The Competition Commission of India (CCI) has advised against promoting the nation's export of iron ore since it is not a renewable resource.

Even though China is one of the world's top producers of iron ore, which has helped the East Asian nation become the world's top producer of steel, it was suggested that India should instead take up the Chinese tactic of importing iron ore.

"We can increase the domestic supply by discouraging such exports of (iron ore). A new Market Study on Mining Industry released by CCI on Monday stated, "It is crucial to keep in mind that excessive consumption of iron ore today might result in its depletion, affecting the resources available to future generations." 

India should prioritise exporting higher value-added products like finished steel as it moves towards Aatmanirbhar Bharat, according to a study report titled "Dynamics of competition in the mining sector in India with a focus on iron ore."

The study suggested that India should use the most advanced technologies to upgrade low-grade iron ore to higher grades through beneficiation processes in order to address the issue of the accumulation of low-grade iron ore after iron ore exports are discouraged.

The study made clear that in order to control the flow of "national wealth" abroad, the government has been periodically altering the structure of export duties for the iron ore industry. 

The export duty levied on low-grade iron ore, pellets, and specific steel products—including pig iron—was eliminated by the Centre on November 19, 2022. 

However, a reduced export duty of 30% is applicable to high-grade lumps and fines that contain more than 58% iron. "Strict control over its over exploitation is necessary, considering that iron ore is a non-renewable national resource and a vital raw material in various industries," the CCI study stated.

India produces enough iron ore to meet its own needs and contributes 7% of the world's total production, making it the fourth largest producer in the world, according to the study. 

In comparison to imports, the value of iron ore exports has increased significantly in recent years. After 2015, India's export competitiveness in iron ore has increased when measured by the Revealed Comparative Advantage Index, particularly for value-added products like pellets.
 

Even though Chinese steel prices slightly recovered in the second half of 2023, global steel prices will probably stay low in 2024.

According to research firm BMI, a division of Fitch Solutions, low prices will keep a check on global average prices, particularly in significant markets outside of China.

In its December Resources and Energy quarterly report, the Australian Office of the Chief Economist stated, "Global steel demand remains weak, driven by lower demand from manufacturing and construction in developed economies and ongoing weakness in China's property sector."

The expansion of economies in developed nations may be impacted by tight financial conditions and rising inflation. According to BMI, the prolonged conflict in Ukraine may further harm the European Union's economic prospects and consequently have an impact on steel prices and demand. 

In order to prepare for a possible price improvement in the upcoming months, BMI said, "We have revised downwardly our 2024 global average steel price forecast to $740/tonne from $780/tonne previously. We expect to start the year at a lower base level than we previously expected."

The economic and financial analysis division of the Dutch multinational financial services company ING, ING Think, reports that new data from the China Iron and Steel Association (CISA) indicates that major Chinese steel mills' steel inventories increased to 14.1 million tonnes in early December, an 8.8% increase from late November. 

The Australian Office of the Chief Economist stated that it is unclear how much the Chinese government will restrict steel production levels in the last few weeks of 2023. 
Given that the government places a higher priority on economic growth, production cuts have not yet been strictly enforced. But a slight slowdown in Chinese steel production is anticipated," the statement read. 

According to BMI, production is beginning to show signs of improvement on the global supply side.

According to the Australian Office of the Chief Economist, additional stimulus-related infrastructure projects along with a projected stabilisation and gradual uptick in global industrial production should support stronger growth in the steel demand in 2024.  

BMI stated that while production is expected to rebound in other important markets, it expects an improvement in supply-side production growth driven by Chinese steel mills. 

According to T V Narendran, CEO and MD of Tata Steel, the country's steel industry is still recuperating from the Covid pandemic. This was stated on Monday. He predicted that steel demand would rise further due to the government's emphasis on building infrastructure.
"This (2023) has been good year for the steel sector in India, even though it was a challenging period globally," Narendran stated here.
"After the global pandemic, the steel industry is still in the process of recovering. Indeed, the RBI's effective management of the microeconomy and the investments made in infrastructure development are the main reasons for our strong recovery," he stated during a New Year's programme.

He stated that the demand for steel increased by 10–12% in 2023 and that this trend should continue, although he expressed concern about the rise in steel imports from China.

"China has been exporting 8 million tonnes of steel every month (in 2023), which was the highest since 2015, and this has an impact on international steel prices as well as profitability," Narendran stated.

