Page 10 - Steel Industry

Govt asks major steel companies to use iron ore fines also for steel making

To increase the usage of available raw materials, the Ministry of Steel has directed integrated steel players to make use of iron ore fines in steel making after its beneficiation. As per sources, the ministry has also suggested that players look at options like acquiring coking coal mines abroad. This is aimed at increasing the availability of raw materials at competitive prices, they said. "It has been conveyed to them that iron reserves are limited in the country and to preserve that, players must also use low grade ore through beneficiation process. They can also look for coking coal mines outside India," the sources said. Iron ore and coking coal are the two key raw materials used for manufacturing steel through blast furnace route. While iron ore is available in abundance, for coking coal, India remains heavily dependent on imports. Major players use only high grade ore (lumps), with 65 per cent and above iron content, to make steel through BF (blast furnace). Fines are low

Germany's Thyssenkrupp loses fight against EU veto of Tata Steel JV

EU competition enforcer said the deal, which had aimed to tackle over-capacity and other challenges in the steel industry, could result in price hikes

Govt to launch another PLI scheme for speciality steel, says steel secy

The government is working on the another round of the PLI scheme for speciality steel as the response for the first round of the initiative did not meet expectations, according to Steel Secretary Sandeep Poundrik. The top ministry official made the remarks at CII Steel Summit 2024 in the national capital on Friday. In his address, Poundrik said speciality steel is still one area where more is needed to be done. The government brought a PLI to incentivise specialities steel but the offtake was not as expected. "So we are bringing another round of PLI so that we can get more interest in the speciality steel business," he said. Later speaking to PTI, the secretary said the government had launched Rs 6,400 crore PLI Scheme for speciality steel, out of that only Rs 2,600 crore could be allocated. Speciality steel is high grades used in sectors like defence, automobile, and electrical among others.

India's finished steel imports from China hit 7-year high in April-August

China was the largest exporter of finished steel to India during this period, followed by South Korea and Japan, primarily shipping stainless steel, hot-rolled coil steel, galvanised sheets, plates

Correction in Indian steel stock market could be a buying opportunity

Domestic crude steel production for eight months of CY24 has risen 7.4 per cent YoY to 98.7m tonnes

India proposes retaliatory duties on EU's safeguard steps on steel products

India has proposed the imposition of retaliatory customs duties, under the WTO norms, on certain value of goods imported from the EU, as the two sides have failed to reach a consensus on the European Union's safeguard measures on some steel products. In a communication to the World Trade Organisation (WTO), India said that it has proposed suspension of concessions will take the form of an increase in tariffs on selected products originating in the EU. "India hereby informs that from 2018 to 2023, the safeguard measures (of the EU) have resulted in cumulative trade loss for India to the tune of USD 4.412 billion on which the duty collection would be USD 1.103 billion. "Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the EU," the communication said. It added that to ensure the effective exercise of its right to suspend substantially equivalent concessions, India reserves its right to effectuat

Tata Steel commissions blast furnace, boosts Kalinganagar capacity

With the current expansion, Tata Steel's capacity across sites in Odisha is at 14.6 mt. In Jharkhand, Tata Steel's capacity is at 12 mt, of which Jamshedpur Works is at 11 mt

Jindal India plans to invest Rs 1,500 crore to expand production capacity

Jindal India, a downstream steel player, on Thursday announced its plans to invest Rs 1,500 crore to increase its annual production capacity to 1.6 million tonne. The expansion focuses on the production of coated flat products, pipes, and crash barriers, the company said in a statement. "Jindal India announces a capex spend of over Rs 1,500 crore to effect a strategic capacity expansion of 0.6 Million MT, a 60 per cent increase from its current capacity of 1 million metric tonne per annum," it said. The expansion is expected to be completed by the financial year 2025-26, while the production is slated to be started within the ongoing fiscal, it said. The increased focus on rapidly augmenting the nation's highway network with critical safety components such as crash barriers is a key area where Jindal India has been adding value, a company spokesperson said. Part of B C Jindal Group, Jindal India Limited is into manufacturing of colour-coated and galvanized steel sheets and coils,

India's steel companies look forward to recycle mandate for automakers

Proposed mandate will help steel scrap availability and in reducing emissions, they say

Domestic steel consumption likely to see 9-10% growth in FY25: ICRA

Domestic steel consumption is likely to witness 9-10 per cent growth this financial year, rating agency ICRA said on Thursday. The demand for steel was robust in the first quarter of the ongoing financial year with consumption growing at a rate of 15 per cent on a year-on-year basis amidst competitively priced imports. "ICRA projects the domestic steel consumption growth at a healthy 9-10 per cent in FY2025," the rating agency said in a statement. Demand may record some sequential slowdown in the current quarter as it is seasonality associated with monsoon, following which government capex may display a back-ended pick up. "ICRA expects the industry to witness capacity utilisation at a decadal high of 88 per cent in spite of an all-time-high capacity addition of 15.6 MTPA (million tonnes per annum) in FY2025 as well as the surge in imports," the rating agency said. For the last three years, the steel sector is going through the fastest period of growth witnessed since the global .

