In addition to strengthening the UK's steel security, the project will be the first significant step towards the decarbonization of the regional steel sector.

The UK government and India's Tata Steel have jointly announced plans to invest £1.25 billion in an electric arc furnace steelmaking project at the Port Talbot site in Britain.

A £500 million grant from the UK government will be included in the investment.

According to IANS, the project will reduce direct emissions by 50 million tonnes over a ten-year period, making it the first significant step towards decarbonizing the local steel industry in addition to strengthening the UK's steel security.

The agreement with the UK government, according to Tata Group Chairman N. Chandrasekaran, is a turning point for the country's steel sector and industrial value chain.

"The project would leverage strategically available scrap steel that is domestically available and promote local value addition within the UK, all while maintaining a high degree of circularity," he stated.

The proposal and the transition period, which could involve a significant restructuring of the carbon-intensive and unsustainable iron and steel-making facilities at Port Talbot, where many of the current "heavy end" assets, like blast furnaces and coke ovens, are nearing the end of their useful lives, will be the subject of consultations soon, according to Chandrasekaran of Tata Steel UK.

As part of the proposed project, Tata Steel's balance sheet would also be reorganised, possibly eliminating the company's current cash losses from its operations in the UK and non-cash impairment of its legacy investments.

An increase in price of approximately Rs 2,000–3000 per tonne for hot-rolled coils and Rs 4,500–6,000 per tonne for cold-rolled coils is anticipated. 

India's steel producers have started negotiating a price increase for auto-grade offerings, or supplies to automakers and automakers. There are hints that they have requested increases in all categories of between Rs 2,000 and Rs 6,000 per tonne due to the rising cost of raw materials, primarily coal. 

An increase in price of approximately Rs 2,000–3000 per tonne for hot rolled coils (HRCs) and Rs 4,500–6,000 per tonne for cold rolled coils is anticipated.

By successfully contesting the revenue department's Rs 100 crore transfer pricing claim, Tata Steel Ltd. was granted a favourable ruling by the Income Tax Appellate Tribunal. The disallowance of interest paid on perpetual non-convertible debentures totaling approximately Rs 266 crore, the disallowance of the provision for leave encashment totaling approximately Rs 324 crores, and other disallowance claims were all decided in favour of Tata Steel by a bench consisting of Amit Shukla and Padmavathy S.

Due to the market rate paid for the electricity supplied by the company's captive power plant, the Transfer Pricing Officer (TPO) had requested to make a transfer pricing adjustment.
Tata Steel's attempt to deduct interest paid on its debentures was also denied by the assessing officer (AO), who viewed the debentures as equity rather than debt. The auditor certified a deduction of approximately ? 324 crore, so the tribunal disagreed with the AO's conclusions.

Vice President of Safety, Health, and Sustainability at Tata Steel Rajiv Mangal spoke about the lifecycle assessment of the steel industry from the viewpoints of cost, society, technology, and the environment.

A major step forward in tackling the world's sustainability concerns was accomplished with the successful conclusion of the 10th International Conference on Sustainability, or SUSCON X, of IIM Shillong. Mangal was present for the opening event.

On Tuesday, JSW Steel announced that it had settled the approximately Rs 2.79 lakh fine imposed on JSW Ispat Special Products Ltd (JISPL) by the Reserve Bank of India (RBI). JSW Steel stated in a filing on Tuesday that JISPL was amalgamated with effect from July 31, 2023, following a ruling of the National Company Law Tribunal dated June 22, 2023.
"JSW Steel said today that it had paid and discharged a penalty of Rs 2,79,718 that the RBI had imposed via its order dated November 22, 2023 on the former JISPL in response to a compounding application it had made for delayed filing of Form FC-GPR under Regulation 13.1(2) of FEMA Regulations 2017, in relation to the issue of shares to a person resident outside India."

Ahmedabad-based Ratnamani Metals and Tubes, a company specializing in the manufacturing of seamless stainless steel and welded tubes and pipes, is reportedly in the process of planning to establish an in-house unit for the production of stainless steel long products.
In a conversation with CNBC-TV18, Manoj Sanghvi, the head of Ratnamani Metals and Tubes' business unit, shared that the company is contemplating backward integration into stainless steel long products to enhance its industry standing. While no final decision has been made, the company is actively exploring this possibility. If implemented, the proposed project is anticipated to require a significant capital expenditure, estimated to fall within the range of ?500 crore to ?700 crore. As of now, Ratnamani Metals and Tubes sources its stainless steel from third-party suppliers.

