According to Commerce and Industry Minister Piyush Goyal, India will oppose any "unfair taxes or levies" that affect the viability of the domestic steel and aluminum industries. "Let us not be scared of it and find solutions to our advantage going forward," he said in a speech at the ISA Steel Conclave. Differentiated but common responsibility would have to be accepted by the European Union (EU).

Goyal was alluding to the Carbon Border Adjustment Mechanism (CBAM), which levies a high tariff on steel imports that are not green when they enter European countries. This levy is perceived as an attempt to severely tax Indian steel exports, rendering them uncompetitive. Speaking on the subject, he stated, "We are taking the World Trade Organization (WTO) very seriously about CBAM because we are very concerned about it." We will battle to ensure that Indian exporters and producers receive a fair deal.

"Green" steel is defined as having been produced in an environmentally friendly manner. There is a global movement to reduce emissions and mitigate climate change by decarbonizing the steel industry.

He continued, "We will always come up with creative solutions, but I can guarantee you that India will not tolerate unjust taxes or levies being placed on the Indian steel, aluminum, or any other industry."

A guaranteed off-take for any locally produced green steel was also requested by representatives in an effort to offer quick assistance that will aid in the sector's decarbonization. This was in addition to demands for a reduction in domestic steel export levies to offset the effect of the CBAM duties.

Concerns regarding the high price of coking coal, a crucial input for the steel industry, were also raised by the industry, which also pointed out that sellers were making large profits at the current rates.

According to Steel Secretary Nagendra Nath Sinha, the government is investigating problems related to the dumping of specific types of steel products into the Indian market on Tuesday. The announcement was made as industry worries about the increase in imports of steel are growing.

India continued to be the net importer of steel in October.

At the "4th ISA Steel Conclave" event here, Sinha informed reporters that the Ministry of Finance is investigating dumping issues pertaining to specific categories of steel products and will make a final decision regarding the anti-dumping duty.

SteelMint India reports that in October, the nation imported 0.46 million tonnes (MT) of steel, while exporting 0.24 MT of the metal.

Regarding coking coal supplies, the official stated that the government is attempting to obtain the raw material for making steel from alternative sources and is in discussions with Russia and Mongolia.

The majority of the imports come from Mozambique, Australia, the US, and Canada.

The secretary responded that the second stage of the production-linked incentive program for the steel industry is currently in the discussion stage when questioned about it.

T V Narendran, CEO and MD of Tata Steel, expressed concern about India's net import of steel.

If imports continue to climb, the government has promised to step in, according to Narendran.

1. With export assistance, Benelux scrap continues to rise.
2. India's Aspiration for Steel Faces the Scrap Challenge
3. The expansion of India's steel industry is threatened by upcoming EU scrap metal restrictions.
4. American scrap trading begins, exporting company
5. China: Due to declining production, steel futures are still high.
6. Eramet: Europe's steel crisis will continue.
7. For the winter, Ukrainian ferroalloy plants cease operations.
8. Saudi Arabia's Rajhi maintains rebar rates while others rise.
9. In the UAE, secondary mills have trouble selling rebar.
10. Rebar prices in Kuwait are still steady.
11. The US produces more raw steel.
12. USA: As the UAW Strike Ends, Steel Prices Rise by 1 inch
13. Rebar slides as competition becomes more fierce in Bahrain.
14. Severstal reports a spike in Russia's steel consumption in 2023.
15. British Steel intends to switch from BFs to EAFs 16.

Metal
India imports more steel than it exports in October, totaling 0.57 mt.

Sustainable steel production is increased by new CO2 to CO technology.

SAIL plans to invest $150–200 million to increase mine capacity in Mozambique.

From April to October, SAIL's Rourkela mill produced the most crude steel ever.

India can learn industrial policy lessons from Tata and Vedanta.

JSW Steel should reconsider giving up the thermal coal mine.

Vedanta, owned by billionaires, closes a deal for Zambian copper.

British Steel is going to close its blast furnaces, endangering 2,000 jobs.

As the UAW Strike Ends, Steel Prices Increase by One

The daily steel output of CISA mills decreased by 5.65% in late October.

Liberty House Group's €140 million freezing order is approved for ArcelorMittal.

China's domestic rebar prices are predicted to rise further this week.

