Eurobench.com

voda 27 december 2014 15:22

0

Mexico probes steel tube dumping from US, Spain and India

BN Americas reported that Mexico launched an antidumping probe into imports of carbon steel tubing from the US, Spain and India.

The investigation follows a request by Mexican steel tube producers Tubacero and Tubesa which claimed the products were sold at below fair value, harming their sales volumes, with tubes from the three countries representing more than 3% of total imports.

According to a report on the official federal gazette website, the product in question is carbon steel tubing with straight longitudinal or helicoidal seams and with an external diameter greater than 16 inches (406mm), used primarily for oil and gas pipelines but also for structural uses.

The request was accepted by Mexico's economy ministry, which will investigate dumping claims related to imports of the product from the three countries between April 2013 and March 2014.

Imports at below fair value are seen as a key threat to Mexico's steel industry, and a string of antidumping probes have been launched this year, including investigations into hot-rolled steel from France, Germany and China in September and cold-rolled steel sheet from China in April.

Source – BN Americas

voda 27 december 2014 15:23

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Japanese crude steel production at 9,175,000 tons in Nov 2014

According to the Japan Iron & Steel Federation, Japan's crude steel production totaled 9,175,000 tonne in November 2014, down 187,000 tonne or 2.0% from a month ago, averaging 305,800 tons per day, up 1.3%, when it decreased by 1.1% from the same month of a year ago, indicating a YoY decrease for three consecutive months.

In the breakdown by steelmaking furnace, LD converters accounted for 6,914,000 tonne, down 3.1% from a month ago (down 2.6% from the same month of a year ago), while electric arc furnaces made up 2,261,000 tonne, up 1.6% (up 3.9%).

Japan's production of blast furnace pig iron totaled 6,945,000 tonne in November 2014, down 227,000 tons or 3.2 % from a month ago, when it increased by 1.4% from the same month of a year ago, indicating a YoY increase for 4 consecutive months.

The nation's manufacture of HR steel products totaled 8,007,000 tonne in November 2014, down 424,000 tons or 5.0% from a month ago, when it decreased by 2.9% from the same month of a year ago, a YoY decrease for the first time in two months. Of the total, ordinary steel products accounted for 6,304,000 tonne, down 324,000 tons or 4.9% from a month ago, while special steel products made up 1,703,000 tons, down 100,000 tons or 5.6%.

In January-November 2014, Japanese crude steel production totaled 101,667,000 tons, up 0.4% from the same period of 2013.

Source – TEX

voda 28 december 2014 14:38

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Anti dumping probe on cast iron tubes and pipes from India

The European Commission has initiated a probe against the alleged dumping of cast iron tubes and pipes by India in response to a complaint by French company Saint-Gobain.

An EC notification said that "The allegation of dumping from the country concerned India is based on a comparison of the domestic price with the export price at ex-works level of the product under investigation when sold for export to the European Union."

As per the complaint made on November 10th, Saint-Gobain alleged that imports of tubes and pipes of ductile cast iron of Indian origin were causing material injury to the European industry.

The complaint was lodged on behalf of producers that account for over 25% of the total tubes and pipes of ductile cast iron manufactured in the European Union.

Source: Exim News Service

voda 28 december 2014 14:41

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Chinese automobile sales growth rate dips to single digits

China’s automobile sales
We’ve discussed China’s real estate sector in depth in our previous parts. Now let’s analyze the indicators of China’s automobile industry. This sector is the second-largest steel consumer in China. It’s the world’s largest automotive market. Close to 20 million vehicles were sold in China last year, a YoY increase of 14%. Let’s look at the trends in China’s automobile sales.

Sales growth dips
The above chart shows the YoY growth rate in passenger car sales in China. As you can see, the growth rate for China’s automobile sales dipped to single digits. Passenger car sales grew by 4.5% in November on a YoY basis. Passenger car sales grew by an impressive 16% in November 2013.

Troublesome trend
The fall in passenger car sales in China is a negative for the steel industry. This will negatively impact steel demand from the automobile sector. China’s steel industry is already reeling with massive production overcapacity.