To keep its market share, Tata Steel will need to add one to two million tonnes to its capacity annually, "which we have been doing," he said.

In August 2023, Narendran announced that the company intended to increase its installed annual steel production capacity in India from approximately 22 MTPA to 40 MTPA by 2030.
 

India saw an unprecedented influx of steel, reaching an all-time high of 1.2 million tonnes in November, despite its advocacy for localization. This surge in imports coincided with a global trend of declining steel demand. According to CRISIL, imports will rise even more this fiscal year, potentially reaching 6 million tonnes. Crisil reports that although the demand for steel has decreased globally, demand growth in India has defied this trend, rising by 13%.

India supports localization, but domestic steel producers are concerned about the increase in steel imports, which come primarily from China and are routed through Vietnam.

The Indian Steel Association (ISA), which refers to the ongoing concerns about rising imports and raw material prices as "dumping of steel products" in the market, has brought attention to these issues.

As a result, domestic steel producers would like India to restrict entry for these goods, and they will be looking to the interim budget for assistance.

In order to reduce inflow surges, reports state that India has been considering safeguard measures similar to the quota system of the European Union. It will be important to keep an eye out for any announcement on those lines in the interim budget.

According to reports, India might also think about reexamining the lesser duty rule and enforcing import restrictions across ports.

The steel industry requested strict safeguard measures from the budget last year, such as increased import duties and the reinstatement of anti-dumping laws on a range of steel products.

The government is working on a revised Production Linked Incentive (PLI) scheme 2.0 for the steel sector, Minister of State (MoS) for Steel Faggan Singh Kulaste stated in a recent interview with PTI, underscoring the government's emphasis on supporting the sector and guaranteeing raw material availability.
The steel industry demands increased government capital expenditure to drive infrastructure development because India is the largest economy growing at the fastest rate and because 'Aatmanirbhar Bharat' is expected to result in significant infrastructure development and manufacturing capacity expansion. Steelmakers are also seeking increased budgetary allocations towards the PLI scheme in order to support the industry's growth trajectory.

The industry is anticipating more government support, so the pace of government capital expenditure is essential to long-term growth. It is expected that the impending interim budget will present policies aimed at tackling the difficulties encountered by the steel industry, striking a balance between strengthening domestic manufacturing and controlling the flood of imports.

According to Union minister Faggan Singh Kulaste, the government is working on the Production Linked Incentive (PLI) scheme 2.0 and looking into ways to guarantee a sufficient supply of raw materials for the steel sector in 2024.
The demand for steel will rise with strong economic growth, but industry participants are still worried about rising imports and high raw material prices in light of geopolitical unpredictability.

Following the coronavirus pandemic that affected the steel industry in 2020–21, steel consumption and production have recovered strongly.
The total amount of crude steel produced this year between April and November was 94.01 million tonnes (MT), an increase of 14.5% over the previous year. According to data from the Steel Ministry, during the same period, the annual consumption of finished steel increased by 14% to 86.97 MT.
By 2030, India wants to have 300 MT of installed steel production capacity. The nation currently has a capacity of about 161 MT.

"We are getting ready for PLI 2.0 in the steel industry. Speaking about the government's priorities for the steel industry in 2024, Kulaste stated that it is being discussed at various levels.
The Minister of State (MoS) for Steel stated in an interview with PTI that the government will guarantee the supply of raw materials for the steel industry and that encouraging the use of scrap will be a priority.
Furthermore, Kulaste, who also oversees the MoS Rural Development portfolio, stated that efforts will be made to encourage industry participants to employ artificial intelligence and cutting-edge technologies in order to increase steel output while simultaneously looking to reduce carbon emissions.

The PLI scheme 1.0, which would increase the production of speciality steel and contribute to the creation of an additional 25 MT of capacity, was approved by the government.
The minister predicted that in 2024, steel production and demand would rise sharply as a result of infrastructure improvements.
According to Kulaste, all steel companies are expanding their capacities, and in order to facilitate business dealings, the government has been assisting them with project clearances.
He added that the government is also in contact with a number of nations to investigate other options for sourcing coking coal. "Our ministry remains in constant touch with the state governments and its officials to help them with any issue that comes in their projects," he said.

