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)
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.
This story is from the January 2018 edition of Steel Insights.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the January 2018 edition of Steel Insights.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
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.
