News

Bhander, a natural gas-based thermal plant with an installed capacity of 500 MW, will remain captive to AM/NS India’s steel manufacturing operations at Hazira. The size of the deal was not immediately disclosed but it is understood to be around Rs 500 crore. 

ArcelorMittal Nippon Steel India (AM/NS India) on Tuesday announced that it has completed the acquisition of Bhander Power Plant in Hazira, Gujarat from EdelweissNSE 0.54 % Asset Reconstruction Company. Bhander, a natural gas-based thermal plant with an installed capacity of 500 MW, will remain captive to AM/NS India’s steel manufacturing operations at Hazira. The size of the deal was not immediately disclosed but it is understood to be around Rs 500 crore. 

Bhander, which was commissioned in 2006 and commenced commercial operations in 2008, was purchased by AM/NS India under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, an official statement said. 


ArcelorMittal, the world’s biggest steelmaker, had has completed the acquisition of Essar Steel IndiaNSE 0.00 % Limited (ESIL) in December last year, which at Rs 42,000 crore is also the largest stressed-asset deal to be closed in the country. It also announced the establishment of a joint venture, with Nippon Steel Corporation, called ArcelorMittal Nippon Steel India Limited (AM/NS India), which will own and operate Essar Steel.

The announcement of the acquisition of Bhander Power Plant comes days after ArcelorMittal India Private Limited (AMIPL) said it was selected as a preferred bidder for an iron ore mine license in Odisha following an auction process facilitated by the state government. “The Thakurani block in Odisha’s Keonjhar district has estimated reserves of 179.26 million tonne of ore and is expected to make a valuable contribution to AM/NS India’s long-term raw material requirements,” the statement added. On conclusion of the license award process, AMIPL will proceed to seek requisite clearances, as well as mine development and production agreements, ahead of commencing mining operations, the statement further added. 

Commenting on the developments, Dilip Oommen, CEO of AM/NS India, said: “We are pleased to have acquired these important ancillary assets for our steelmaking facilities. This is in line with an intent to secure a robust captive power and commodity supply chain as we continue to make strong strides in our production and operational performance.” He added that efforts to become increasingly self-reliant, in this case through the procurement of a key energy source in Gujarat and an iron ore rich reserve in Odisha, form “part of AM/NS India’s medium to long term strategy to significantly grow our production capacity in India.”

Read More

India’s core sector expanded 2.2% in January, a mild increase from 2.1% in December, data released by the commerce and industry ministry showed on Friday. The eight infrastructure industries grew 1.5% in January last year. 

Economic Affairs Secretary Atanu Chakraborty said growth in core sector industries during December and January “augurs well” for the manufacturing sector in the January-March quarter of the ongoing fiscal year. 

The government also revised upward core sector growth in December to 2.1% from 1.3% earlier due to revisions in the output of coal, steel and electricity. “The core sector data for January 2020 offers mixed cues but the growth in output for the second consecutive month, after four months of contraction, offers some encouragement,” said Aditi Nayar, principal economist at ICRA. The eight core industries comprise 40.27% of the Index of Industrial Production (IIP). The growth was aided by increased .. 

“Based on the core sector growth, IIP is expected to grow by 2-3% for January. We are expecting IIP to grow by 2% for FY20,” said Madan Sabnavis, chief economist at CARE Ratings. Factory output contracted 0.3% in December. The statistics office will release the IIP data for January on March 12. Coal production touched a 10-month high of 8%. Electricity generation was up 2.8% in January. In the April-January period, core industries growth slowed down to 0.6% against 4.4% in the yearago period. 

Output of crude oil, natural gas, and fertiliser contracted 5.3%, 9.1% and 0.1%, respectively in January. Refinery products, which have the highest weightage in the eight core industries, grew 1.9% in January, as against a contraction of 2.6% in the comparable month last year. “It can partly be ascribed to the increased production of BS-VI fuel by refiners to meet the upcoming demand ahead of the implementation of BS-VI norms from April,” Sabnavis added. Fertilisers production declined for the first time in the past eight months. Crude oil production has been declining for more than two years. 

Read More

“This order may be called the Steel and Steel Products (Quality Control) Order, 2019. It shall come into force on the date of its publication in the Official Gazette. It shall apply to steel and steel products except for steel and steel products for export which conform to any other specification required by a foreign buyer,” said the order dated 22nd July 2019. 

