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India Becomes Net Steel Importer

India net steel importer amid Chinese surge.

Published

5 months ago

August 26, 2024

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India emerged as a net importer of steel during the April-July period of the current fiscal year, driven by a significant increase in shipments from China, according to a recent report. This shift marks a departure from India’s usual status as a net exporter of steel and underscores the changing dynamics in the global and domestic steel markets.

During the April-July period, India imported a substantial volume of steel, with Chinese shipments playing a dominant role. The surge in Chinese steel imports has been attributed to competitive pricing, which has made it more attractive for Indian buyers. This trend has raised concerns among domestic steel producers, who have been grappling with a slowdown in domestic demand and increasing competition from imports.

The rise in steel imports from China has affected India’s trade balance in the steel sector. Traditionally, India has been a net exporter of steel, leveraging its robust domestic production capabilities. However, the current scenario reflects a shift in market dynamics, where imports have outpaced exports, leading to India becoming a net importer.

The domestic steel industry is facing multiple challenges, including a slowdown in demand from key sectors such as construction and infrastructure, which has contributed to a buildup of inventories. At the same time, global factors, such as economic uncertainty and trade tensions, have impacted the overall demand for steel, influencing both production and trade patterns.

Chinese steel producers, benefiting from lower production costs and excess capacity, have been able to export large quantities of steel at competitive prices. This has allowed them to capture a significant share of the Indian market, putting pressure on domestic producers. The influx of Chinese steel has also raised concerns about the impact on domestic steel prices and profitability.

Industry experts have expressed concerns over the long-term implications of this trend, particularly for the domestic steel industry. The increase in imports could potentially lead to reduced capacity utilization and profitability for Indian steel manufacturers. There are also worries about the potential impact on employment in the steel sector, as well as the broader economic implications.

In response to the rising imports, domestic steel producers may seek government intervention in the form of protective measures, such as anti-dumping duties or import restrictions, to safeguard the industry. However, such measures would need to be carefully calibrated to avoid unintended consequences, such as price hikes for downstream industries that rely on steel as a key input.

The situation also highlights the importance of enhancing the competitiveness of the Indian steel industry. This could involve measures to reduce production costs, improve efficiency, and invest in new technologies. Additionally, boosting domestic demand through infrastructure development and other initiatives could help absorb the increased production and reduce reliance on imports.

The current trend of India being a net steel importer, driven by the surge in Chinese imports, underscores the need for a strategic approach to managing the steel sector. Balancing the interests of domestic producers with the need to maintain a competitive market will be crucial in ensuring the long-term health of the industry.

As India navigates this challenging period, the steel industry will need to adapt to the evolving market conditions. This may involve exploring new markets for exports, improving product quality, and enhancing cost competitiveness. The government’s role in supporting the industry through policy measures and infrastructure development will also be critical in shaping the future of India’s steel sector.

In conclusion, the rise in Chinese steel imports has led to India becoming a net steel importer during the April-July period, signaling a shift in market dynamics. This development presents both challenges and opportunities for the domestic steel industry, which will need to adapt to the changing landscape to maintain its competitiveness and contribute to India’s economic growth.

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Rathi Steel Receives BIS Approval for SS 550 Reinforcement Bars

The approval is granted by the National Standards Body of the Govt of India

Published

10 hours ago

February 4, 2025

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Rathi Steel and Power Limited, a prominent member of the P.C. Rathi Group based in Delhi, has announced a significant milestone in its growth. In a filing pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company revealed that it has received the Bureau of Indian Standards (BIS) license for its SS 550 Reinforcement Bars.

The approval, granted by the National Standards Body of the Government of India, allows Rathi Steel and Power Ltd to use the BIS standards mark on its high-strength deformed stainless steel bars and wires for concrete reinforcement, specifically in the 32 mm diameter category. This certification is a crucial step for the company in enhancing the credibility of its products in the market.

The company further stated that it is actively working on obtaining similar approvals for other diameters and sizes of reinforcement bars to expand its product range and ensure a comprehensive product offering for the construction industry.

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NMDC Shares Rs 700 Bn Capex Plan with Vendors

NMDC’s target of 100 million tonnes by 2030 is inspired by the vision of the National Steel Policy

Published

5 days ago

January 30, 2025

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India’s largest iron ore miner hosted a Vendor Meet in Hyderabad to share the company’s 100 MTPA roadmap with vendors from across the country. NMDC presented its CAPEX plan of Rs 700 billion for the next five years towards augmenting production capacity, building evacuation infrastructure and transforming the digital ecosystem. The public sector company promised ease of doing business and in return solicited speed and quality of the highest order from the partners.

Top brass of NMDC – Amitava Mukherjee, CMD (Additional Charge); Shri V Suresh, Director (Commercial); Shri Vinay Kumar, Director (Technical) and senior officers interacted with the network of contractors, consultants and vendors.

Setting the context for the meet, Amitava Mukherjee said, “This is not business as usual, 100 million tonnes by 2030 is a priority effort for NMDC and a once in a lifetime opportunity towards building a global mining powerhouse. We are looking at a capital expenditure of approximately Rs 700 billion.” He insisted that “our partners in progress should take this early head start, make financial arrangements, build up their resource base, deliver on timelines, and bring nothing
but the best to NMDC.”

The NMDC team laid out in great detail the upcoming infrastructure and innovation projects of the company in three sessions focused on expansion, evacuation, digital intervention and implementation strategies during the meet, followed by interactions with the vendors.

Delivering the closing remarks, the Director (Technical) of NMDC, Shri Vinay Kumar said, “Our vendors have ensured consistent growth, making NMDC a formidable team! However, it must be told that the aspiration now is to achieve more in the next five years than what we have done in six decades. Collective effort for seamless execution is the only way to realise the goal of 100 million tonnes by 2030.”

NMDC’s target of 100 million tonnes by 2030 is inspired by the vision of the National Steel Policy to build raw material security and self-reliance in the iron and steel sector of India.

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Bokaro Steel Plant Expansion to Boost Capacity and Employment

Expansion Plan to Increase Production to 7.55 MTPA

Published

6 days ago

January 29, 2025

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Steel Minister HD Kumaraswamy announced a Rs 200 billion expansion plan for the Bokaro Steel Plant in Jharkhand on Tuesday, aimed at increasing its production capacity from 5.25 million tonnes per annum (MTPA) to 7.55 MTPA. The move is a step toward fulfilling India’s goal of self-sufficiency in steel production as part of the Atmanirbhar Bharat initiative.

The ambitious plan will include the construction of a new 4,500 cubic meter blast furnace, along with facilities such as thin slab casting, direct rolling, a calcining plant, a stamp-charged coke oven battery, and an expanded sinter plant. This overhaul is expected to strengthen India’s steel industry, contributing significantly to the nation’s economic growth and aligning with Prime Minister Narendra Modi’s vision of a 300 MTPA steel industry by 2030.

The expansion is also set to generate significant employment opportunities, including 10,000 indirect jobs and 2,500 permanent positions in the region. Additionally, the plant is making strides in sustainability with the installation of 30 MW of floating solar power and 20 MW of land-based solar power generation.

This expansion reaffirms India’s commitment to technological advancement and self-reliance in steel production, further enhancing the sector’s capacity to meet future demands.