The EU opposes circumvention

IRON ORE

Legacy Iron Ore, an NMDC subsidiary, will mine gold in Australia

Innovative breakthrough in the bauxite refining process is patented by Vedanta Aluminium.

After a price surge, traders are being cautious, and iron ore prices are rangebound.

POWER & COAL
India will continue to be the leading coking coal importer: Oommen, President of ISA

The Coal Secretary predicts that the government will hold its next round of commercial coal mine auctions on November 15.

India to increase its coal power capacity ahead of the COP meeting

If we hadn't imported coal, India's electricity situation would have been worse than Sri Lanka's, claims RK Singh.

Demand for seaborne thermal coal in Asia is increasing, but prices are still low.

The amount of coal used in US power plants is declining, with mines feeling the full effects.
 

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."

India is the fourth-largest automobile market in the world, and over the next ten years, Sinha predicted, it will grow at a compound annual growth rate of 8–10%. The demand for steel is also being driven by the manufacturing sector, which saw 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. We will soon be exporting low carbon steel as demanded by international markets, I'm sure of it. The industry leaders are readjusting their strategies," Sinha continued.

Indian stainless steel manufacturer Jindal claims that growing scrap protectionism in a number of nations could present significant obstacles to the country's stainless steel industry's efforts to increase production and consumption of the metal.

Scrap self-sufficiency has been an urgent issue for India because the country prefers to use scrap steel as the primary raw material in the production of stainless steel. However, in the coming years, there will also be a greater need for stainless steel in India.

According to statistics, India, the world's second-largest consumer of stainless steel, will require 4.6–4.8 million tons in 2025 and 6.6–6.7.8 million tons in 2030.
 

India was a net importer of steel in October, with imports totaling 0.57 million metric tons (mt) against exports of 0.29 mt. Even when cheaper offers from China entered the country, numbers were impacted by a lack of export offers from Vietnam, West Asia, and Europe.

According to a Steel Ministry report that Businessline was able to see, imports were more than exports by over 0.28 million tons.
As per the data, the month's imports fell by 4% YoY (from 0.6 mt in October 2022), while exports declined by 21% (from 0.36 mt). However, imports increased by 50% month over month from 0.38 mt in September, a sign that lower-priced Chinese and Vietnamese goods are eroding the market share of domestic steel producers, according to trade sources. Despite September's exports being among the lowest in the previous five years at just 0.16 mt, export statistics climbed by 78% month over month.
India continued to be a net exporter of steel during the seven-month period from April to October, with 3.52 mt going out (down 11% from 4 mt exported in 7MFY23) and 3.47 mt coming in (up 10% from 3.2 mt).
India's imports of steel have increased in H1 FY24 (April–September). India's imports are increasing, so this is still an area we need to be cautious about. During an earnings call, Jayant Acharya, Joint MD and CEO of JSW Steel, stated that exports also decreased during this time.
 

The presence of less expensive import substitutes in the market has hurt domestic trade in hot rolled coil (HRC). By this weekend, the exy-Mumbai basis assessment of the domestic HRC (IS2062, Gr-E250, 2.5-8mm) was INR 55,900/t, with a range of INR 55,000-56,000/t, excluding GST at 18%. On the other hand, market sources have been reporting that, on a coil-by-coil basis, imported alternatives are being offered for approximately INR 54,000–54,500/t exy-Mumbai, minus GST.
This year, from July to September, the volumes of bulk HRC and plate imports increased, even though it was a traditionally poor time because of the monsoons. For example, 1.217 million of these were imported during the specified time, compared to 7.947 million in July–September 2022, based on vessel line-up data that SteelMint maintains. Additionally, according to the preliminary report, imports were 526,907 t in October 2023 compared to 235,240 t the month before.
In contrast to the final operating tags for October sales, Indian producers of finished flat steel have rolled over their list price tags for November sales early. But since SteelMint is still looking through the price tags for information, no reporting has been completed as of yet.