Source – Market Realist

voda 28 december 2014 14:42

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Fitch expects lower domestic steel consumption in Russia in 2015

International credit ratings agency Fitch Ratings announced that it expects a further decline of 5% in domestic steel consumption in Russia in 2015 driven by deteriorating economic conditions.

At the same time, Russian steel producers will be able to partly compensate lower domestic sales with higher exports.

Fitch said that it expects further weakness in Russian domestic steel consumption driven by the falling automotive market, lower infrastructure spending and deteriorating conditions in the construction sector.

While the sector outlook is viewed as generally negative, Fitch believes that Russian steel companies are well prepared to withstand domestic demand weakness and worsened conditions on the capital markets. Nonetheless, market conditions are expected to remain challenging in 2015, especially in regards with accessibility to cheap refinancing.

Fitch expects Russian non-integrated steel companies to benefit more from a weak price environment on major raw materials, while integrated steel mills with relatively high production costs for iron ore and coking coal may experience reduced margins in their mining divisions.

According to Fitch, this should encourage integrated steel mills to divest or idle their most inefficient captive raw material subsidiaries to limit profitability impairment.

Source - Visit www.steelorbis.com for more

voda 28 december 2014 14:44

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Disturbing trends in the European steel industry

European Union, the second largest steel consumer after China, has been facing decline in production of steel of 0.8% YoY in November although up by 1.5% MoM in October

When compared to last year, steel production in the EU is up by 2.3% in the first 11 months. This is mainly because of an increase in steel production in the Q1 of the current year. Steel production has been on a falling trajectory since then.

Steel production in Germany was down 1.9% YoY in November. This is a troublesome trend for the EU. Germany is the biggest producer as well as consumer of steel in the 28-nation bloc. The slowdown in German steel production is a negative sign for the European steel industry.

Source - Market Realist

voda 28 december 2014 14:46

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Chinese non-ferrous metal production slows in first 11 months

Xinhua reported that China's total production of 10 major non-ferrous metals grew at a slower pace in the first 11 months of this year.

Combined output grew 6.2% YoY to 39.94 million tonne in the first 11 months, down from 10.5% for the same period of last year and 6.5% for the first 10 months of 2014, the National Development and Reform Commission said in a statement.

Total profit edged up 1.5% YoY during the first 10 months, down from an increase of 2.2% in the first 3 quarters.

The 10 major non-ferrous metals include copper, aluminum, lead, zinc, nickel, stannum, antimony, mercury, magnesium and titanium.

The slowdown came amid indicators of lackluster economic activity. The economy expanded by 7.3% in the third quarter of this year, the slowest pace since the Q1 of 2009.

Source - Xinhua

voda 28 december 2014 14:48

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Global metal recycling giant EMR fined GBP 150k over worker death

A global metal recycling company has been fined £150k for safety failings after a worker was killed at its Kingsbury depot in 2011.

Mr William Ward, 56, from Handsworth, Sheffield, sustained catastrophic crush injuries when part of a 33-tonne metal barge he was dismantling collapsed on top of him.

The incident happened at European Metal Recycling Limited's Kingsbury depot on October 12th 2011.

The recycling giant was jointly sentenced on Friday December 19th after an investigation by the Health and Safety Executive identified serious flaws with the method of work being used to dismantle the barges.

Warwickshire Crown Court heard that Mr Ward was working alongside others to cut and dismantle two large steel barges using oxy-acetylene torches. He had finished cutting through the outer skin of the barge's hull and had moved inside the now unsupported structure to cut some supporting braces when the side collapsed in on him. The married dad-of-two died at the scene.

EMR failed to do enough to protect the workers and ensure that burning contractors on site were competent and working safely, the court heard. European Metal Recycling Limited of Westbrook, Warrington, Cheshire, was fined GBP 150,000 and ordered to pay GBP 80,000 in costs after pleading guilty to breaching Section 3(1) of the Health and Safety at Work etc Act 1974.

Source - www.tamworthherald.co.uk

voda 28 december 2014 14:49

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Vale incorporates two subsidiaries to its iron ore business

Steel Orbis reported that Brazilian mining and iron ire company Vale approved the incorporation of two subsidiaries to its iron ore business.