P S Raj Steels plans to raise capital through IPO to fund growth plans

Stainless-steel pipes and tubes manufacturers and suppliers P S Raj Steels Ltd (PSSR) on Tuesday said it planning to raise funds through an initial public offering (IPO) very soon to fund its growth plans. "Looking to expand its business beyond the existing markets in India, the Hisar-headquartered company has set its sights on an IPO," PSSR said in a statement. The company also announced plans to achieve Rs 500 crore in revenue by FY27. The company has appointed Khambatta Securities Ltd as the book running lead manager to the offer. The company operates a manufacturing plant with an installation capacity of 13,460 metric tonnes per annum, which is spread over an area of three acres in Hisar, Haryana. It supplies finished goods under the brand name 'PSSR' in 19 states across India, including Uttar Pradesh, Haryana, Punjab, Madhya Pradesh, Delhi, and Rajasthan. "In pursuit of expanding our business across India and strengthening it in the existing markets, we are planning to raise

Govt working on policy framework for decarbonisation of steel sector

The Centre is working on developing a policy framework for formulating strategy, roadmap and action plan for decarbonisation of the steel sector, a top official said on Tuesday. Speaking at an event here steel secretary Sandeep Poundrik said, "The ministry of steel is working on developing a policy framework...while covering solutions ranging from minimisation to carbon avoidance to carbon utilisation." Towards this, the ministry has constituted 14 high-powered task forces to carry out discussions, deliberations and brainstorming on various enablers for decarbonisation, with the involvement of experts and the industry stakeholders. These task forces consisted of members from industry, academia, think tanks innovators, various ministries and government departments. The inputs of the task forces have been compiled into a comprehensive document. "I am proud to present the report 'Greening the steel sector in India-Roadmap and Action Plan' as a critical milestone in our efforts to ..

Piyush Goyal for border adjustment tax to safeguard steel industry

Union Commerce and Industry Minister Piyush Goyal's statement comes at a time when the steel industry is seeking protection from imports at predatory prices

Goyal suggests talks on carbon tax issue with top steel industry leaders

Commerce and Industry Minister Piyush Goyal on Thursday suggested discussions on carbon border adjustment tax with top steel industry leaders to promote sustainable manufacturing in the sector. He also asked the industry to target 500 million tonnes steel production by 2047. At present, the industry is eyeing 300 million tonnes by 2030. The minister suggested the industry find newer and better ways on lowering carbon emission and promoting high productivity and quality steel in the country. "Let's try and utilise AI (artificial intelligence) to optimise our production, reduce waste, and improve efficiency across the value chain and work towards a circle economy in a bigger way," he said, while addressing a steel conclave virtually. On carbon tax, he suggested that 4-5 top leaders of the steel industry can sit with him on this important subject for deliberations. The minister added that the government was not able to extend the benefits of the Remission of Duties and Taxes on Expor

The road ahead: Steel recycle mandate for automakers on the anvil

"We recently held a meeting with members of the Society of Indian Automobile Manufacturers (SIAM). The final regulations are likely to be issued in the next 10 days," a government source informed

Pricing weakness likely to weigh on Indian steel companies stocks

In Q1FY25, Tata Steel and JSW Steel posted flat operating profit margins as higher volumes and lower input prices compensated for low steel prices

New mining cess may increase cost pressures for steel industry: ICRA

The power sector, which is heavily dependent on coal, may see a rise in the cost of supply by 0.6 per cent to 1.5 per cent, potentially leading to higher retail tariffs, ICRA added

New mining cess may increase cost pressure for steel makers: ICRA

The enforcement of the new mining cess by some states following the Supreme Court ruling may bring challenges for the domestic steel industry by adding to the cost pressures, according to rating agency Icra. On August 14, the Supreme Court upheld the power of states to levy tax on mineral rights and mineral-bearing land, and allowed them to seek refund of royalty from April 1, 2005 onwards. This development is poised to compress operating margins across the sector, impacting both primary and secondary steel producers, Icra said in a note. While margins of the primary steel producers could shrink by 60-180 basis points, secondary producers may face a more severe impact, with margins declining by 80 -250 basis points, based on various scenarios that cess rates could vary between 5-15 per cent. The power sector, which is heavily dependent on coal, may see a rise in the cost of supply by 0.6-1.5 per cent, potentially leading to higher retail tariffs. Further, primary aluminium producer

India steel market hit by unfair imports amid slump in China: Ex-steel secy

Indian steel market is hit by unfair imports and dumping amid a demand slump in China and the government needs to take action in a time-bound manner, former steel secretary Nagendra Nath Sinha has said. "If you take flat steel products, imports are certainly an issue. The slump in the Chinese market has really shaken the (domestic) market," Sinha, who superannuated on July 31, said at the 7th edition of BigMint's Indian Iron Ore and Pellet Summit on Friday. He also warned of the price realisations getting affected due to surging imports impacting the profitability of steel makers. "To the extent the imports currently happening are unfair and there is dumping going on and the Indian government should certainly respond to them in a timeframe," Sinha said. His statement assumes significance as local steel players have been raising the issue of imports for months from select countries including China. Steelmakers have raised concern that India is becoming a net importer of steel agai

Steel sector's tech investment likely to hit $2.7 bn by 2030: Report

The investments in process and digital technologies across the steel value chain in the country are expected to grow up to USD 2.7 billion by 2030, according to a report. These investments will advance technological capabilities and drive progress toward a more efficient and sustainable mining and steel industry, the FICCI-Deloitte Report said on Thursday. "The investment in process and digital technologies across the steel value chain in India is projected to increase from USD 1-1.2 billion in 2024 to USD 2.3-2.7 billion by 2030, excluding ERP upgrades," said the report on 'Automation, Digitalisation and Technology Integration for the Indian Mining and Steel sector'. The year 2030 is significant for the domestic steel industry as the government's National Steel Policy 2017 aims to scale up India's installed steel-making capacity to 300 million tonne by 2030. As per the report, the per capita steel consumption is anticipated to reach 160 kg by 2030 and around 220 kg by 2047. Digit