According to a company statement released on Friday, November 3, Indian steel manufacturer Tata Steel Limited produced 4.99 million mt of crude steel from its Indian operations during the second quarter (July–September) of the fiscal year 2023–24, up 4% from the previous year.While exports fell 52% year over year to 450,000 mt, total domestic sales were reported at 4.82 million mt during the specified time, nearly the same as in the equivalent quarter of the previous fiscal year.While sales were reported at 1.79 million mt, compared to 1.87 million mt in the same quarter of the previous fiscal year, Tata Steel Europe achieved crude steel output of 1.99 million mt in the July-September quarter, down from 2.40 million mt in the previous fiscal year.

Australian Premium HCC coking coal: In October 2023, the average price of Australian Premium HCC coking coal increased by $50/tonne (t) or 16% month-over-month to $370/tonne (t) CFR India, up from $320/t in September.

High transaction volumes are the cause of the price increase. Additionally, November loading cargoes were hard to come by in the market due to a shortage of Australian supplies. The restricted Russian supply also contributed to the rising pricing.

Indexed port-side ex-Gangavaram pricing for South African RB3 (4800 NAR) rose 9% from INR 8,820/t in September to INR 9,580/t in October. In response, CNF Gangavaram, the same grade of thermal coal, increased 11% to $114/t last month from $103/t in September. Due to difficulties with logistics, prices increased. 

According to a report released on Tuesday by worldsteel, India's steel demand is predicted to grow by a "healthy" 8.6% in 2023 compared to a 1.8% global increase. It predicts that after declining by 3.3% in 2022, the world's steel demand will increase 1.8% and reach 1,814.5 MT in 2023. According to the World Steel Association (worldsteel), the demand will rise by 1.9% to 1,849.1 MT in 2024.

The international organization stated that for India, "after a growth of 9.3 per cent in 2022, steel demand is expected to show healthy growth of 8.6 per cent in 2023 and 7.7 per cent in 2024."

Despite the pressure of a high interest rate environment, the Indian economy is still stable, and the demand for steel is predicted to keep up its rapid growth.

Government spending on infrastructure and a rebound in private investment are the main drivers of growth in India's construction industry. According to Worldsteel's Short Range Outlook (SRO), infrastructure investment will also aid in the growth of the capital goods sector.

The automotive industry will continue to grow steadily. Due to higher inflation and interest rates that limit discretionary spending, the consumer durables sector is the only one that is performing poorly. With holiday spending and advancements in the Production Linked Investment (PLI) schemes, it will, according to the report, improve in 2024.

According to managing director Abhyuday Jindal, Jindal Stainless Ltd. expects exports to increase starting in the March quarter thanks in part to orders from customers in the US and Europe. In the September quarter, the company's exports decreased to 13% of its total sales, down from 17% a quarter earlier.

"Europe and the US have not recovered as anticipated, but we anticipate the export numbers to improve starting in Q4 due to restocking once they return from the year-end holidays," Jindal said in a statement to ET.

The company expects the average for the entire year to be in the range of 15-17%, with exports accounting for 20% of sales in the March quarter.

The company is also looking into newer markets for exports due to the increased dumping of stainless steel in India, which is hurting domestic producers. South Korea, the Middle East, and South America are a few of these. Jindal stated, "We are attempting to have a larger presence there.

On Thursday, the company released its financial results for the September quarter. Thanks in large part to strong domestic demand, its consolidated net profit increased by more than a year's worth to Rs. 764 crore.

Tata Steel Long Products Ltd. announced on Thursday that the National Company Law Tribunal (NCLT) had given its approval for the company to be merged with Tata Steel Ltd. Tata Steel will combine itself with Tata Steel Long Products and six other subsidiaries.

Tata Steel Long Products claimed in a regulatory filing that the NCLT's Cuttack bench had approved the plan to merge the business with Tata Steel on October 18.

T V Narendran, the CEO and MD of Tata Steel, had previously stated that the merger of the subsidiary companies with itself is anticipated to be finished in 2023–2024.

Tata Steel Long Products, The Tinplate Company of India, Tata Metaliks, TRF, Indian Steel & Wire Products, Tata Steel Mining, and S&T Mining Company are the subsidiaries that will be merged with Tata Steel.

The India Steel Composite Index from SteelMint was evaluated lower for the week ending October 21, 2023, scoring 147.5 points as opposed to 148.7 points during the previous week. The index fell 0.8% weekly.