During the September quarter, Ratnamani Metals witnessed a notable growth in revenue, marking a 26% increase, and a substantial growth in Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA), which rose by 68% compared to the same period last year. A noteworthy highlight of the quarter was the expansion in margins, exceeding 21%, surpassing the company's earlier guidance of 16% to 18%.

The enhanced margin performance was attributed to a higher percentage of stainless steel tube volumes and the successful execution of orders with favorable margins.

According to Sanghvi, Ratnamani Metals is anticipated to achieve a topline in the range of ?4,800 crore to ?5,000 crore by the end of the current financial year. The stainless steel business constitutes 30% of the overall topline. Regarding future margin expectations, Sanghvi projected a range of 16% to 18%. Although this guidance is slightly lower than the margins achieved in the first half of the financial year 2024, it considers the higher contribution from the water pipe segment, which may impact overall margins.

The company's current capacity utilization is close to 60%, indicating potential for further expansion. As of November 1, Ratnamani's order book stood at ?2,950 crore, with 20% coming from the exports market.

As of now, Ratnamani Metals & Tubes is trading at a fresh lifetime high, having experienced a 30% rally so far in 2023. The stock is currently trading at a price-to-earnings multiple of 35 times the financial year 2025 estimated Earnings per Share (EPS). With a market capitalization of Rs 24,375 crore, the company seems poised for a dynamic phase of growth and innovation in the stainless steel industry.

India's steel demand is anticipated to experience a Compound Annual Growth Rate (CAGR) of 7%, reaching the 190 million tonne (MT) level by 2030, according to a report by SteelMint India. The primary drivers of this demand are expected to be the construction and infrastructure sectors, contributing 60-65% to the overall demand. The report, titled 'India’s Steel and Coking Coal Demand 2030', suggests that in the best-case scenario, the demand could even reach 230 MT by 2030.

Other contributing factors include the auto and engineering sectors, as well as population growth, increasing urbanization, and various government initiatives. The report projects that by the end of 2023, steel demand will touch the 120 MT mark, with production reaching 136 MT.

Looking ahead, India's crude steel production is expected to reach 210 MT by 2030, representing a 45% increase from the production levels of 2023. The positive outlook reflects the country's robust growth prospects and the pivotal role of the steel industry in driving economic development.

According to the report, several countries, including China, are expected to witness a decline in steel production compared to their current levels. Regarding the demand for raw materials, SteelMint indicated that India's steel production growth through the Blast Oxygen Furnace (BOF) route, targeting 140 million tonnes of hot metal output by 2030, will necessitate 116 million tonnes of metallurgical coal. The report suggests that India is poised to become the largest importer of sea-borne metallurgical coal, holding a market share of 30%. By 2030, the country is projected to require approximately 350 million tonnes of iron ore to support its steel production needs.

The year 2030 holds significance for the Indian steel industry, as the government has set an ambitious target to increase the country's installed steel-making capacity to 300 million tonnes. Out of the approximately 80 million tonnes of additional steel production capacity to be added in India by 2030, 66% is expected to come from the Blast Furnace-Basic Oxygen Furnace (BF-BOF) route. Currently, in India, the Basic Oxygen Furnace (BOF) and Electric Arc Furnace (EAF) contribute 46% and 54%, respectively, to the overall steel production.

Iron ore exports in the first half of fiscal year 2024 reached 18.68 million tonnes, marking a significant increase compared to 6.98 million tonnes in the same period of the previous fiscal year (H1FY23).

India's iron ore exports experienced a nearly threefold increase on a year-on-year basis, reaching 18.68 million tonnes in the first half of the fiscal year 2024 (April–September FY24). Notably, China accounted for 95% of these shipments. In comparison, iron ore exports stood at 6.98 million tonnes in the same period of the previous fiscal year (H1FY23).

Breaking down the YoY figures, lumps or pellet offers surged by 240% to 14.88 million tonnes in H1FY24, while concentrates saw a 44% increase to 3.80 million tonnes.

The surge in demand for Indian iron ore during this period can be attributed to the easing of Covid restrictions in China and an overall improvement in demand after the reopening of economies.

The surge in India's iron ore exports in the first half of fiscal year 2024 was influenced by various factors. The withdrawal of duty in India, impacting FY23 numbers, created a low base effect for year-on-year comparisons, according to a Steel Ministry official. Cheaper Indian offerings were favored by Chinese steel mills, aiming to cut costs and protect margins amid weak demand.

