2. BACKGROUND
• INDIA is ranked 4th in iron and steel production in the
world.
• Production grew at 8% annually from 46.46 mtpa in 200506 to 73.79 mtpa in 2011-12
• INDIA remained net importer of steel.
• The performance of ministry of steel for FY 2011-12
according to results framework document given by high
power committee is Excellent.
3. HISTORY
• 27TH august 1907 TISCO JEMSHEDPUR
• IISCO 1918 Burnpur; production from 1922
• Public sector:
1.
2.
3.
4.
5.
Rouricela, Orissa
Bhilai, MP
Durgapur, WB
Bokaro, Bihar
Vizag, AP
4. CAPACITY ADDITION
• Capacity of crude steel production expanded from 51.17
mtpa in 2005-06 to 89.29 mtpa in 2011-12 increased by
nearly 75%.
• MoU between Ministry of steel, GOVT of India and
Ministry of Mines, Islamic Republic of Afghanistan.
• SAIL lead consortium AFISCO won the mining
exploration rights at Hajigak project as “preference
bidder”.(expected reserves-1.28 billion tons of high grade
iron ore)
5. • MoU between USM and Kobe Steel Limited for ITmK3
technology: JVC- SAIL KOBE IRON INDIA Pvt ltd.
Instalation of 0.5 mtpa ITmK3 technology based plant at
Durgapur.
• JVC “International Coal Venture Pvt ltd” has been set up
to acquisition of coal mines overseas with an equity of Rs.
3500 crs and leverage of Rs 7000 crs as debt
6.
7. PRICE
• Indian steel price rising despite of fall in demand growth.
• Reasons for growing price:
SC banned three major Iron ore production districts in
Karnataka
2. The inventory in these mines was auctioned which
increased the cost price by 25%.
3. Rupee depreciation of almost 10% against dollar since
beginning of September 2013.
1.
8. RUPEE DEPRECIATION
• As a depreciating rupee benefits exporters, steel
companies are planning to avail of the situation by tapping
the foreign markets, where demand is raising.
• Coaking coal is one of the major raw material used by the
domestic steel industry which contributes significantly
towards the cost of production of the alloy.
9. GLOBAL DEMAND SCENARIO
• World Steel Association(WSA) announced that the world
steel demand achieved a growth of 5.6% in 2011.
• Japans demand growth decreased by 2.2% in 2013 due
to the impact of exchange rate appreciation.
• The emerging economies demand grew by 45% from
2007 to 2013.
• India is expected to increase its steel consumption by
6.9% in 2012 and 9.4% in 2013.
10. INFRASTRUCTURE SPENT TO BOOST
THE GROWTH OVER THE LONG
TERM ITmK3 technology
• MoU for
• Delhi-Mumbai Industrial corridor project work not only
creating a good infrastructure but also bringing in huge
demand in domestic market.
• To encourage benefit of Iron ore firms in the country, basic
custom duty on the plants and equipment required for
initial setting up or substitution expansion of iron ore has
reduced from 7.5% to 2.5% W.E.F 17 march 2012.
• MOS with aim to highlight the gap in R&D and steel
technology 8 R&D projects approved in 2012, So far total
73 projects.
11. Election Budget Impact
• The welcome decision in extension of full exemption from
export duty for galvanized steel sheets.
• This enables the industry to get more competitive in
global markets.
• Companies are demanding for nil import duties on iron
ore.
• The priority accorded to infrastructure in the 12th Plan,
and "the expectation that the private sector would
contribute half of the envisaged investment of Rs 50 lakh
crores, the Budget should also look at introducing special
incentives to encourage capital goods industries".
12. CONCLUSION
• According
to the SBI securities, the gap between
domestic price and landed price of Imported steel is
currently $ 50-100 a tone .
We believe there is still room for upward price movement
as the gap between domestic price and landed price of
imported steel still exists.
13. • Steel projects, including those planned
by ArcelorMittal, Posco and many others, worth around
Rs 3 lakh crore could not take off because of various
issues like land acquisition, delay in environmental
clearances, among others. So process should be fasten
to get advantage of the situation.