This resulted in firm global steel prices which in India appreciated by close to 50 percent and even more in international markets since February 2020.
Steel sector honchos believe there is some steam still left in steel prices despite the devastations being unleashed by the second wave of the Covid-19 pandemic.
But that assumption is largely based on the dry fact that domestic prices are still ruling at a discount to global prices and elevated iron ore prices might continue to support steel prices.
A very real threat to the steel sector comes from the lockdowns and disruptions, planned and intermittent, across the country forcing shopfloors to close down in several sectors beginning May.
From being seen as the superstructure on which India’s growth story is being built, steel sector has now turned into a key lifeline supporting the country’s sudden surging need for medical oxygen.
The oxygen in its liquid form which is usually kept in store at every primary steel maker’s facility is being diverted to hospitals and medical facilities.
While primary steel makers are keeping their furnaces running with the gaseous oxygen, the secondary steel plants, the fabricators and other steel processing facilities are being forced to close down with a ban on use of industrial oxygen.
Closure of showrooms and logistical disruptions have forced most of the auto companies to keep their factories shut for most part of May.
This would undoubtedly impact steel overall steel consumptions in coming days.
The macro story
هذه القصة مأخوذة من طبعة May 2021 من Steel Insights.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة May 2021 من Steel Insights.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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Steel's Net Zero mission
The country’s commitment to achieving Net Zero within a targeted timeframe will now propel its steel sector towards a sustainable future in line with global trends.
Fuel Price Hike, Supply Chain Disruption Hurt Festive Sales
Supply chain disruptions and fuel price hikes have hurt festive sales in a big way as most auto majors posted decline in sales in October.
Seaborne coking coal offers remain range-bound
Seaborne coking coal offers moved in a narrow range in October amid global supply tightness and healthy spot demand.
Global crude steel output down 8% in September
China manufactured 74 mt in September, fall of 21% y-o-y while India’s production went up by 7% to 10 mt.
MOIL embarks on expansion projects
“Even though our country is blessed with manganese ore reserves, we import 50% of the domestic requirement. We have to lower our import dependence and save precious foreign exchange.” Ram Chandra Prasad Singh, Steel Minister
Iron ore handled by major ports down 17% in H1
The 12 major Indian ports handled 27 mt of iron-ore during H1 of 2021, down by 17% from 33 mt recorded for the corresponding period of previous year.
Shrinking China output to boost India exports
“In the third quarter of 2021, the company actively responded to the pressure from external policies, such as production curtailment and dual control system on energy consumption and intensity, as well as coal resource shortage and surging prices.” Baoshan Iron and Steel Co Ltd
Indian Railways' iron-ore handling up 25% in H1
Indian Railways in April-September of 2021 (H1) transported 84 mt of iron ore, up by 25% over 67 mt during April-September 2020.
September crude steel production up 7.2% y-o-y
India’s crude steel production in September 2021 grew 7.2 percent to 9.547 million tons (mt) over September 2020 but was down by 3.2 percent from August 2021 output, provisional steel ministry data showed.
“Five enablers: way forward to sustainable cleaner steel”
Right and scalable technology, appropriate policy guidance by government, access to finance to fund transition, willingness of customers to pay for cleaner products and infrastructure for use of new technologies are the need of the hour for the sustainable and cleaner steel industry, according to Madhulika Sharma, Chief Corporate Sustainability, Tata Steel.