Mr Luciano Siani Pires, Vale’s investor relations director, said that “According to a Vale filling to Brazil CVM, the nation’s securities regulator, Sociedade de Mineracao Constelacao de Apolo and Vale Mina do Azul are now part of Vale.”

In another document, Vale lists a series of resolutions that were taken in a meeting with shareholders.

It said that “By the majority of the shareholders, the consolidation into Vale of its wholly owned subsidiaries Apolo and VMA, without a capital increase or the issuance of new Vale shares.”

The document said that “With the consolidation of Apolo and VMA into Vale, the latter unconditionally assumes all properties, rights and obligations of Apolo and VMA, of a legal or conventional order, under the terms of current legislation.”

The company said that “The consolidation of the 2 fully owned subsidiaries is part of a process to simplify Vale’s corporate structure. VMA operates in the steel and metallurgy segments, commercializing iron alloys and exploring mineral substances, including ores in general.”

Apolo was Vale’s subsidiary dedicated to explore mineral deposits.

Source - Visit www.steelorbis.com for more

voda 28 december 2014 14:52

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Ukrainian iron ore production falls 0.9pct in Jan-Nov 2014

Steel Orbis reported that in the January to November period of this year, Ukraine's production of iron ore and iron ore concentrate declined by 0.9% YoY to 75.948 million tonne.

In November alone, Ukraine's output of iron ore and iron ore concentrate increased by 0.2% month on month to 7.017 million tonne. In particular, production of iron ore increased by 3.9% to 1.269 million tonne, while iron ore concentrate output went down by 0.6% to 5.748 million tonne, both month-on-month basis.

Source - Visit www.steelorbis.com for more

voda 29 december 2014 13:50

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KIOCL plans to emerge as global leader in iron ore palletisation

PTI reported that KIOCL plans to make the company a global leader in pelletization.

Mr Malay Chatterjee CMD of KIOCL said that "We expect top firms from across the world to send their ore to us for pelletization. Our marketing team has been working on the same. This will be an important revenue stream for KIOCL."

He said that "We closed down our mining operations at Kudremukh. But KIOCL is still a profitable company, as we diversified our business. Today, we are in the business of setting up pelletisation plants. There is a dire need for technological knowhow across the nation for pelletisation. We are helping other firms set up pelletisation plants."

KIOCL had to cease mining operations in Karnataka following the declaration of the National Park in the Western Ghats.

Source – PTI

voda 29 december 2014 13:52

0

2014 year end review - India's Ministry of Steel

India is currently the 4th largest producer of crude steel in the world as against its 8th position in 2003.

India continues to maintain its lead position as the world’s largest producer of Direct Reduced Iron (DRI) or Sponge Iron.

The steel sector contributes nearly 2% of the country’s GDP and employs over 6 lakh people.

The per capita consumption of total finished steel in the country has risen from 51 kg in 2009-10 to about 60 kg in 2013-14.

Production and Consumption of Steel

1. Capacity for crude steel production expanded from about 75 million tonnes per annum in 2009-10 to about 101.02 million tonnes per annum in 2013-14.

2. Crude steel production grew at 7% annually (CAGR) from 65.84 million tonnes in 2009-10 to 81.69 million tonnes in 2013-14.

3. Production for sale of total finished steel (alloy + non-alloy) stood at 87.67 million tonnes during 2013-14, as against 60.62 million tonnes in 2009-10, an average annual (CAGR) growth of 9%.

4. Real consumption of total finished steel (alloy + non-alloy) has grown at a CAGR of 7.2% during the last five years.

5. Domestic real consumption of total finished steel (alloy + non-alloy) was at 74.09 million tonnes in 2013-14 and increased by 0.83% on a YoY basis.

6. Export of total finished steel (alloy + non-alloy) during 2013-14 stood at 5.98 million tonnes while import of total finished steel (alloy + non-alloy) during 2013-14 stood at 5.45 million tonnes.