Indian steel manufacturers might face a slight glitch in the supply of Ferro Silicon, one of the key raw materials for steel-making, as the Ministry of Steel has passed an order in the month of February to include the alloy under mandatory certification by April 2020. 

“This order may be called the Steel and Steel Products (Quality Control) Order, 2019. It shall come into force on the date of its publication in the Official Gazette. It shall apply to steel and steel products … except for steel and steel products for export which conform to any other specification required by a foreign buyer,” said the order dated 22nd July 2019. 

While the order was dated 22nd July 2019, companies in Bhutan and Norway and other countries, major suppliers of Ferro Silicon, came to know about it around February 20th, said the companies in an interaction. “It was communicated late and we also missed it as it came under the name steel and steel products. They usually come under ferroalloys,” said Kári Marís Gudmundsson, Global Sales Manager, Elkem Ferrosilicon from Norway. 

Ferro Silicon is an alloy used by the steel-makers to increase the performance of steel as an industrial material. It de-oxidizes the steel, blocks the heat and prevents loss of carbon from the molten steel. Ferro Silicon prices in the market was between Rs 60,000 - Rs 65,000 per tonne during December and March and went up to Rs 90,000 per tonne on the back of China's coronavirus impact. 

India imports around 300,000 tonnes of Ferro Silicon from various countries like Bhutan, Norway and China every year and out of which only 1/3 rd is manufactured in India. If the deadline is not extended, the steel companies might have a shortage of Ferro Silicon, said Kari. 

“To make 1 MT of steel, the companies need 600 tonnes of Silicon. Even though it’s a small number it is important”, said IQ Minerals and Metals CEO, Siddharth Bothra. 

Read More

In mid-February 2020, inventories of 5 major steel products totally achieved 17.35 million tons( increase of 2.64 million tons,17.9% than early of Feb), and an increase of 9.23 million tons or 113.7% than inventories of January 2020
 


In January 2020, the world ’s crude steel output was 154.4 million tons, China's crude steel output in January 2020 was 84.3 million tons. India ’s crude steel output in January was 9.3 million tonnes. Japan ’s crude steel output in January was 8.2 million tons. South Korea's January crude steel output was 5.8 million tons.

Read More

High inventory superfluous demand is sluggish, which has formed a downward pressure on steel prices. Although most of the domestic steel market has not yet started, according to current market prices, traders' winter storage of steel is basically in a state of floating losses, and some steel mills are approaching the edge of loss.

As per current scenerio, Steel prices are going down but iron ore price is going up. 
For example, on Feb 21st, steel bar price is RMB3485 per ton, but Imported iron ore price is going up (USD90.81 for 62% iron ore on Feb 21st)

Because of the weak market, all the plant has reduced the production, and more and more steel plants are going for shutdown

Read More

 

INDIAN STEEL INDUSTRY REPORT

(DECEMBER, 2019)

Introduction

India was the world’s second-largest steel producer@ with production standing at 106.5 MT in 2018. The growth in the Indian steel sector has been driven by domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India’s manufacturing output. India’s steel production capacity has expanded to 137.975 million tones in FY19. As of 2018, India is the world’s second largest producer of crude steel (up from eighth spot in 2003).

The Indian steel industry is very modern with state-of-the-art steel mills. It has always strived for continuous modernisation and up-gradation of older plants and higher energy efficiency levels.

Indian steel industries are classified into three categories such as major producers, main producers and secondary producers.

Market Size

India’s finished steel consumption grew at a CAGR of 5.69 per cent during FY08-FY18 to reach 90.68 MT. India’s crude steel and finished steel production increased to 106.56 MT and 131.57 MT in 2018-19, respectively. In FY20 (till November 2019), crude steel and finished steel production stood at 73.17 MT and 67.52 MT respectively.

During 2018-19, 6.36 MT of steel was exported from India. Exports and imports of finished steel stood at 5.75 MT and 5.07 MT, respectively, in FY20P (up to November 2019).

Investments

Steel industry and its associated mining and metallurgy sectors have seen a number of major investments and developments in the recent past.

