Steel industry


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Steel industry

  2. 2. Introduction of steel: • Steel was first made by cementation, a process of heating bars of iron with charcoal in a closed furnace • Steel is an alloy of iron, carbon, and small proportions of other elements. • Iron contains impurities in the form of silicon, phosphorus, sulfur, and manganese; steelmaking involves the removal of these impurities, known as slag, and the addition of desirable alloying elements • Steel was known in antiquity, and may have been produced by managing bloomeries, or iron-smelting facilities, in which the bloom contained carbon • In 1866 by Sir William Siemens, uses iron ore and pig iron to produce steel • Steel is classified by its carbon content: High carbon steel, Low or medium carbon steel, Alloy steel, Aluminum steel, Chromium steel, Nickel steel, Nickel chromium steel and Stainless steel
  3. 3. Steel Industry in India: • India is the largest producer of sponge iron and fourth largest producer of steel in the world • India registered a 5.7% growth in crude steel production in 2011 • Steel-making company based in New Delhi, India and one of the top steel makers in World. With a turnover of 486.81 billion (US$7.4 billion) • It is a public sector undertaking which trades publicly in the market is largely owned by Government of India and acts like an operating company • Given the uncertainty in the global economy, export growth seen in the recent months may not be sustainable • Steel exports increased by 12.7% in April-June period of 2013 mainly because of a depreciating rupee and export incentives • With a capacity of about 15 million tones estimated to come up in FY'14, which is equal to almost 16% of the domestic capacity at the end of FY'13 • India, growth in apparent steel use is expected to grow by 6.9% in 2012 and by 9.4% in 2013
  4. 4. Export contribution of Steel: • In India steel exports began only in the year 1964 • Iron and Steel are freely exportable • Duty Entitlement Passbook Scheme (DEPB) was introduced to facilitate exports • For the first time, steel exports from India have crossed the million tones mark in three months in 2013 • Tata Steel exported 240,000 tones of steel in 2012-13, more than three times of 70,000 tones exported in the previous year. • SAIL, exports of steel materials stood at 368,000 tones in the just concluded fiscal year, up over 11% from the preceding year’s 334,000 tones • At JSW Steel Ltd, the norm is to export 20% of production had an output of 7.815 mt in 2011-12. • Since all steel mills are expanding capacity, exports are expected to rise.
  5. 5. Indian steel industry Exports in million ton 9 8.2 8 6.7 7 6 5 4 4.04 3 2 1 0 2009-10 2010-11 2011-12
  6. 6. Current Scenario: • The World Steel Association (WSA) has predicted a growth of 5% consumption of steel in India • The domestic steel demand is expected around 5.5% • Domestic steel companies are increasingly targeting a substantial chunk of their production for exports • While the rupee fall and slow demand at home is acting as an immediate trigger, a more compelling reason for exports could be to find alternative markets • India is expected to be the world's second largest producer of steel by 2014 • The demand for steel is expected to rise 7% by 2014
  7. 7. Market size: • India's steel production increased by 0.9% to 6.45 million ton (mt) in June 2013, as against 6.39 mt in June 2012 • India fared better than rest of the world in terms of average output for the first six months of 2013 • India’s steel production grew by 2.5% to 39.63 mt in the six month period January-June 2013 as against 38.68 mt in the same period in 2012. • During the same period, world crude steel production was 789.8 mt, recording an increase of 2%
  8. 8. Category of steel: • Carbon Steels- contain trace amounts of alloying elements and account for 90% of total steel production – Low Carbon Steels/Mild Steels contain up to 0.3% carbon – Medium Carbon Steels contain 0.3 – 0.6% carbon – High Carbon Steels contain more than 0.6% carbon • Alloy Steels- contain alloying elements (e.g. manganese, silicon, nickel, titanium, copper, chromium and aluminum) • Stainless Steels- contain between 10-20% chromium • Tool Steels- contain tungsten, molybdenum, cobalt and vanadium in varying quantities
  9. 9. Major steel producing countries 2012: • China (716.5mt) • Japan (107.2mt) • United States (88.7mt) • India (77.6mt) • Russia (70.4mt) Major Exporter of steel according to 2012: • China (54.8mt) • European Union (47.1mt) • Japan (41.5mt) • Russia (26.7mt) • India 17th place (8.2mt)
  10. 10. Major Importer of steel according to 2012: • • • • • United States (31.5mt) European Union (29.5mt) Germany (22.9mt) South Korea (20.4mt) India 13th place (9.3mt) List of Top Steel Companies in India: • • • • • TATA steel (20%) - Mumbai SAIL (10%)- New Delhi JSW steel (8%)- Mumbai Visa steel (5%)- Jaipur Bhushan steel (3%)- New Delhi
  11. 11. Market share of steel by countries in 2012 50 45.5 45 40 35 30 23.6 25 20 15 10 7 5.6 5 4.7 4.5 4.5 2.3 2.3 0 China Japan US India Russia South Ukraine Brazil Korea ROW
  12. 12. Ministry of Steel: • The Ministry of Steel is under the overall charge of the Hon'ble Minister of Steel • This has direct control and supervision on the country’s total steel producing companies in India • Mr. Beni Prasad Verma serves as the Minister of Steel Industry • All the exports and import transactions are controlled by the ministry • The ministry holds the responsibility for framing policies and regulation norms with regard to the sector in India • The ministry effectively contributes its service through administration and designing financial propaganda supporting steel and iron ore production inside the country
  13. 13. Incentives to the steel industry: • In union budget 2012-13 as well as in 12th five year plan draft, government had took lot of steps towards the infrastructure sector • In FY13 budget custom duty has reduced to 2.5% from 7.5% on plant and machinery • Other steps taken by the government are 100% FDI allowed through the automatic route in the sector • Large infrastructure projects in Public-Private partnership mode are being formed • Basic Custom Duty (BCD) on stainless steel flat products may be increased from the existing level of 5% to 15%
  14. 14. Ministry of Steel’s promotion of R&D: Ministry of Steel is encouraging Research and Development activities both in public and private steel sectors by providing financial assistance under the following two schemes: • R&D with Steel Development Fund (SDF) Year-wise release of SDF fund during the last 5 years is given below: 2007-08 10.12 cr 2008-09 7.27 cr 2009-10 11.26 cr 2010-11 20.65 cr 2011-12 3.01 cr 2012-13 (up to Sep’2012) 7.37 cr
  15. 15. R&D with Government Budgetary Support (GBS): Year-wise release of fund is as follows: 2009-10 4.14 cr 2010-11 27.05 cr 2011-12 9.63 cr 2012-13 (up to Sep’2012) 11.97 cr
  16. 16. Packing methods of steel: • • • • Packing involves color coding of each bar to client’s specification Each bar bears a sticker detailing grade seal of the inspector Non metallic spacer rings or collars placed on each bar Steel is wrapped with HDPE foam/film before being inserted into cartons and boxes • Each bar/rod is wrapped in multiple layers and packed in wooden boxes
  17. 17. Distribution process:
  18. 18. THANK YOU