China's iron ore purchases totaled 17.82 million tonnes, nearly four times the 4.75 million tonnes in H1FY23. These current shipments rank as the second-highest since FY20, with previous figures for the April–September period at 13.28 million tonnes in FY20, 27.67 million tonnes in FY21 (the highest in the last five years), and 16.72 million tonnes in FY22.

Over the last three months, iron ore prices, particularly fines with 62% iron content, have increased from $90 per tonne in August to $107 per tonne in September, reaching $110 per tonne in October. The rise in lower-grade ore purchases contributed to an increase in prices from $67 per tonne in August to $84 per tonne in September, stabilizing at $85 per tonne.

Apart from China, other buyers included Indonesia, Malaysia, Brazil, and the UK, but their numbers were not as significant, according to a trade source.

The heightened export demand resulted in a 15% year-on-year increase in iron ore production, reaching 129 million tonnes in H1 FY24, up from 111 million tonnes in H1 FY23. Crude steel production also saw a 14% rise to 70 million tonnes in H1 FY24. In FY23, India's crude steel production was 126 million tonnes, with 46% coming from the blast furnace route and the remaining produced via electric arc furnace.

In the domestic market, the price of iron ore with 62% Fe content was $60 per tonne in October (Rs 5,000 per tonne) in Odisha, showing improvement from $57.67 per tonne (Rs 4,300 per tonne) in August. The September price was $58.87 per tonne (Rs 4,900 per tonne).

Global steel demand is anticipated to experience a 1.8% growth in 2023 and a 1.9% expansion in 2024, as stated by the World Steel Association (worldsteel), an organization representing all steel-producing nations. According to worldsteel's short-range outlook, the demand is projected to reach 1,814.5 million tonnes (mt) in 2023 and 1,849.1 mt in 2024. The association had previously estimated 2022 crude steel production at 1,831.5 mt, reflecting a 4.3% decrease compared to 2021.

Worldsteel noted that the recovery of steel demand is anticipated to be sluggish in developed economies, while expressing optimism about the prospects of developing nations. The organization highlighted the impact of a high inflation and interest rate environment on steel demand, noting a notable cooling of activities in steel-using sectors across most regions since the second half of 2022. This slowdown, attributed to weakened investment and consumption, persisted into 2023, particularly affecting the European Union (EU) and the United States.

Worldsteel further emphasized that, due to the delayed effects of the tightening monetary policy, the expectation is for a gradual recovery of steel demand in advanced economies in 2024. In contrast, emerging economies are projected to grow at a faster pace than developed ones. However, the performance of emerging economies is divergent, with emerging Asia demonstrating resilience amid these conditions.

Despite the challenges posed by a high-interest rate environment, the Indian economy remains stable, and the steel demand in India is poised to sustain its robust growth trajectory. The growth in the country's construction sector is fueled by substantial government investments in infrastructure and a rebound in private investment. Additionally, the capital goods sector is expected to benefit from ongoing infrastructure investments. The automotive sector is projected to maintain a healthy growth momentum.

In 2022, the steel demand in India exhibited a noteworthy growth of 9.3%, and this positive trend is expected to continue with a robust growth of 8.6% in 2023, followed by a further increase of 7.7% in 2024. This optimistic outlook reflects the resilience and positive dynamics within India's economic landscape.

In a regulatory filing, JSW Steel announced the completion of its final tranche of investment, amounting to approximately Rs 75 crore, in JSW Paints on Wednesday. The company has fulfilled the entire investment commitment of Rs 750 crore in JSW Paints, as stated in the filing. JSW Steel received confirmation from JSW Paints on November 22, 2023, regarding the completion of the allotment for the strategic investment. Following this allotment, JSW Steel now holds 2,94,82,565 equity shares in JSW Paints, constituting 12.84% of the issued and paid-up equity capital (11.85% on a fully diluted basis). The strategic investment of Rs 750 crore was approved by the JSW Steel board on July 23, 2021, to be made in 3-4 tranches between FY 2021-22 and FY 2024-25.

Export prices for Indian silico manganese have experienced a weekly decline, with the 60-14 grade down $14/t and the 65-16 grade down 1% ($8/t). Limited trade and recent bulk shipments at lower prices to Europe and Turkey have kept prices slightly lower. Despite some export inquiries for low-grade 60-14 silico manganese, competitive pricing from Malaysia and China has prompted negotiations between buyers and sellers, leading to a slight week-on-week drop in prices. Sellers, mindful of the high production costs, were cautious about further reductions to avoid compromising margins. As of November 24, SteelMint's evaluation indicated prices for the 60-14 grade at $751/t FOB, down $14/t FOB week-on-week, and $832/t FOB, down $8/t FOB week-on-week.