According to the data released by Department for Promotion of Industry and Internal Trade (DPIIT), the Indian metallurgical industries attracted Foreign Direct Investments (FDI) to the tune of US$ 11.38 billion in the period April 2000–June 2019.

Some of the major investments in the Indian steel industry are as follows:

  • For FY2019-20, JSW Steel set a target of supplying around 1.5 lakh tonne of TMT Rebars to metro rail projects across the country.
  • In October 2019, Kamdhenu Ltd added new production capacity of 60,000 tonne per annum in Dadri, Uttar Pradesh to manufacture Kamdhenu Structural Steel.
  • As of December 2018, Vedanta Group is going to set up a one million tonne capacity steel plant in Jharkhand with an investment of Rs 22,000 crore (US$ 3.13 billion).
  • JSW Steel will be looking to further enhance the capacity of its Vijayanagar plant from 13 MTPA to 18 MTPA. In June 2018, the company had announced plans to expand the plant’s production capacity to 13 MTPA by 2020 with an investment of Rs 7,500 crore (US$ 1.12 billion).
  • Vedanta Star Ltd has outbid other companies to acquire Electrosteel Steels for US$ 825.45 million.
  • Tata Steel won the bid to acquire Bhushan Steel by offering a consideration of US$ 5,461.60 million.
  • JSW Steel has planned a US$ 4.14 billion capital expenditure programme to increase its overall steel output capacity from 18 million tonnes to 23 million tonnes by 2020.
  • In March 2019, ArcelorMittal was declared as the winning bidder to acquire Essar Steel for a consideration of Rs 42,000 crore (US$ 5.82 billion).
  • Tata Steel has decided to increase the capacity of its Kalinganagar integrated steel plant from 3 million tonnes to 8 million tonnes at an investment of US$ 3.64 billion.

Government Initiatives

Some of the other recent government initiatives in this sector are as follows:

  • Government introduced Steel Scrap Recycling Policy aimed to reduce import.
  • An export duty of 30 per cent has been levied on iron ore^ (lumps and fines) to ensure supply to domestic steel industry.
  • Government of India’s focus on infrastructure and restarting road projects is aiding the boost in demand for steel. Also, further likely acceleration in rural economy and infrastructure is expected to lead to growth in demand for steel.
  • The Union Cabinet, Government of India has approved the National Steel Policy (NSP) 2017, as it seeks to create a globally competitive steel industry in India. NSP 2017 envisages 300 million tonnes (MT) steel-making capacity and 160 kgs per capita steel consumption by 2030-31.
  • The Ministry of Steel is facilitating setting up of an industry driven Steel Research and Technology Mission of India (SRTMI) in association with the public and private sector steel companies to spearhead research and development activities in the iron and steel industry at an initial corpus of Rs 200 crore (US$ 30 million).
  • The Government of India raised import duty on most steel items twice, each time by 2.5 per cent and imposed measures including anti-dumping and safeguard duties on iron and steel items.

Road ahead

The National Steel Policy, 2017, has envisaged 300 million tonnes of production capacity by 2030-31. The per capita consumption of steel has increased from 57.6 kg to 74.1 kg during the last five years. Further, India is expected to surpass USA to become the world’s second largest steel consumer in 2019*.

As per Indian Steel Association (ISA), steel demand to grow by over 7.2 per cent in both 2019-20 and 2020-21.

Huge scope for growth is offered by India’s comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors.

Note: Conversion rate used as on September 2019, Re 1 = US$ 0.014019

References: Media reports, Press releases, Press Information Bureau (PIB), Joint Plant Committee (JPC)

Note: @ - Behind China, ^Except low grade (below 58 per cent, *according to World Steel Association

Disclaimer: This information has been collected through secondary research and IBEF/khuljasimsim is not responsible for any errors in the same.

Read More

Imports of coking and other coal recorded a rise of 1.10 per cent at 47.08 MT during the period

Thermal coal imports at the country's 12 major ports declined 14.98 per cent to 74.60 million tonnes (MT) during April-January this fiscal, as per a report by the Indian Ports Association.

The Centre-owned ports had handled 87.74 MT of the dry fuel in the same period of the previous year.

The Indian Ports Association (IPA), which maintains cargo data handled by these 12 ports, in its report said "percentage variation from previous year" in thermal coal handling was at 14.98 per cent.