However, the Indian Steel Association (ISA) stated that after years of "dumping of steel products," particularly from China and Vietnam, the industry will continue to be concerned about rising imports and high raw material prices in the coming year.
Ninety percent of India's coking coal needs are still met by imports. Thus far in 2023, imports have accounted for 70–80 MT.
According to ISA Secretary General Alok Sahay, the industry is still dealing with the import problem and is looking to the government for tough action to curb the import wave that is hurting the home market.

The association, which speaks for the interests of the domestic steel sector, projects that FY24 steel production will be between 123 and 127 MT.
Between January and November of 2023, India imported 5.87 MT of finished steel, up 18% from 4.96 MT during the same period in 2022. According to ISA, India's exports decreased by 20% to 6 MT from 7.46 MT in the same period the previous year.
Sahay went on to say that the government is actively thinking about including refractories in the next PLI scheme 2.0 for steel, which will be in line with the bold plan to double the nation's capacity for producing steel to 300 MT by 2030.

Kulaste has also pushed the steel producers—including the government-owned SAIL and RINL—to broaden their range of offerings in light of the expanding demands of diverse industries for steel.
According to Tata Steel, there are signs of a recovery in demand due to higher infrastructure spending in developed nations, which is supporting global efforts to reduce carbon emissions. Another important market for steel, the auto industry, is also recovering well.
World steel demand in 2023 was impacted by reduced investments and consumption. The uncertainty was exacerbated by geopolitical developments such as the wars in West Asia and Ukraine, as well as inflationary pressures. The manufacturing sector did not see a significant improvement on the demand side, even though supply chain bottlenecks eased, according to the company.
 

According to official data released on Friday, the output of eight major infrastructure sectors increased by 7.8% in November 2023 compared to a 5.7% expansion in the same period last year.
During the month under review, all sectors saw healthy production growth, with the exception of cement and crude oil.

October saw a 12% growth in the core sector, which includes coal, crude oil, natural gas, refinery products, fertiliser, steel, cement, and electricity.
The output of coal and refinery products increased by double digits.
Eight sectors' output increased by 8.6% between April and November 2023–24 compared to 8.1% during the same period the previous year.
 

The company plans to pay off its current ?560 crore debt in order to become net debt-free after completing the capacity expansion project in 18 months.

Jai Balaji Industries has come a long way, from being listed on the second RBI list of notorious defaulters in 2017–18 to preparing a ?1,000 crore capital expenditure. It is now an extremely rare example of a steel industry turnaround story that has succeeded.

After being hit by the Supreme Court's abrupt sale of a coal block and attempting a 5 million tonne annual greenfield expansion, the producer of large ductile iron (DI) pipes faced an unprecedented challenge in 2011–12 and ultimately failed to make payments on a ?3,400 crore loan to a group of 22 banks.
Despite being brought before IBC, the business settled its debts with lenders outside of court. Some banks paid the debts straight to the company, while others assigned the loans to asset reconstruction firms like Edelweiss and Omkara.
The business continued to concentrate on increasing productivity, reducing expenses, and raising the calibre of its output even as it battled the financial crisis. It produces TMT bars, specialty ferroalloys, and DI pipes for water supply. 2020 proved to be the company's turning point.

In the first half of this fiscal year, the company's net profit more than doubled to ?372 crore from ?43 crore during the same period previous year, thanks to improved margins. Revenue increased by 7% to ?3,065 crore (?2,876 crore).

According to Aditya Jajodia, Chairman and Managing Director of Jai Balaji Industries, the company's turnaround can be attributed to its shareholders, employees, and financial lenders who all had total faith in the management team and knew the business would succeed.

This year, the promoter family invested ?250 crore in the business to bolster its net worth and inspire confidence in lenders. It recently received ?40 crore for working capital and ?559 crore from Tata Capita to pay off outstanding debt.

At its Durgapur plant in West Bengal, Jai Balaji Industries has designed a capital expenditure plan worth approximately ?1,000 crore to increase the capacity of DI pipes and special-grade ferroalloys. Plans to build a 50–70 MW solar power plant through a separate capital expenditure are also becoming more solid.

After paying off its current ?560 crore debt, the company hopes to become net debt-free in 18 months from the completion of the capacity expansion project.

The Jal Jeevan Mission of the Central government, which provides funding for water supply projects all over the nation, is helping the new strategy, which focuses on ductile iron pipes used for water supply. The industry is anticipated to expand in the near future at a CAGR of 13–15%.

