Page 3 - Steel Industry

Don't see further price correction, says JSW Steel's Seshagiri Rao

Steel prices appear to have reached their bottom and are likely to go up from their current levels if supply adjustments globally are any indication in the sector, a top JSW Steel official said on Sunday. Steel prices fell around 40 per cent to Rs 55,000-57,000 a tonne in the domestic market. The prices had started falling from April-end. I don't foresee further downside in steel prices. Globally, there is a production cut of 62 million tonne. Moreover, 29 per cent of Chinese steel capacity is under bankruptcy. Global supply adjustments and higher Indian steel consumption will help keep prices firm, JSW Joint Managing Director and Group CFO Seshagiri Rao told PTI in an interview. Compared to 2021-22, domestic steel demand will be higher by nine million tonne to 115 million tonne by March this financial year, he said. The World Steel Association forecasts that demand for the metal will contract by 2.3 per cent in 2022 to reach 1,796.7 million tonne, after an increase by 2.8 per cen

Steel prices fall 40% in last six months to Rs 57,000 per tonne: SteelMint

Steel prices fell about 40 per cent to Rs 57,000 a tonne in the domestic market over the last six months on subdued export orders in the wake of the 15 per cent export levy, according to SteelMint. In early 2022, the prices of hot rolled coil (HRC) started showing an upward trend. It had become a matter of concern for the user industries as movements in steel prices have a direct impact on industries like real estate and housing, infrastructure and construction, automobile and consumer goods. The steel prices in the domestic market peaked at Rs 78,800 per tonne in April. After 18 per cent GST levy, the price was about Rs 93,000 per tonne, the research firm said. The prices started to fall from April-end and came down to Rs 60,200 per tonne towards the end of June, according to SteelMint data. It continued to fall in July and August and came down to Rs 57,000 per tonne by mid-September. SteelMint cited "government tax on steel products, subdued overseas demand and high inflation an

Global steel demand downgraded, to drop 2.3% in 2022: WorldSteel

A global recovery in steel demand next year is still expected, mainly due to a rise in infrastructure spending, but the growth will be 1% instead of 2.2% as forecast earlier this year, the WSA said

Britain in talks with British Steel and Tata to secure industry's future

Britain said on Monday it was in talks with steel makers, including British Steel, owned by China's Jingye Group, and India's Tata to help secure the industry's long-term future

Steel demand needs 9% CAGR to meet 160 kg/capita consumption target: Icra

The domestic steel demand needs to grow at a compound annual growth rate (CAGR) of 9 per cent over the next decade to meet 160 kg per capita steel consumption target envisaged in the National Steel Policy (NSP). Launched in 2017, NSP also aims to ramp up the country's crude steel production to 300 million tonne (MT) by 2030-31. Jayanta Roy, Senior Vice-President & Group Head, Corporate Sector Ratings, Icra said, India's current per capita steel demand of 76 kg is not only significantly below the world average of 233 kg per capita, but also remains the lowest among Brazil, Russia, India, China and South Africa (BRICS) nations. To take the country's steel consumption close to NSP target of 160 kg per capita in FY2031, the domestic steel demand would need to grow at a CAGR of 9 per cent in the next decade, the expert said in an Icra report on Wednesday. He further noted, "This is almost double the growth rate achieved in the decade gone by. While achieving this milestone will be ...

Govt scraps sale of SAIL's Bhadravathi plant on low bidder interest

The government on Wednesday scrapped the privatisation of SAIL's Bhadravathi steel plant due to insufficient bidder interest. The Expression of Interest (EoI) for selling SAIL's 100 per cent stake in Visvesvaraya Iron and Steel Plant (VISP), Bhadravathi in Karnataka, was invited on July 2019. The Department of Investment and Public Asset Management (DIPAM) said multiple EoIs had been received and qualified bidders had conducted due diligence. "However, due to insufficient bidder interest in proceeding further with the transaction, Government of India, with the approval of Alternative Mechanism (Empowered Group of Ministers) has decided to annul the EoI and thereby terminating the present transaction," DIPAM said.

SAIL records turnover of over Rs 1 trn in FY22, posts 50% rise

The increase in turnover coupled with improved operational performance, helped the company achieve its highest-ever numbers in terms of profitability: Chairperson

Followed due process to get fair valuation for amalgamation: Tata Steel CFO

In a Q&A, Koushik Chatterjee, says the decision to merge seven group firms is a priority for Tata Steel and the entities involved. He adds that rupee depreciation will influence steel prices

Govt actively studying duties levied on steel exports: Jyotiraditya Scindia

The government is actively studying the issue of export duty which was imposed on certain grades of steel in May this year. The matter is being discussed at the highest level, Union steel minister Jyotiraditya Scindia told reporters at the National Management Convention organised by the All India Management Association (AIMA) here. "This is something which is under active study by my department as well as the government. We are certainly discussing this at the highest level. When a decision is taken on this you shall be be informed," he said in reply to a question whether government is considering removing export duty on iron ore and steel intermediaries. On May 21, the government hiked the duty on exports of iron ore by up to 50 per cent and for a few steel intermediaries to 15 per cent. It also waived customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry. The move was aimed at increasing the availability of these raw ..