Imports of coking and other coal recorded a rise of 1.10 per cent at 47.08 MT during the period. These ports had handled 46.57 MT of coking coal in the corresponding period last fiscal.

Thermal coal is the mainstay of India's energy programme as 70 per cent of power generation is dependent on the dry fuel, while coking coal is used mainly for steel-making.

India is the third-largest producer of coal after China and the US and has 299 billion tonnes of resources and 123 billion tonnes of proven reserves, which may last for over 100 years.

India has 12 major ports -- Kandla, Mumbai, JNPT, Marmugao, New Mangalore, Cochin, Chennai, Kamarajar (Ennore), V O Chidambarnar, Visakhapatnam, Paradip and Kolkata (including Haldia) which handle approximately 61 per cent of the country's total cargo traffic.

These ports recorded a marginal 1.14 per cent growth in total cargo volumes at 585.72 MT during April-January period of the current fiscal.

The ports had handled 579.10 MT of cargo during the corresponding period of the last fiscal.

While the handling of thermal coal shipments declined 14.98 per cent to 74.60 MT, iron ore saw 39.02 per cent jump to 45.05 MT during the period, the IPA data showed.

The 12 ports had handled 32.37 MT of iron ore during April-January period of the previous fiscal.

Finished fertiliser volumes jumped 21.55 per cent but raw fertiliser volumes dipped 2.80 per cent.

Containers recorded a growth of 2.65 per cent in terms of TEUs (twenty-foot equivalent units).

According to the figures, Deendayal port handled the highest traffic volume at 101.96 MT during April-January 2019-20, followed by Paradip at 93.38 MT, Visakhapatnam at 60.73 MT, JNPT at 56.64 MT, Kolkata (including Haldia) at 53 MT, and Mumbai at 51.34 MT.

Chennai port handled 39.80 MT of cargo, while New Mangalore handled 30.91 MT.

The volume of seaborne cargo is essentially in the nature of derived demand and is mainly shaped by the levels and changes in both global and domestic activity.

Read More

Coal allocation for spot online auction falls 8.19% in Apr-jan. State-owned CoalIndia allocated 24.87 million tonnes of dry fuel for the spot electronic auction (e-auction) during April-january, down by 8.19 per cent over the same period of last year.

State-owned Coal India allocated 24.87 million tonnes of dry fuel for the spot electronic auction (e-auction) during April-january, down by 8.19 per cent over the same period of last year.

Read More

The illegal mining has caused many accidental deaths and also contributed to worsening of law and order in many pockets of the coal field but the genesis of the problem and its solution have seldom been thought of.

The problems of coal mafia and illegal mining in coalfields of West Bengal frequently crop up in the media and these were even mentioned by the Prime Minister during electioneering in the coal belt. The illegal mining has caused many accidental deaths and also contributed to worsening of law and order in many pockets of the coal field but the genesis of the problem and its solution have seldom been thought of. Recently I undertook a two-day visit to my village situated in the heart of the Ranigunje coalfield with at least half a dozen coal mines located within four kilometres of my village home.

I was told that two of these mines have been closed by Eastern Coalfields Ltd (ECL), a subsidiary of Coal India Ltd. ECL, an ideal labour-friendly organisation, would of course not retrench any labour and employee but would only shift them to different locations. As a man knowledgeable about coal industry in general and ECL in particular, I could appreciate that ECL in not too distant future would have to close a significant number of mines. The presence of coal around Ranigunje was discovered by two young British ng men John Sumer and Heatley in 1774, but organised coal mining could only be started during the second and third decades of the nineteenth century.

A number of British and Indian companies started operating coal mines in and around Ranigunje and Asansol. Prince Dwarokanath Tagore, grandfather of Rabindranath was one of the early entrepreneurs though subsequently he sold his share to an English Company. At the dawn of nationalization in 1973, collieries in West Bengal produced 19.2 million tonnes of coal which was around 26 per cent of all India production of 72.9 million tonnes and directly employed 1.23 lakh workers – 26 per cent of all India employment. Since nationalisation of coal mines in 1973, national coal production has increased to 735 million tonnes by 2018-19 – but West Bengal produces less than 5 per cent of national production.