This week, both sub-indices were down, suggesting a gloomy market outlook. In comparison to the Steel Long Composite Index, which fell a sharper 1% w-o-w to 142.7 points from 144 points, the Flat Steel Composite Index's 0.7% decline to 152.5 points from 153.5 points was slower.

1. The cost of blast furnace (BF) route rebar has decreased at the trade level due to a lack of demand in the domestic market. On October 20, prices in the trade segment dropped by INR 800/t ($10/t) week over week to INR 57,200/t ($688/t) exy-Mumbai. End users, particularly those involved in projects, only make purchases based on their immediate needs because there is a shortage of labor during the holiday season, which has an adverse effect on construction activity. The average price of IF rebar decreased by INR 600/t ($7/t) week over week to INR 50,700/t ($610/t) ex-Mumbai due to weak demand, a sluggish pace of trade, and a decline in the cost of billet and sponge iron. According to sources, since the start of October, price volatility and liquidity problems have caused the inventory cycle to slow down.

2. The Israel-Hamas conflict has a negative impact on Turkiye's steel exports to Israel. Israel relies heavily on imports, purchasing about 2 million tons of finished steel from abroad each year, the majority of it from Turkiye. Turkish long steel exports have suffered, which has had a negative impact on ferrous scrap prices worldwide because Turkiye is the main seaborne buyer and price-setter. According to SteelMint data, the price of imported melting scrap into Turkiye has decreased from $374/t CFR on 2 October to $355/t CFR today. This naturally affects the price of long-term steel globally. Reduced scrap prices are putting pressure on India's domestic sponge iron prices, which has a negative effect on rebar prices.

a) Lower HRC prices in the market for traders: In important markets, trade-level HR coil prices have decreased by about INR 400–600/t ($5-7/t). An increase in domestic supplies appears to be the main cause. India's exports of flat steel fell by more than 40% month-over-month in August to 0.34 mnt, and September volumes were still lower. Even though there is still strong domestic demand, there is less demand globally, and Chinese offers are more affordable. In the EU, domestic steel costs are less expensive than imports. Due to higher domestic realisations, mills have been delaying export offers to Southeast Asia and the Middle East for more than a month. Consequently, supplies to the domestic market have grown.

Again, the primary mills raised their list prices in October, but lower-than-expected imports of HRC from China and South Korea led to pressure on domestic trade prices even as supplies in the market increased. According to preliminary data from SteelMint, although still significantly less than August, steel imports in the first 16 days of October already exceeded total volumes in September to reach about 280,000 t. Due to recently reiterated BIS licensing requirements for all imports by the Steel Ministry, delivery of some cargoes must be delayed. Therefore, even though imports will eventually decline, domestic supplies through imports may increase in the short term.

Outlook

The outlook for domestic steel prices is uncertain, and industry trends on a global scale will probably have an impact. In September, China's steel production fell by 5% month over month to about 82 mnt. It is anticipated that Chinese crude steel production will decline year over year in Q4CY23 as the winter production cuts take effect. Therefore, Chinese steel exports will also decline in Q4, which will help support domestic and international steel prices.

However, the Israeli-Palestinian conflict could worsen and spread to other nearby countries, which would have an effect on the energy and commodities markets. Geopolitical risks thus continue to have an impact on the price and market for steel.

Every Friday at 18:30 IST, the India Steel Composite Index is evaluated on a weekly basis.

SteelMint takes into account the Composite Index, which has a base value of 100 and a base year of 3 January 2020 (the financial year 2019–2020). The Composite Index provides a market trend rather than an absolute price. The BF-BOF and electric/induction furnace routes make up the bulk of the Indian steel industry's divisions. SteelMint suggests releasing the Composite Index for India while taking into account both production routes according to manufacturing capacity and the production-weighted method.

Jindal Stainless Ltd, under the leadership of Managing Director Abhyuday Jindal, foresees an upturn in its export figures commencing in the upcoming March quarter. This improvement is expected to be driven by firm orders received from clients based in the United States and Europe. In the September quarter, the company experienced a decline in its export contribution, which dropped from 17% in the preceding quarter to 13% of its total sales.

Jindal expressed, "Although Europe and the US have not rebounded as initially anticipated, we are optimistic about a favorable shift in export numbers in the fourth quarter. This optimism arises from expectations of increased demand as clients resume restocking post their year-end holiday periods."