The merger, likely to be completed in 6 to 9 months, is based on Tata Steel’s vision to operate in 4 clusters - long products, downstream, mining and the utilities and infrastructure cluster.
Other major reason behind the move is cost savings as close to 60 percent of Tata Metalik's costs consists of coke which it needs to procure while Tata Steel Long Products has excess coke capacity.
While, as part of key cost optimisation initiatives in FY20, the company initiated coke plant expansion to reduce dependency on purchased coke, that project is yet to be commissioned though work is progressing.
The company has a ‘related party’ sourcing pact with TS Global Procurement Company Pte. Ltd for coal and coke but such transactions are done at arm’s length pricing.
To reduce dependency on coke, Tata Metaliks is also using technology, Pulverized Coal Injection (PCI) in Mini Blast Furnaces leading to replacing high cost coke by coal.
“Your company sourced almost 7580 percent of its coke requirements through a combination of its captive unit and long-term supplies from Tata Steel, thereby helping partially offset input cost volatilities,” Koushik Chatterjee Chairman of the company had said in annual report for FY20.
Tata Metaliks, state-of-the-art manufacturing plant near Kharagpur enjoys strategic locational advantage due to its proximity to iron ore mines in Odisha and Jharkhand, the Haldia port for import of coal and the PI and DIP markets of eastern India.
هذه القصة مأخوذة من طبعة December 2020 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 December 2020 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.
بالفعل مشترك? تسجيل الدخول
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.