The decline in coal mining activities in West Bengal had come for inevitable economic and strategic reasons. Mining activities in West Bengal coal mines got naturally restricted as the mines have become deeper, problematic and in many mines there were insufficient reserves for large-scale intensive mechanisation. With the existing high wage structure of coal miners, the nationalised coal industry had to switch over to large-scale, highly-mechanised opencast mining with a high productivity of around 8 to 10 tonnes per worker from which it now gets more than ninety per cent of its production.

But during almost two hundred years of mining, the areas of Ranigunje coalfield became highly built up and there are very few large vacant areas where large-scale, highly-mechanised opencast projects may be initiated. At the same time many underground old mines became too problematic and mining became very costly. The reserve was insufficient for high degree of mechanisation which definitely was needed as wages had become high and higher productivity was essential for economic reasons. Many underground mines and some small open cast mines have been closed for economic considerations and there are quite a number waiting their turn.

The number of workers employed consequently has decreased. The abandoned mines with some reserves which are easily approachable and existence of man power conversant with coal mining have given ideas to some persons to extract the easily approachable reserve in abandoned mines. The implementation of the idea would necessarily require money, some local influence and perhaps some muscle power also. No coal can be extracted from an abandoned mine unless there is local support or at least silence. The existence of these factors in coal fields of West Bengal have given rise to the coal mafia and illegal coal mining with frequent deaths.

At the same time, the state does get the benefit of cess and royalty from coal produced illegally. The situation may be radically altered if the Central and state governments can take a courageous decision to make mining in abandoned mines with reasonable reserves legal. Dozens of questions would definitely be hurled at the author of this article for this suggestion, perhaps doubting his mental stability and understanding of the situation. Some of these questions are – if it can be legally and safely mined, why did Coal India Ltd stop mining? Would these mines be safe and economically feasible?

I would like to answer these questions. First, Coal India Ltd abandoned many of these mines because with its wage structure, it was uneconomical to run small mines with low reserves and low productivity of around 0.6 tonnes of coal per man shift (OMS). These small mines would also not fit with Coal India’s strategy of getting maximum output from mechanised, open casting with productivity of around 8 to 10 tonnes of coal per man shift and remaining coal from mechanised under ground operation. The abandonment by Coal India of these mines and their closure does not mean that these mines cannot be operated economically and safely.

The Republic of China, the largest producer of coal in the world was operating a large number of very small mines managed by the District Councils a few years back and perhaps even now some of them may be in operation. I am quite conscious that safety record of these mines was dismal but that was the result of laxity in safety legislation of China and its indifferent implementation. Let me give some other facts from the Indian Coal Industry. In late 1950s and early sixties, I came across small coal mines producing around 100 tonnes per day being operated legally and safely.

These mines conformed to very stringent Indian Coal Mines Safely legislation and were under strict scrutiny of the office of Government of India’s Directorate General of Mines Safety – an organisation comparable to similar organisation any where in the world. It has to be admitted that these mines to remain economic would not be able to pay wages as per Coal India’s wage structure but they would be able to pay three times the minimum wage rate under MGNRES. These mines would have to be managed by Zila Parishads with involvement of Panchayat Samity.

This would have to be planned scientifically and coal produced may be used locally. To make the whole process legal, Coal India may transfer these mines on long-term lease to Zila Parishads which may then work these with the help of consultants and contractors. There may be some abandoned mines which cannot be worked even as small mines. These may also be transferred on lease to Zila Parishads for protection from illegal exploitation by coal mafia. Coal India of course would have to pay some nominal fee to local Panchayats for the purpose. The High Court of Calcutta recently ordered the West Bengal Government to appoint an officer with sufficient executive powers to check illegal mining. The job of the officer would be easier if local bodies were also involved in eliminating illegal mining.

 

 

 

Read More

The illegal mining has caused many accidental deaths and also contributed to worsening of law and order in many pockets of the coal field but the genesis of the problem and its solution have seldom been thought of.

The problems of coal mafia and illegal mining in coalfields of West Bengal frequently crop up in the media and these were even mentioned by the Prime Minister during electioneering in the coal belt. The illegal mining has caused many accidental deaths and also contributed to worsening of law and order in many pockets of the coal field but the genesis of the problem and its solution have seldom been thought of. Recently I undertook a two-day visit to my village situated in the heart of the Ranigunje coalfield with at least half a dozen coal mines located within four kilometres of my village home.