Govt receives 75 applications under PLI scheme for specialty steel

The government has received around 75 applications from domestic players under the PLI Scheme for specialty steel, according to an official. Applicants include all major steel players like Tata Steel, JSW Steel, JSPL, AMNS India and SAIL, a senior steel ministry official said. "A significant number of applications have been received. There around 75 applications," the official said. However, no proposal has been received from any foreign entity, according to the official. After shortlisting the proposals, the government will come out with a final list which would take around 35-40 days, the official said. The government had set the final deadline on September 15 after several extensions for receiving proposals from manufacturers for benefits under the PLI (Production-Linked Incentive) scheme for speciality steel. The Union Cabinet in July last year approved a Rs 6,322-crore PLI scheme to boost the production of speciality steel in India. The move is expected to attract an additi

Steel prices in India to remain under pressure over near future: Icra

Icra on Friday said it expects steel prices to remain under pressure in the country over the near future as the prices in the domestic market cannot be cushioned from the global trends. The rating agency also expects the steel demand in the domestic market to grow at 7-8 per cent in the current financial year, making the country the fastest-growing large steel markets globally this year. "We expect domestic steel prices to remain under pressure over the near term, since domestic steel prices cannot be insulated from the trends emerging in global steel markets," Icra Senior Vice-President & Group Head, Corporate Sector Jayanta Roy said. Domestic steel mills face a tough time ahead as the external environment is becoming more and more challenging in key global consumption markets. The steel demand in China, which accounted for 52 per cent of the global demand in 2021, is witnessing a decline as the economy prepares for the combined impact of the property bubble, strict zero Covid ...

Property crisis threatens to drag down a third of China's steel industry

Almost a third of China's steel mills could go into bankruptcy in a squeeze that's likely to last five years

Odisha to set up 12 steel plants with capacity of 60 mt per annum: Minister

Three new steel facilities will be set up in Sundargarh district, two in Jajpur district, and one each in Angul, Kendrapada, Dhenkanal, Keonjhar, and Jagatsinghpur districts.

Tata Steel Q1FY23 result: How did the company perform in last four quarters

Tata Steel to announce Q1FY23 results on Monday; company plans Rs 12,000 cr investment in India and Europe

Growth capex to stay despite slow demand; JSW hopes for a rebound in Q3

A combination of factors made the operating environment in Q1 challenging

India to double steel production in eight years to 240 MT: Scindia

Stating that steel plays a major role in the country's economy, newly-appointed Union Steel Minister Jyotiraditya Scindia on Friday said India's production will double to 240 MTs in coming years.

JSW Steel consolidated output rises 16% to 5.88 million tonnes in Apr-Jun

On a quarter-on-quarter (q-o-q) basis, the production was 2 per cent down from 5.98 MT in January-March 2022

Expect govt to withdraw duties on steel when inflation eases: Sajjan Jindal

Terming duties imposed on steel products a "short-term headwind", JSW Group CMD Sajjan Jindal said he is hopeful of the government withdrawing the levies once inflation moderates. The duties were imposed last month with the objective of controlling inflation, the industrialist said. Jindal's statement comes days after he along with other top industry leaders met Finance Minister Nirmala Sitharaman in her office. In a tweet on June 16, office of the Finance Minister, without sharing the details of the meeting had said, "Delegation of Indian Steel Association @steel_indian, including Shri @MPNaveenJindal - Chairman JSPL, Shri @sajjanjindal - Chairman JSW, Smt Soma Mondal - Chairman @SAILsteel & other senior members of the industry, calls on Smt @nsitharaman." "We view the export duties imposed on steel in May 2022 as a short-term headwind, since they have been imposed with the objective of controlling inflation. We continue to engage with the government on this matter and believe ...

Thyssenkrupp, Tata Steel lose fight against EU veto of joint venture

The companies had sought to tackle over-capacity and other challenges in the steel industry via the joint venture but the European Commission said the deal could result in price hikes.

Global steel industry could face $518 billion stranded asset risk: Report

Much of this stranded asset risk is concentrated in Asia: 80 per cent of the BOF steelmaking capacity under development globally is planned in China and India