7. India was a net exporter of total finished steel in 2013-14.

Source – Strategic Research Institute

voda 29 december 2014 13:59

1

ArcelorMittal provides 310,000 tonnes of steel for gas pipeline to Europe

To enable the construction of one of the largest oil and gas pipelines in the world – the Trans Anatolian Natural Gas Pipeline (TANAP) – ArcelorMittal is providing 310,000 tonnes of hot rolled coils from its production site in Bremen, Germany, more than one third of all the hot rolled coils needed for the TANAP project.

It is also the largest order ever placed with ArcelorMittal Europe – Flat Products, by a company in the oil and gas industry.

TANAP is a 2000km natural gas pipeline that will cross Turkey, from the Shah-Deniz field in Azerbaijan to the European border, helping to secure the supply of energy to Europe.

Construction is expected to be complete by 2018, at a total cost of around USD 7 billion. Once complete, the new pipeline will be able to transport more than 16 billion cubic metres of natural gas a year.

Mr Stephane Tondo, chief marketing officer for packaging and energy pipes at ArcelorMittal Europe - Flat Products, said that "We have provided steels for the global oil and gas pipeline industry for more than 30 years. ArcelorMittal has a proven track record in this field ensuring proximity to the customer and continuous technical support - in combination with the high quality products provided by our mill in Bremen."

Mr Dietmar Ringel, CEO of ArcelorMittal Bremen, said that "This is an exciting and challenging project for us. Deliveries will start in 2015 and last for two years. It is the largest single order ever for Bremen - it shows our ability to supply the required high quality products, and to ensure punctual delivery. It also underlines ArcelorMittal`s commitment to Bremen."

Source – Strategic Research Institute

voda 30 december 2014 13:20

0

NMDC to set up iron ore slurry pipeline for Nagarnar steel plant

PTI reported that NMDC plans to set up a 139 kilometre long slurry pipeline to carry iron ore from Bailadila mines for its proposed 3 million tonnes per annum steel plant in Nagarnar, with an estimated cost of INR 800 crore.

Both Bailadila mines and the Nagarnar steel plant are located in Chhattisgarh.

The official said that civil work of the project will start once the necessary permissions are granted by different agencies and will be completed before December 2016, when the steel plant is expected to commence production.

The official said that “In order to reduce dependence on railways, NMDC intends to develop slurry pipeline transportation system from Bailadila to Nagarnar as an alternate mode for transportation of iron ore fines in slurry form, subsequent to its conversion to iron ore concentrate suitable for making pellet feed concentrate.”

Due to safety reasons, the slurry pipeline will be laid besides the National Highways or State Highways or district roads to get the maximum extent feasible.

The Official said that this will enable ease of laying and access for monitoring and maintenance.

Official added the Bailadila sector is served by Kothavalasa-Kirandul (K-K) railway line of East Coast Railways which will not be in a position to evacuate the total produce from the Bailadila sector in the present state. Official further added that “Though there is a proposal for doubling the K-K railway line after which the capacity will go up by another 12 million tonne per annum there will be a wide gap between the existing evacuation capacity in Bailadila sector and quantity of the finished product of 65 MTPA envisaged subsequent to opening of new mines of Dep-13 and Dep-4.”

Source – PTI

voda 30 december 2014 13:21

0

Iron ore shortage to impact TATA Steel profits in current quarter

TATA Steel said that suspension of a blast furnace for over a month at its Jamshedpur facility for want of iron ore impacted profits in the current quarter.

For the current quarter, mining operations in the Naomundi Iron ore mine in Jharkhand was suspended for the entire period and 4 mines in Odisha including the Joda iron ore mine was suspended for a month.

TATA Steel said that “All the above factors have impacted the stability of operations, cost structure and profitability of the company during this quarter.’’

However, following the resumption of iron ore and manganese mining in Odisha on December 15th 2014, the steel operations of the company have been ramped up. TATA Steel expects the Odisha government to take a decision on the renewal applications for the Khondbond iron mine and 3 manganese mines by middle of February 2015. The mining operations in these mines and project for expansion of mining capacity in Khondbond have been suspended since May 2014.