I was told that two of these mines have been closed by Eastern Coalfields Ltd (ECL), a subsidiary of Coal India Ltd. ECL, an ideal labour-friendly organisation, would of course not retrench any labour and employee but would only shift them to different locations. As a man knowledgeable about coal industry in general and ECL in particular, I could appreciate that ECL in not too distant future would have to close a significant number of mines. The presence of coal around Ranigunje was discovered by two young British ng men John Sumer and Heatley in 1774, but organised coal mining could only be started during the second and third decades of the nineteenth century.

A number of British and Indian companies started operating coal mines in and around Ranigunje and Asansol. Prince Dwarokanath Tagore, grandfather of Rabindranath was one of the early entrepreneurs though subsequently he sold his share to an English Company. At the dawn of nationalization in 1973, collieries in West Bengal produced 19.2 million tonnes of coal which was around 26 per cent of all India production of 72.9 million tonnes and directly employed 1.23 lakh workers – 26 per cent of all India employment. Since nationalisation of coal mines in 1973, national coal production has increased to 735 million tonnes by 2018-19 – but West Bengal produces less than 5 per cent of national production.

The decline in coal mining activities in West Bengal had come for inevitable economic and strategic reasons. Mining activities in West Bengal coal mines got naturally restricted as the mines have become deeper, problematic and in many mines there were insufficient reserves for large-scale intensive mechanisation. With the existing high wage structure of coal miners, the nationalised coal industry had to switch over to large-scale, highly-mechanised opencast mining with a high productivity of around 8 to 10 tonnes per worker from which it now gets more than ninety per cent of its production.

But during almost two hundred years of mining, the areas of Ranigunje coalfield became highly built up and there are very few large vacant areas where large-scale, highly-mechanised opencast projects may be initiated. At the same time many underground old mines became too problematic and mining became very costly. The reserve was insufficient for high degree of mechanisation which definitely was needed as wages had become high and higher productivity was essential for economic reasons. Many underground mines and some small open cast mines have been closed for economic considerations and there are quite a number waiting their turn.

The number of workers employed consequently has decreased. The abandoned mines with some reserves which are easily approachable and existence of man power conversant with coal mining have given ideas to some persons to extract the easily approachable reserve in abandoned mines. The implementation of the idea would necessarily require money, some local influence and perhaps some muscle power also. No coal can be extracted from an abandoned mine unless there is local support or at least silence. The existence of these factors in coal fields of West Bengal have given rise to the coal mafia and illegal coal mining with frequent deaths.

At the same time, the state does get the benefit of cess and royalty from coal produced illegally. The situation may be radically altered if the Central and state governments can take a courageous decision to make mining in abandoned mines with reasonable reserves legal. Dozens of questions would definitely be hurled at the author of this article for this suggestion, perhaps doubting his mental stability and understanding of the situation. Some of these questions are – if it can be legally and safely mined, why did Coal India Ltd stop mining? Would these mines be safe and economically feasible?

I would like to answer these questions. First, Coal India Ltd abandoned many of these mines because with its wage structure, it was uneconomical to run small mines with low reserves and low productivity of around 0.6 tonnes of coal per man shift (OMS). These small mines would also not fit with Coal India’s strategy of getting maximum output from mechanised, open casting with productivity of around 8 to 10 tonnes of coal per man shift and remaining coal from mechanised under ground operation. The abandonment by Coal India of these mines and their closure does not mean that these mines cannot be operated economically and safely.

The Republic of China, the largest producer of coal in the world was operating a large number of very small mines managed by the District Councils a few years back and perhaps even now some of them may be in operation. I am quite conscious that safety record of these mines was dismal but that was the result of laxity in safety legislation of China and its indifferent implementation. Let me give some other facts from the Indian Coal Industry. In late 1950s and early sixties, I came across small coal mines producing around 100 tonnes per day being operated legally and safely.

These mines conformed to very stringent Indian Coal Mines Safely legislation and were under strict scrutiny of the office of Government of India’s Directorate General of Mines Safety – an organisation comparable to similar organisation any where in the world. It has to be admitted that these mines to remain economic would not be able to pay wages as per Coal India’s wage structure but they would be able to pay three times the minimum wage rate under MGNRES. These mines would have to be managed by Zila Parishads with involvement of Panchayat Samity.

