Manufacturing activities is witnessing strong rebound, and the service sector is gradually stabilising.
The recovery in automotive sector, notably in two wheelers and passenger vehicle, is better than anticipated.
Cement demand in terms of housing is showing green shoots. Cheap housing loans and the need for space is also spurring some demand. Infrastructure projects are also coming back into stream.
From June onwards, steel consumption has started reviving and as per latest data for October available with Joint Plant Committee, finished steel production in the country has crossed previous year’s level by 1 percent while steel consumption continues to be bit under pressure and has de-grown by 2 percent on year.
From August onwards, fall in steel consumption has been arrested and degrowth has started coming down, said Ranjan Bandhyopadhyay, executive secretary, Joint Plant Committee during a webinar organised by mjunction Services.
JPC has concluded a study on end-use of steel in association with rating agency CRISIL taking data from most of the stakeholders in the steel industry.
The sector is still not out of the woods though as till October, crude steel output is down by 22 percent while finished steel is lower by 18 percent from previous year’s level, he pointed out.
Steel consumption as a whole is down by 25 percent during April-October period.
The country will end up consuming 85- 86 million tons of steel by March, down from 100 mt consumed in FY20, Bandhyopadhyay pointed out. Rohit Sadaka, director, India Ratings and Research, said during the webinar that there could be 18-20 percent lower steel consumption in FY21 as compared to FY20 due to lower Gross Fixed Capital Formation to the extent of 26-27 percent.
Real estate and manufacturing are the two major components of GFCF and both these sectors are not witnessing any kind of growth pushing down overall percentage.
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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 November 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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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.
