
r M B o S G P
lo na m I
rce Ch
i i to HB
A m
Su
&
teel
S
n
p po
Ni
Value Drivers
Key Parameters to Evaluate Steel
Companies
Sound Financials EBIDTA, Debt on Total assets, Free Cash Flows, Profitability
Government
Environment, Land Acquisition, Water Access
Clearances
• Capacity Utilization
• Fuel
Import From
other countries
FSA
Opportunities for growth of Iron and Steel in Private Sector
• Environmental clearances
Eg. Closedown of iron ore mines in Goa
• Cyclical in nature
Colgate scam
• 1.86 Lakh Cr Scam
Manufacturing Zones,
75,000 MW Clean- Housing and
Energy initiative (by construction sector
2022)
Glossary
• Mt- Millon Tonne
• Hot-rolled s
• NSP- National steel policy
THANK YOU
Import and Export
• India imported 14.5 MT of steel
• It is reported by JPC that exports of iron and steel related products of 11.5
MT worth Rs 59,475 crore have been undertaken during the period
resulting in trade deficit of Rs 22,661 crore.