This would have to be planned scientifically and coal produced may be used locally. To make the whole process legal, Coal India may transfer these mines on long-term lease to Zila Parishads which may then work these with the help of consultants and contractors. There may be some abandoned mines which cannot be worked even as small mines. These may also be transferred on lease to Zila Parishads for protection from illegal exploitation by coal mafia. Coal India of course would have to pay some nominal fee to local Panchayats for the purpose. The High Court of Calcutta recently ordered the West Bengal Government to appoint an officer with sufficient executive powers to check illegal mining. The job of the officer would be easier if local bodies were also involved in eliminating illegal mining.

 

 

 

Read More

ArcelorMittal continues to believe "it’s eligible" and has transferred the money to “show its commitment to India and Essar Steel,” sources told Moneycontrol.

Prince Mathews Thomas@prince0879

   

ArcelorMittal has transferred Rs 7,000 crore to an SBI escrow account, as it looks to clear dues of Uttam Galva Steels and with it the eligibility hurdle in its bid for Essar Steel.

ArcelorMittal continues to believe "it’s eligible"  and has transferred the money to “show its commitment to India and Essar Steel.”

"ArcelorMittal can confirm it has written to the Committee of Creditors (CoC) for Essar Steel India Limited (ESIL) in response to the letter received on May 8, 2018.  The details of this letter are confidential.  However, ArcelorMittal maintains that its offer for Essar Steel, submitted on February 12, is and always has been eligible," a statement from ArcelorMittal said.

"Any offer to pay any outstanding loans of companies where we only had a passive stake with no management or governance role, would be made without prejudice to demonstrate the seriousness of our commitment to India and ESIL.  We continue to believe that a swift resolution is in the best interests of ESIL and its stakeholders, including its employees who deserve a strong and certain future," the statement said.

RELATED NEWS

On May 14 Moneycontrol had reported that ArcelorMittal has written to Essar Steel lenders, for the first time indicating that it may pay off dues of Uttam Galva Steels to clear the eligibility hurdle.

"Yes, ArcelorMittal has written to all the banks asking the due amount required to clear their name," a source had said on condition of anonymity.

"They've also maintained that they are not 'legally obligated' to pay but will clear off the dues as a goodwill gesture," the source had said.

With the dues paid, and the eligibility hurdle cleared, ArcelorMittal will emerge as the higher bidder as the company had bid more than Numetal in the first round of auction.

Late April, it had emerged that ArcelorMittal had offered Rs 32,000 crore for Essar Steel, while VTB Bank-led Numetal had bid Rs 18,000 crore.

 

The lenders may wait for the NCLAT hearing on May 17, where both the bidders have challenged their disqualification, before taking a final call

Read More

Steel News - Published on Thu, 10 May 2018

jspl-q4result_5006.jpgImage Source: Odisha Time

JSPL Standalone Steel production rose 38% in the reported quarter to 1.26 million tonnes (0.91 million tonnes in 4QFY17) while Standalone Steel sales during 4QFY18 increased to 1.18 million tonnes (up 29% YoY). The rise in sales realizations was partly offset by the corresponding increase in raw material prices with EBITDA in 4QFY18 increasing by 66% YoY to Rs. 1,519 Cr. The Company reported an expansion in the EBITDA margins, at 26% as compared to the last quarter (22%). The quarter marked JSPL’s turnaround back to profits after 13 successive quarters, reporting a Profit After Tax at INR 145 crore as compared to a Loss of INR 74 crore last quarter and a loss of INR 116 crore last year.

During 4QFY18, production of pellets increased by 15% YoY to 1.84 million tonnes and the company achieved external sales of pellets of 0.74 MT during 4QFY18.

The quarter also saw JSPL coming out with its first ever equity raise in the markets, garnering INR 1,200 Cr through Qualified Institutional Placement. The issuance was well over-subscribed by marquee investors, both foreign & domestic.

On a full year basis, JSPL standalone Sales turnover in FY18 rose by 13% while EBITDA at INR 3,973 crore increased by 37% compared to the previous year. The EBITDA margins came at 23% as compared to 19% in the previous year, primarily supported by better than expected steel sales realizations.