TATA Steel’s operations in Jamshedpur is designed to operate from its iron ore mines in the vicinity. However, the unit was impacted by the shortage arising from the suspension of mining operations in Jharkhand and four mines in Odisha. To ensure continuity of its operations, the company had to procure iron ore from domestic and imported sources for Jamshedpur operations despite severe logistics challenges at the port and the availability of railways capacity.’

Source – PTI

voda 30 december 2014 13:22

0

Goa government renews 12 more iron ore mining leases

Times of India reported that the state government has received INR 125 crore in form of stamp duty from 12 more mining companies for the renewal of mining leases.

Last week directorate of mines and geology had issued order to 12 mining companies to pay stamp duty for the renewal of their mining leases. Out of 12 mining leases who have paid stamp duty, 7 belong to Chowgule and Company Private Limited, 4 belong to V M Salgaocar and Brothers Private Limited and 1 Sesa Goa.

Mr Prasanna Acharya, director of DMG, said that out of 12 mining leases, DMG has issued lease renewal orders for seven mining leases and remaining leases renewal orders will be issued next week.

With 12 more mining leases paying stamp duty, the total number of mining leases renewal will go up to 39 mining leases. So far state government has received stamp duty from 39 mining leases out of which 16 mining lease agreements have been executed between the DMG and mining companies. Earlier, the state government had received 376 crore in the form of stamp duty from 27 mining leases.

The state government has decided to approve around 45 mining leases by January 2015 and the cap on iron ore extraction from each mine will also be decided in the same period. Mining lease deeds signed by the government belong to V M Salgaocar and Brothers Private Limited, 2 belong to Fomento and 1 each belongs to Kunda Gharse mine, G N Agarwal, Geetabala Parulekar, Rajaram Bandekar Private Limited, Chowgule and Company Private Limited, Sesa Goa and Lithoferro.

The recent judgment of Supreme Court had allowed mining of iron ore in Goa with an upper limit of 20 million tonnes per year.

The mining companies are hopeful of starting fresh extraction of iron ore in Goa from October 2015.

Source - Times of India

voda 30 december 2014 13:32

0

ArcelorMittal Zenica to install advance new dust filters at BOF Steel Plant

ArcelorMittal Zenica, the steel producer located in Bosnia and Herzegovina (B&H), announced that the start of a major project to install advanced new dust filters in its basic oxygen furnace (BOF) Steel Plant.

Using “Best Available Techniques”, the BOF secondary de-dusting system is the latest in a series of technical investments aimed at reducing the ecological impact of the plant, which was restarted in 2008 following almost two decades of disuse after the conflict of the 1990s. Work on the new filters is expected to be completed by early 2016.

The BOF Steel Plant project follows the successful completion in November 2013 of a US$8m investment in filters at the site’s blast furnace, and brings the company’s total investments in ecological projects at Zenica to more than US$6m since 2005.

Mr Biju Nair CEO of ArcelorMittal Zenica said that “Today marks another important step towards our goal of building a long-term, sustainable future for steelmaking in this historical industrial city. Reducing our environmental footprint is an essential part of this journey. We are once again demonstrating our commitment to continued investment in the latest and best technology that will make a real difference to our city.”

When fully operational, the BOF secondary de-dusting system will meet all relevant B&H and EU standards and eliminate visible ‘red dust’ emissions from the plant. More than 95% of fumes from production operations will be captured and cleaned in the bag filter, which will result with dust emissions below 10 mg/Nm3.

Source – Strategic Research Institute

voda 30 december 2014 21:30

0

Flop in 2014, top in 2015? (5)
door Jurry Brand

AMSTERDAM -
DFT zet de grootste dalers in de AEX en Midkap op een rij. Worden de afgestraften van dit jaar de hoogvliegers van 2015? In deze aflevering: ArcelorMittal.

•Bedrijf: ArcelorMittal
•Genoteerd in: AEX
•Daling dit jaar (t/m 16 december 2014): -32,3%
•Advies analisten: 27 kopen, 11 houden, 13 verkopen

ArcelorMittal figureerde begin dit jaar op veel favorietenlijstjes van analisten. Want de grootste staalmaker ter wereld zou toch moeten gaan profiteren van de aantrekkende wereldeconomie? De dalende ijzerertsprijs zorgde echter voor een teleurstellend beursjaar.