Additionally, the reduction in electricity charges by INR 1.68/unit for FY'24 in the Andhra region has brought relief to local industries, leading to resumed production and an anticipated restoration of material availability. This development is expected to put pressure on sellers in Raipur and Durgapur to lower manganese alloy prices.

On the global stage, the Chinese silico manganese market is experiencing a sluggish period marked by low trade activity. The recent dip in steel prices has heightened trader caution in manganese alloy dealings, contributing to a lack of market supply liquidity. Silico manganese (65-17) prices in China have maintained stability week-on-week at RMB 6,500/t ($894/t). Traders are proceeding cautiously amid limited market liquidity, and many are adopting a wait-and-see approach as steel mill bidding continues to drive prices down. Simultaneously, the Indian market grapples with liquidity constraints and fluctuations in steel prices, with manganese alloys receiving limited support from both domestic and international steel markets.

Adding to the overall scenario, China's Zhengzhou Commodity Exchange (ZCE) witnessed a decrease in silico manganese futures prices for February 2024 deliveries, dropping by RMB 144/t ($21/t) week-on-week to RMB 6,496/t ($921/t) on November 27, 2023.

Financial bids for a majority stake in Chhattisgarh-based NMDC Steel (NSL), a subsidiary of the government-owned miner NMDC, are likely to be postponed until after the Lok Sabha elections in May next year. The delay in the proposed sale of the Centre's 50.79% stake in NSL is due to opposition from the Congress, which currently governs Chhattisgarh. The stake, with NSL's new 3 million tonne per annum hi-smelt technology at Nagarnar, is anticipated to be valued at least Rs 11,000 crore for the Centre.
The anticipated financial bids for NSL, originally planned after the commissioning of the new plant in August, have been postponed, according to sources. The fully operational steel plant, featuring new technology and a recently activated blast furnace, has garnered strong investor interest. With NMDC's substantial investment of around Rs 22,000 crore in the plant and minimal implementation risk, the NSL's share price has risen by 36%, reaching around Rs 41 as of October 23 from its Rs 30.25 listing on February 20. The strategic sale, involving top domestic and global steel firms, is expected to fetch a considerable amount, surpassing the current market share price. The Centre had received multiple expressions of interest on January 27 for its 50.79% stake in NSL, and an additional 10% stake would be offered to NMDC after identifying the strategic buyer through the bidding process.

Following the successful strategic disinvestment of Odisha-based NINL to Tata Group for Rs 12,100 crore in January 2022, NSL is poised to become the second steel firm to undergo divestment. In line with the new policy, which categorizes steel as a non-strategic sector, the Centre plans to privatize all viable steel units progressively. However, the pace of disinvestment has slowed down, with many strategic sales, including NSL, being postponed to the following year due to upcoming assembly elections in November and general elections in May. Currently, the Centre has achieved only Rs 8,000 crore, or 16%, of the FY24 disinvestment revenue target of Rs 51,000 crore in the present financial year.

India’s steel demand is expected to grow at a CAGR of 7 per cent to touch 190 Million Tonne (MT) level by 2030, according to a report by SteelMint India. The demand will be largely fuelled by construction and infrastructure sectors, which contribute 60-65 per cent to the demand, the market research firm said. In 2030, India’s steel demand is projected to reach 190 MT based on a 7 per cent Compound Annual Growth Rate (CAGR). “In the best case scenario, it can also reach 230 MT by 2030,” the report titled ‘India’s Steel and Coking Coal Demand 2030’ stated.

The demand will also be pushed by sectors like auto and engineering, and factors like population growth, growing urbanisation, various government initiatives will be its key drivers. The demand is expected to touch 120 MT mark by 2023-end, and production will be at 136 MT, as per the report. India’s crude steel production is expected to be at 210 MT by 2030, 45 per cent higher from production levels of 2023.

Many countries, including China, will show a fall in steel production as compared to their current production levels, the report said. On raw material demand scenario, SteelMint said India’s steel production growth via the Blast Oxygen Furnace (BOF) route, aiming for 140 MT of hot metal output in 2030, will require 116 MT of metallurgical coal. In times to come, India will emerge as the largest importer of sea-borne met coal, which has a market share of 30 per cent, it said, adding that the country will require around 350 MT of iron ore by 2030.

