Page 11 - Steel Industry

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

India remains net steel importer in April-July on rise in Chinese shipments

India imported 2.69 million metric tons of steel between April and July, and exported 1.57 million tons, the data showed

Tata Steel acquires about 1.16 bn equity shares in Singapore-based T Steel

Tata Steel on Wednesday said it has acquired about 116 crore equity shares in its Singapore-based arm for USD 182 million. "Tata Steel acquired 1,15,92,35,669 ordinary equity shares of face value USD 0.157 each aggregating to USD 182 million (Rs 1,528.24 crore) in T Steel Holdings Pte Ltd (TSHP)," the company said in an exchange filing. Post this acquisition, TSHP will continue to be a wholly-owned subsidiary of the company, it added.

ISA seeks export tax on low-grade iron ore, pellets to curb local shortages

India currently does not tax exports of low-grade iron ore, but levies a 30 per cent export duty on high-grade iron ore

Congress slams govt over bid to privatise steel plants, suffocate industry

The Congress on Saturday attacked the government over attempts to privatise steel plants, alleging the country's industrial base is being "suffocated" and Union Steel Minister H D Kumaraswamy is party to it. Congress general secretary in-charge communications Jairam Ramesh cited a written reply in the Rajya Sabha by Kumaraswamy. "Yesterday in the Rajya Sabha, the Minister for Steel revealed that the Modi Government has attempted and failed to privatise 4 steel plants and is currently attempting to privatise another 2," Ramesh said on X. None of these six privatisations were necessary, he argued. "Perhaps the Government's incompetence in enacting its own decisions, however ill-founded, is a small mercy," he said. However, these PSUs are now in a state of inactivity, and will be for an indeterminate period of time, Ramesh said. "The Government will not invest in them - in fact, there is evidence that the Government is actually systematically trying to further throttle these units t

Godawari Power and Ispat Q1 results: Net profit grows 24% to Rs 287 cr

Godawari Power and Ispat on Wednesday posted 24 per cent rise in consolidated net profit at Rs 286.89 crore for June quarter FY25, helped by reduced expenses. Net profit from ordinary activities after tax was at Rs 230.88 crore in April-June FY24, the company said in an exchange filing. Total income rose to Rs 1,372.42 crore from Rs 1,344.37 crore in the same quarter a year ago. Expenses reduced to Rs 987.30 crore from Rs 1,063.00 crore in first quarter last financial year. The company's board has also approved the appointment of MD Bajrang Lal Agrawal as the chairman with effect from August 9, 2024, in place of Shashi Kumar. Besides, the board approved a proposal for payment of a special dividend of Rs 1.25 per equity share of Rs 5 each on the occasion of 25th anniversary of the company. The payment will be made on or after August 28, 2024. The board also approved a proposal for sub-division of equity share with face value of Rs 5 each into 5 equity shares of Re 1 each, subject

Indian steel prices plunge to lowest level in over three years: BigMint

Increased imports from China and Vietnam into India, alongside Chinese supply in overseas markets, have made Indian exports uncompetitive in many regions, putting downward pressure on domestic prices

India shelves plan to form consortium for coking coal import: Report

Some steelmakers believe they will cease to get a discount under their long-term deals if they negotiate through a consortium, reports stated

Rashtriya Ispat Nigam stake sale plan likely to pick up pace this year

The Centre holds 100% in Visakhapatnam steel plant. RINL is the parent company of Eastern Investments Ltd (EIL), owning 51% in it

Not much scope for unlocking value if too many taxes added: Tata Steel CEO

Narendran discusses issues from the UK strategy to the potential impact of the recent Supreme Court ruling on mineral tax

Steeling a march: Big Boys of steel pushing pedal to drive future mobility

From setting up cutting-edge facilities to cater to the domestic market and building capabilities of global standards, the action is building up

India's domestic steel production likely to cross 300 mn tonnes by 2030

Expressing optimism in steel demand amid headwinds, a senior central government official said on Saturday that the domestic production is likely to cross 300 million tonnes by 2030. The ministry also does not foresee any hurdles in capacity addition due to decarbonisation efforts in the steel sector and will soon release a draft roadmap seeking public opinion to reduce the carbon footprint in the steel sector, which accounts for 12 per cent of total emissions, Steel Secretary Nagaendra Nath Sinha said. "The current steel demand remains strong with infrastructure push from the government and expecting a growth of about 10 per cent. The GDP is also growing robustly, and with continued emphasis on infrastructure from both government and private sectors, steel demand will continue to stay strong," Sinha said, while addressing members of the Bharat Chamber of Commerce (BCC). Finished steel output during 2023-24 was 138.5 million tonnes, up 12.4 per cent year-on-year. To achieve 300 milli

Aiming to expand in US, India, Nippon to dissolve JV with China's Baoshan

Nippon Steel has been looking to end cooperation with Baoshan, a subsidiary of state-owned China Baowu Steel Group, the world's largest steelmaker for about two years

Green steel to play key role in for low carbon economy: Economic Survey

Green steel will play an important role in reshaping the future of the industry as the world moves towards a low-carbon economy, the Economic Survey for 2023-24 has said. The concept of green steel promotes the production of steel using green energy sources and minimizing the usage of fossil fuels. "As the world moves towards a low-carbon economy, green steel is poised to play a pivotal role in reshaping the future of the steel industry," said the Survey tabled in Parliament on Monday. India's steel sector accounts for 12 per cent of India's greenhouse gas emissions with an emission intensity of 2.5 tonnes of CO2 per tonne of crude steel compared to the global average of 1.9 tonnes of CO2 per tonne of crude steel, it said. The Survey also said that India remained a net importer of steel during the first, second and third quarters of FY24 because of price differentials between international and domestic prices of finished steel. Low prices in the international markets led to reduce

JSW Steel Q1 FY25 results: Net profit drops 63.9% to Rs 845 crore

The Q1 FY25 net profit fell short of the Bloomberg consensus estimate of Rs 1280.2 crore

Vibhor Steel Tubes ups special steel capacity to 48,000 tonnes in Telangana

Vibhor Steel Tubes Ltd (VSTL) on Wednesday said the company has doubled its special steel manufacturing capacity at its Telangana plant to 48,000 tonnes from 24,000 tonnes. It has inaugurated a new Galvanizing Iron (GI) manufacturing unit in the state to increase the production of crash barriers which are widely used on medians, shoulders, verges, and high embankments, the company said in a statement. "Besides strengthening the production and supply of crash barriers to our customers across the country, the new state-of-the-art facility will further reinforce our position as a leader in the steel tubes and pipes industry," Vibhor Kaushik, Managing Director, Vibhor Steel Tubes Ltd, said. Haryana-based VSTL operates two manufacturing units in Raigad, Maharashtra and Mahbubnagar in Telangana with a total capacity of 2,21,000 tonnes per annum. The company is in the process of setting up its third steel project in Odisha which will take its overall capacity to 3,41,000 tonnes.

Don't see change in UK strategy: Tata Steel Chairman N Chandrasekaran

The transition from blast furnace to EAF technology puts 2,800 jobs at risk and the Labour government has been engaging in discussions to try and save jobs, according to reports in the UK