Eigen mijnen

IJzererts is samen met cokeskolen de grondstof om staal te maken. De prijs van ijzererts stond begin dit jaar nog op zo'n $135 per ton en is sindsdien zowat gehalveerd.

Voor ArcelorMittal heeft de ontwikkeling van de ijzerertsprijs twee betekenissen. Aan de ene kant wordt het voor het bedrijf goedkoper om zijn grondstof in te kopen op de markt. Maar ArcelorMittal heeft zelf ook mijnen, en die ijzererts wordt voor een deel op de wereldmarkt verkocht. Voor die erts vangt ArcelorMittal dus minder bij een lagere prijs.

Overcapaciteit

De dalende prijzen noopten de staalreus begin augustus om de verwachtingen voor dit jaar los te laten. ArcelorMittal rekende eerder op een bedrijfsresultaat (ebitda) van $8 miljard, maar ging daarbij uit van een ijzerertsprijs van gemiddeld $120 per ton. Inmiddels rekent het bedrijf op gemiddeld $105 per ton en een ebitda van $7 miljard over 2014.

Zorgen over de lagere ijzerertsprijs drukten de beurskoers, zeker omdat er voorlopig geen einde lijkt te komen aan de overcapaciteit in ijzerertsproductie.

Laagste punt

Maar er zijn ook zorgen over Arcelor's eindproduct: staal. Door minder vraag uit bijvoorbeeld China en de wat tegenvallende ontwikkelingen in de wereldeconomie staat er ook druk op de staalprijzen.

Dat alles zorgde ervoor dat de koers medio december terugzakte tot het laagste punt in anderhalf jaar tijd. Ook het aantal verkoopadviezen nam de laatste maanden toe.

Favoriet

Toch staat ArcelorMittal op het lijstje met 'top picks' van analist Andrew Lane van Morningstar. Hij volgt achttien aandelen in de staal- en aluminiumproductie. "De mijndivisie zal het moeilijk hebben", denkt Lane.

"Maar de lagere ijzerertsprijzen zijn profijtelijk voor de staalproductie, want iets meer dan de helft van ArcelorMittal's erts gaat naar eigen fabrieken. Ik denk dat de markt dat onvoldoende op waarde schat."

Al erkent Lane wel dat de marktomstandigheden moeilijk blijven. "Wij denken dat de prijs van ijzererts zo rond de $70 per ton blijft hangen tot het eind van dit decennium. Bovendien verwachten we dat de Chinese staalproductie al dit jaar zijn piek heeft laten zien en alleen verder zal afnemen."

Verbetering in Europa

De Morningstar-analist vervolgt: "2015 kan dus nog steeds een 'uitdagend' jaar worden voor ArcelorMittal. Het aandeel springt waarschijnlijk niet naar de 'fair value' die wij hebben berekend, die rond de $19 per aandeel ligt."

Maar tegenover weinig bemoedigende marktomstandigheden elders staat een lichte verbetering voor de Europese activiteiten, denkt Lane. In het derde kwartaal wist ArcelorMittal het bedrijfsresultaat in Europa al flink op te krikken.

De vraag neemt toe, en daardoor kan ArcelorMittal zijn productiecapaciteit in Europa beter benutten. "Staalfabrieken hebben vrij hoge vaste kosten. Als de vraag omhoog gaat, kun je die vaste kosten dus over meer productie uitsmeren en stijgen de marges."

Dit is de vijfde aflevering in een reeks van zes. Andere bedrijven in deze serie zijn BAM, Brunel, Fugro en Imtech en SBM Offshore.

www.telegraaf.nl/premium/dft/nieuws_d...

voda 31 december 2014 13:22

1

De laatste set nieuwsberichten voor dit jaar...

TATA Steel MD sees a challenging future for Indian steel industry in 2015

Business Line reported that TATA Steel expects a clear and stable policy on renewal of mining leases and forest clearances to drive growth in the steel industry. Mr TV Narendran MD of TATA Steel, India and South-East Asia, said that the year gone by was challenging, with the industry facing regulatory issues and sluggish demand from major consuming sectors such as infrastructure and automobiles.