The year 2030 is significant for the domestic steel industry as the government has set an ambitious target to increase India’s installed steel making capacity to 300 MT. With approximately 80 MT of steel production capacity to be added in India by 2030, 66 per cent will be through the Blast Furnace-Basic Oxygen Furnace (BF-BOF) route. Currently, BOF and Electric Arc Furnace (EAF) contribute 46 per cent and 54 per cent, respectively, to the steel production in India.

Steel Secretary Nagendra Nath Sinha stated on Tuesday that India now has more than 161 million tonnes of steel capacity and that the sector is expected to grow further. In accordance with the National Steel Policy, India aims to install 300 MT of steel capacity by 2030.

Speaking at the "4th Indian Steel Association (ISA) Steel Conclave" event in the nation's capital, Sinha stated, "We have already crossed 161 million mt of capacity, comprising 67 MT by blast furnace-basic oxygen furnace (BF-BoF) route, 36 MT by electric arc furnace (EAF), and 58 MT by induction furnace (IF) route."

He also emphasized that India's steel industry is well-positioned for future expansion. India is the fourth-largest automobile market in the world, and over the next ten years, Sinha predicted, it would grow at a compound annual growth rate of 8–10%. Steel demand is also being driven by the manufacturing sector, which had a compound annual growth rate (CAGR) of 7-8%.

In the steel industry, the production-linked incentive program has been going quite well. Of the Rs 29,500 crore committed, the industry has invested roughly Rs 10,000 crore. The official went on to say that the industry also faces major obstacles because of carbon emissions and demands from the global market.

According to him, embracing low-carbon technologies, working with stakeholders, and implementing green practices are crucial for the industry's long-term viability and compliance with regional, national, and global environmental objectives.

Regarding the EU's Carbon Border Adjustment Mechanism (CBAM), he stated that the steel sector has been faced with a major obstacle. "There is a lot of room for improvement when it comes to reducing carbon emissions in the steelmaking industry overall. As the world's markets demand, we will soon be exporting low-carbon steel, and I am confident that the industry leaders are working to realign their strategies," Sinha continued.

A few major corporations are expected to enter Bangladesh's steel sector, and a number of current steelworks are hoping to grow in order to capitalize on the growing demand for the essential building material.
Six conglomerates are expanding their manufacturing capacities and building new factories: PHP Group of Industries, Bashundhara Group, Anwar Group of Industries, and Meghna Group of Companies.
Since we produce ceramics, cement, and prefabricated buildings, we are already in the building materials business. The chairman and managing director of Meghna Group of Companies, Mostafa Kamal, stated to The Daily Star earlier this month, "We are going to produce steel to expand our portfolio."

With an estimated investment of $400 million, the conglomerate plans to establish a steel plant capable of producing 14 lakh tonnes of steel annually. Work on the plant at the Cumilla Economic Zone has already begun.

The expansion drive is expected to increase Bangladesh's yearly steel production capacity to more than one crore tonnes.
There are currently 40 steelworks operating with a combined capacity of 90 lakh tonnes. At the moment, Bangladesh needs 80 lakh tonnes of steel per year.

"As goals and lifestyles change, people are moving from tin homes to brick ones. There is a lack of land as well. The founder and chairman of PHP Family, Sufi Mohamed Mizanur Rahman, stated last month that "we will have to go vertical to ensure homes."

PHP Group intends to build a basic steel factory in the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN), Mirsharai in the southeast region of Chattogram. The company has interests in flat steel, float glass, shipbreaking, and automobiles. It will produce 30 lakh tonnes of steel a year at its maximum.

Officials have stated that over 2 million tonnes of hot-rolled coils will be produced annually through the two mills, Bashundhara Pre-fabricated Building Manufacturing Industries and Bashundhara Multi Steel Industries.

By mid-2023, the factories will be ready to start up fully.

The largest producer of steel in the nation, Bangladesh Steel Re-Rolling Mills (BSRM), intends to build a rerolling mill with a capacity of 7 lakh tonnes for steel production.

According to Aameir Alihussain, the company's managing director, this will bring the company's total capacity to 24 lakh tonnes. This was stated last month.

To increase its market share, the Anwar Group, which is already in the steel industry, plans to invest more than Tk 4,000 crore to construct a new factory in Munshiganj's Gajaria.

The factory's land development project is already finished. The plant would have a 16 lakh tonnes annual production capacity.