SME Long Product Makers To Play Key Role By FY31
Steel Insights|January 2018

As the share of the SMEs is predominant in long products, it is expected that they will be able to enhance their capacity utilization by a significant extent. In wire rods, there will be increasing demand for the high carbon variety. The demand for electrode quality, tyre bead quality and cold heading quality would also be substantial. It is expected that the quantity of imports in these varieties would come down due to higher availability from the domestic sources. The scenario for long products would be influenced by the trend towards special grade wire rods for industrial use, rebars with higher Fe content, structurals with light-gauge high-performance properties and rails with head hardening properties and stainless steel rebars. However, the major challenge being faced by the SMEs pertaining to long products is the conformation to the Mandatory Quality Control Order issued by the Ministry of Steel, Sushim Banerjee, Director General, Institute for Steel Development & Growth (INSDAG)

Tamajit Pain
SME Long Product Makers To Play Key Role By FY31

What is the total share of steel long products in the entire 100-odd million tons of steel produced in India? What is the production level of long products by the integrated steel players and secondary players in this basket?

India has produced 98 million tons of crude steel in FY17. The finished steel production in India during the year was 101.8 mt. Share of long products in finished steel production was 43 percent.

Out of the total production 44 mt of long products in FY17, the share of the integrated steel players was 32 percent and the balance 68 percent was from other players in the small and medium enterprises (SME) sector.

India has a target of 300 mt by 2030. What would be the demand for long products in that kitty? Which segments are the largest long consumers and which segments will drive growth, going forward?

National Steel Policy, 2017 has indicated a capacity target of 300 mt of crude steel by India by 2030-31. The finished steel demand by FY31 has been estimated to be at 230 mt, where long products’ share has been projected at around 55 percent.

Since the maximum components of long products (reinforcement bars, wire rods, structurals, and railway products) are used in the construction and infrastructure sectors, the health and development of this critical segment would be the primary driver of growth of long products in India. This is the current scenario and would continue to be the same in the coming years too. The construction segment comprises of real estate (residential construction), industrial complexes, urban area development (flyovers, bridges, water and sewerage transportation, etc), smart city construction etc.

Esta historia es de la edición January 2018 de Steel Insights.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición January 2018 de Steel Insights.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE STEEL INSIGHTSVer todo
Steel's Net Zero mission
Steel Insights

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.

time-read
10+ minutos  |
November 2021
Fuel Price Hike, Supply Chain Disruption Hurt Festive Sales
Steel Insights

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.

time-read
5 minutos  |
November 2021
Seaborne coking coal offers remain range-bound
Steel Insights

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.

time-read
3 minutos  |
November 2021
Global crude steel output down 8% in September
Steel Insights

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.

time-read
1 min  |
November 2021
MOIL embarks on expansion projects
Steel Insights

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

time-read
5 minutos  |
November 2021
Iron ore handled by major ports down 17% in H1
Steel Insights

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.

time-read
1 min  |
November 2021
Shrinking China output to boost India exports
Steel Insights

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

time-read
4 minutos  |
November 2021
Indian Railways' iron-ore handling up 25% in H1
Steel Insights

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.

time-read
1 min  |
November 2021
September crude steel production up 7.2% y-o-y
Steel Insights

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.

time-read
2 minutos  |
November 2021
“Five enablers: way forward to sustainable cleaner steel”
Steel Insights

“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.

time-read
10+ minutos  |
November 2021