Mr Narendran said that “We are hopeful that the government will address the concerns of the steel industry in the New Year. The company’s production was impacted by mining lease renewal issues, which led to suspension of mining operations. TATA Steel imported iron ore for the first time. It is ironical that, as a country, we have to import iron ore despite having some of the best reserves in the world.”

He said that the scope is huge, with the Working Group on Steel for the 12th Plan projecting a crude steel capacity of 140 million tonnes by 2016-17.

While the emerging scenario looks positive, he said steelmakers in India face a challenging future, as they may not be able to add capacity to keep pace with the rising demand.

He added that the need of the hour is to steer new investments with appropriate policy support to ensure that production matches growth in consumption.

He further added that the first phase of the Kalinganagar Project of three million tonnes a year capacity will be progressively commissioned from early 2015.

Source - Business Line

voda 31 december 2014 13:23

1

Spike in imports hurting India as steel demand remains sluggish - Mr Sheshagiri Rao

Mr Seshagiri Rao MVS, joint MD, JSW Steel, spoke to Business Line on the way ahead for the industry.

Excerpts

Q - Has steel demand revived?

A - There are positive sentiments and expectations that things will look brighter in the future, but on the ground, the problems remain the same. Steel demand is sluggish. A major worrying factor is the external economy, which is not doing well. The surplus steel production in countries such as China and South Korea is being dumped on India. Of late, we are seeing steel imports from Russia after the ruble crisis. These countries, which are not major steel consuming countries, rely on exports.

Q - Is there a sudden spike in imports?

A - Steel imports in October and November have gone up by 136% to nine lakh tonnes. The trend is continuing in December as Russia came into the picture after ruble depreciated to 62 against a dollar from 32. Ruble had dipped up to 80, but in the last few days, it stabilised at about 62. So the depreciation is 100% in the last few days. The sharp ruble depreciation is making exports of steel from that country lucrative. Russia is a major export dependent economy and with the steep fall in crude oil prices, they are trying to export whatever they can. It is really a matter of concern.

Q - Has the ‘Make in India’ campaign made any impact on the steel industry?

A - India has the potential to make several products which are being imported today. We are capable of producing these items and reduce our import bills. We can also make many products for the global market. Make in India will become a success only if the policies are calibrated to take away the stresses the industry is facing.

Q - How have the steel exports been?

A - Steel exports have fallen by 5.34% in the first eight months of this fiscal whereas imports have gone up by 49% in the same period. The numbers are more stalking if you look at 136% increase in October and November. Whatever little domestic steel demand is there, it is being catered to by way of dumping through imports.

Q - Why did JSW Steel return land in West Bengal?

A - The project got delayed due to factors external to us. We lost the coal mine in West Bengal. We thought we would be able to get iron ore from Odisha and Chhattisgarh, but it looks difficult now. State Governments want to use iron ore reserves to boost investment in their own State. In Odisha, they are saying 50% of both iron ore fines and lumps should be sold locally. The restriction is applied on each mine in the State. So unless each mine sells 50% of their production within the state, they will not be allowed to sell it outside. Whether it is legal or illegal, we can debate forever, but the fact is that there are restrictions in each State. We have put the West Bengal project on hold. At the same time, we decided to return the land acquired from private land owners through the Government of West Bengal because the acquisition also happened through them.

Q - Will JSW Steel bid for coal mines being auctioned?

A - Yes, JSW Energy will bid for thermal, while JSW Steel will pitch for coking coal. Steel and cement companies have to place forward bids, while the reverse bidding is open for independent power producers. In the forward bidding, price of coal or iron ore will be market-driven as the Government has no control on the selling price of the end product. In the case of power units, the selling price is controlled by the Government based on the cost of production. In this way, they have clearly identified mines and its end use.

Source – Business Line

Vertraagd	10 mrt 2025 13:22
Koers	29,520
Verschil	-0,960 (-3,15%)
Hoog	30,770
Laag	29,510
Volume	1.496.807
Volume gemiddeld	2.986.909
Volume gisteren	4.319.928

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