Kolkata According to global analytics firm Crisil, the Indian steel industry has experienced a multi-year demand surge that will continue in FY'24 but is predicted to moderate in FY'25. In three years, the industry has seen double-digit demand growth rates of 11 to 13 percent, and in FY'25, it is expected to slow to 3 to 5 percent, according to Miren Lodha, Director of Research at Crisil Market Intelligence and Analytics, who made this announcement on Friday.

"It is evident that we are experiencing a supercycle in demand," Lodha stated to PTI.

Before the general election, in FY'25, there will probably be some moderation in the long steel segment.

According to him, there has only been one other similar demand spike in the previous 20 years, and that was from 2006 to 2008.

According to Lodha, the infrastructure industry, which is a major factor in the demand for steel, is anticipated to keep growing thanks to ongoing government initiatives.

The steel demand has been increasing significantly due to the infrastructure sector, and this trend is anticipated to continue in the upcoming years. But as government programmes like the Pradhan Mantri Awas Yojana draw to an end, he said, the demand momentum in the steel industry may slow down.

According to Lodha, domestic manufacturers are becoming concerned about the recent spike in steel imports, which is being driven by lower Chinese prices and strong Indian demand.

"The disparity between import and domestic prices has triggered significant imports," he continued. Over time, however, it will self-correct due to the continuous capacity addition.

"New steelmaking capacity of 12-13 million tonnes is expected to come online in the second half of fiscal 25, aligning production with demand and reducing import dependence," said Lodha.

Chinese exports to India may also be further restricted by anticipated production cuts and possible demand recovery in China following the Lunar New Year.

The future of the Indian steel industry is bright overall, even though demand is expected to decline in 2019. According to him, the industry's main priorities will be to increase home production and address import issues in order to sustain strong long-term growth.

Ranchi: On Friday, the Tata Steel subsidiary The Tinplate Company of India Ltd. (TCIL) announced that it would invest Rs. 1,787 crore to build a 3-lakh-tonne-per-year manufacturing facility in Jamshedpur, Jharkhand. According to TCIL, the facility, an expansion project, is expected to create roughly 600 direct and indirect job opportunities when it is completed in 2026.
At a ceremony to commemorate the end of the fourth year of the JMM-led government in the state, an agreement was signed in this regard between the company and the Jharkhand government.
"... This landmark MoU heralds the establishment of a cutting-edge 300,000 Tonnes per Annum (TPA) manufacturing facility in Jamshedpur, backed by an investment of approximately Rs 1,787 crore," a statement from TCIL read.

According to the statement, the facility will support the state's industrial growth by enhancing Tinplate's manufacturing capabilities with cutting-edge technology and automation. It will also make a significant contribution to both domestic and export markets.

"We are committed to partnering with the Jharkhand Government and local communities to promote economic and social development, including job creation, increased revenue, and skill development opportunities for the local workforce," said Managi, R N Murthy.

The main products that TCIL offers are Tinplate and Tin Free Steel, which are used as packaging substrates for a variety of industries. These industries include those that make bottle crowns, edible oils, paints and pesticides, processed foods, batteries, and aerosols.

In April, TCIL's expansion project in Jamshedpur held groundbreaking ceremonies, in which Chief Minister Hemant Soren participated.
 

Morning Brief: Experts predict that by 2030, India's need for manganese ore could reach 11 million tonnes (mnt), in line with the country's 255 million tnt capacity for crude steel. However, the demand for manganese ore in India is probably going to pick up steam in the near future. During an engaging session at SteelMint's Engage 5.0 webinar series, recently held, Rajesh Pundlikrao Patil, General Manager, MOIL, and Sripal Jain, Chairman, Oswal Group Ltd., shared their insights on the key drivers of the manganese alloys markets.
The Indian government wants to be able to produce 300 million tonnes of crude steel by 2030. Based on prevailing market conditions, the output of crude steel is projected to attain 255 million tonnes by 2030. 11 million tonnes of manganese ore will be required to meet this enormous demand, which can be accomplished by both adding new and expanding the current capacities across the nation, according to Patil. An estimate of 8.5 million tonnes of manganese ore and 2 million tonnes of manganese alloys are currently needed, according to SteelMint (not including exports).