JSPL Consolidated Performance
The Company achieved a Consolidated Steel Sales of 5.44 million tonnes in FY18, up by 17% Y-o-Y and production of 5.70 million tonnes (Vs. 4.80 million tonnes in FY17). JSPL achieved its highest ever-annual revenue of INR 27,841 crore, which is 23% higher than previous year. The aggregate EBITDA rose by 37% compared to previous year FY17. The overall EBITDA for FY18 stood at 23% vs. 21% for FY17, supported by better operating profits across all its Steel & Power business globally. As of year ended 31st March’2018, JSPL consolidated net debt was at INR 42,000 Cr levels.

Read More

Steel News - Published on Thu, 10 May 2018

bmz_expanded_export_4510.jpgImage Source: Sichim Alfa Srl

According to the operational results of the four months of 2018 OJSC "BSW management company "BMC" holding” exported products for more than USD 384 million, an increase is 36 % by the same period of 2017. In total, more than 596 thousand tonnes of steel products were shipped to foreign consumers.

Since the beginning of the year, BMZ has been able not only to increase exports in physical and money terms, but to expand its presence in the world steel market. Thus, the new 118th country of Guatemala was opened in the general export geography of BMZ, where the shipment of wire rod was carried out. During this period BMZ also entered the market of Denmark and Mali with new types of steel products.

It should be noted that most of the products that were exported in the first quarter of 2018 were sold through an extensive distribution network of the enterprise. For a specified period the markets of Europe, USA and CIS were priority for BMZ.

Source : STRATEGIC RESEARCH INSTITUTE, STEELGURU

Read More

China’s iron and steel market wobbled to find a direction on Thursday as spot trading continued to be dull, although analysts held onto a positive outlook for the world’s largest steelmaking country.

The most-active construction rebar futures on the Shanghai Futures Exchange were little changed in earlier trading. It was down 0.3 percent at 3,583 yuan ($562.67) a tonne, as of 0200 GMT.

Spot steel products extended losses into a fourth session on Wednesday, down 0.4 percent at 4,291.24 yuan a tonne, according to Mysteel consultancy data.

Benchmark Tangshan billet dropped 40 yuan to 3,550 yuan a tonne as traders took a cautious stance amid a tepid market.

“Chinese steel market is returning to a healthy ‘new normal’ as demand in Spring has emerged strong enough to simultaneously absorb increased production as winter restriction concludes ... and will push steel prices back to their February peak and margins to multi-year highs,” said brokerage Jefferies in a note.

Profit margins for rebar-making touched 608 yuan a tonne in April, up more than 40 percent compared with a month ago, Mysteel data showed, while Jefferies had estimated rebar margins to hit a 10-year high of $134 per tonne.

Iron ore futures on the Dalian Commodity Exchange struggled to find a direction, slipping less than 0.5 percent to 470 yuan a tonne.

Benchmark iron ore for delivery to China’s Qingdao port .IO62-CNO=MB fell 0.3 percent to $66.46 a tonne on Wednesday, according to Metal Bulletin.

Dalian’s coke for September delivery climbed 0.2 percent to 2,000 yuan a tonne. The most-traded coking coal futures gained 0.4 percent to 1,238.5 yuan a tonne.

“Seasonal momentum push from downstream demand is waning, while supplies from mills have been increasing. However, with the ongoing supply-side reform and environmental crackdown, output expansion would be restrained and margins could be guaranteed,” said Xu Bo, analyst, Haitong Futures.

 

Source: in.reuters.com

Read More

Japan’s UACJ Corp said on Wednesday it is suspending aluminum buying from Russia’s United Company Rusal because of U.S. economic sanctions on the producer, but the company has found alternative supplies from others.

UACJ, Japan’s major manufacturer of rolled aluminum products, expects its units in the United States to benefit from higher prices of the metal after U.S. imposed import duties on aluminum, a senior company executive said at a press briefing.

“But we are closely watching where Chinese and other aluminum products that were shut from the U.S. market will be headed,” the executive said, citing a risk of them coming to Japan or elsewhere in Asia.

 

Source: reuters.com

Read More

Kamdhenu Commerz , 401 , 4TH FLOOR,

Sector 14, Kharghar, Navi Mumbai,

Maharashtra 410210

Company