Presently, only about 3 million tonnes of manganese ore are produced domestically; imports are the only way to meet the remaining demand. However, India has large reserves of manganese ore that can be gradually increased in response to rising demand, so imports of the material will be significantly decreased in the future.

"India's manpower advantage implies that production of manganese alloys will not be significantly affected by competitors in the market such as Malaysia and other nations that offer lower energy prices but are hamstrung by high labour costs,"remarked Jain.

According to the results of Mysteel's most recent survey, the lack of interest Chinese steelmakers once showed in stockpiling steel scrap for the winter is gradually giving way to eagerness as mills are rushing to acquire scrap in order to guarantee that they have enough feedstock for production all winter long.

According to a market analyst based in Shanghai, "winter is typically a slack season for scrap consumption in China, but this year, the actual market performance remains warm."

"In the last two months, domestic mills have increased their utilisation of scrap by approximately 30% after realising its strong cost-effectiveness," she continued. She also forecasted that the mills' eagerness to produce will probably persist in January since they are still making healthy profits.

Meanwhile, the winter cold is making it more difficult to transport scrap materials and to collect and process scrap on location, according to reports.

Mysteel Global discovered that a large number of steelmakers from East, North, and Central China are having trouble finding steel scrap. According to the survey results, most mills aim to build up enough inventory to last 10–30 days, but because of the scarcity of scrap, this is not happening as planned.

For instance, steel scrap inventories in scrapyards and ports in Jiangsu province, East China, the nation's primary hub for the consumption of steel scrap, are still low, and orders have already been accepted for a portion of the available stocks, the Shanghai analyst said.

The company plans to pay off its current ?560 crore debt in order to become net debt-free after completing the capacity expansion project in 18 months. Jai Balaji Industries has come a long way, from being listed on the second RBI list of notorious defaulters in 2017–18 to preparing a ?1,000 crore capital expenditure. It is now an extremely rare example of a steel industry turnaround story that has succeeded.
After being hit by the Supreme Court's abrupt sale of a coal block and attempting a 5 million tonne annual greenfield expansion, the producer of large ductile iron (DI) pipes faced an unprecedented challenge in 2011–12 and ultimately failed to make payments on a ?3,400 crore loan to a group of 22 banks. The business continued to concentrate on increasing productivity, reducing expenses, and raising the calibre of its output even as it battled the financial crisis. It produces TMT bars, specialty ferroalloys, and DI pipes for water supply. 2020 proved to be the company's turning point.

In the first half of this fiscal year, the company's net profit more than doubled to ?372 crore from ?43 crore during the same period previous year, thanks to improved margins. Revenue increased by 7% to ?3,065 crore (?2,876 crore).

According to Aditya Jajodia, Chairman and Managing Director of Jai Balaji Industries, the company's turnaround can be attributed to its shareholders, employees, and financial lenders who all had total faith in the management team and knew the business would succeed.

In an effort to satisfy domestic demand and control prices, India may waive quality control requirements for some imports of steel products, according to sources cited by ET Now on Thursday. High-speed tool steel and aerospace steel grade are two possible products.

Only steel grades approved by India's Bureau of Indian Standards and subject to its quality control policy are permitted.
 

According to preliminary government data seen by Reuters on Wednesday, India became a net importer of finished steel in the first eight months of the fiscal year that started in April, with shipments from China hitting their highest level in five years. Between April and November, China shipped 1.3 million metric tonnes of finished steel to India, making it the top exporter of the alloy—a 48.2% increase over the same period last year. India received the majority of the world's top steel producer's exports of coils and sheets, both hot and cold, then plates and pipes. The Indian steel sector has requested government intervention in order to protect itself from imports from China. According to data, India imported 4.3 million tonnes of finished steel between April and November, up 13.4% from the same period last year and a four-year high. With 1.3 million metric tonnes shipped, South Korea was the second-largest supplier of finished steel to India during that time. India is currently the second-largest producer of crude steel in the world, with 94.1 million tonnes produced in the last eight months—a 14.7% increase from the previous year. At a five-year high, domestic consumption of finished steel increased to 87.1 million tonnes, a 14.9% increase.

Mumbai: According to industry experts, if the domestic steel industry hopes to control rising imports, it will need to work on raising prices in the local market. Due to a steel glut, China exported excess steel to other countries. As a result, India's imports of steel from its northern neighbour increased to 1.1 million tonnes (mt) in October, a 47% year-over-year increase.