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India’s steel production to surge by 32.9% by 2030

The report highlights that as India aims to scale its steel production capacity.

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India’s crude steel production is projected to grow by 32.9%, reaching over 186 million metric tons (MMt) annually by 2030, according to a report by S&P Global Commodity Insights. The report, titled “India’s Circular Economy Goals: Spotlight on Ferrous Scrap”, emphasises the critical role of ferrous scrap in reducing carbon emissions as the country, the world’s second-largest steel producer, transitions towards more sustainable production methods.
The report highlights that as India aims to scale its steel production capacity to 300 MMt by 2030, the use of ferrous scrap through electric arc furnaces (EAFs) and induction furnaces (IFs) will be crucial in reducing the sector’s reliance on high-emission blast furnace routes. The shift aligns with the government’s target of making ferrous scrap 50% of the steel feedstock by 2047.
S&P Global Commodity Insights has also enhanced transparency in ferrous scrap pricing with daily assessments for Indian containerised shredded scrap starting in June 2024. This move aims to reflect the evolving dynamics in the scrap market as Indian steelmakers increasingly rely on spot trades to secure essential scrap inflows.
“The transition to ferrous scrap is crucial for India’s decarbonisation goals,” the report noted, adding that while domestic scrap supply is growing through shipbreaking and vehicle scrappage programs, imports remain vital. UAE is currently a key supplier, but global competition for ferrous scrap is intensifying.
The report also touched upon the challenges facing India’s steel sector in its circular economy shift. These include global regulatory hurdles like the EU’s Waste Shipments Regulation and the Carbon Border Adjustment Mechanism (CBAM), which may restrict the availability of ferrous scrap exports. Despite these challenges, the report stresses that ferrous scrap will play a pivotal role in India’s efforts to decarbonise its steel industry.
With the steel industry moving towards indexation and global risk management practices, India’s steelmakers are expected to benefit from increased price stability and improved procurement strategies, the report concluded.

Concrete

Adani’s Ambuja Cements Plans Expansion Strategy

Ambuja Cements targets 140 million-tonne capacity.

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Ambuja Cements, a subsidiary of the Adani Group, is actively pursuing an expansion strategy focused on acquisitions to bolster its production capacity to 140 million tonnes. This move is part of a broader ambition to strengthen its position within the cement industry and enhance its market share across various regional markets.

The company’s growth plans include identifying and acquiring complementary businesses that can enhance its production capabilities and operational efficiency. With the increasing demand for cement driven by ongoing infrastructure development projects in India, Ambuja Cements aims to capitalize on this momentum through strategic investments.

Adani’s emphasis on sustainability is expected to play a critical role in this expansion. The company is committed to adhering to high environmental standards, ensuring that its operations contribute positively to the community while minimizing the ecological footprint. This focus on innovation and sustainable practices will not only improve profitability but also position Ambuja as a leader in responsible manufacturing within the cement sector.

The competitive landscape of the cement industry is evolving rapidly, with numerous players vying for market dominance. By increasing its production capacity, Ambuja Cements aims to navigate these industry trends effectively and solidify its role as a key player in the market.

In summary, Ambuja Cements is set on a growth trajectory with its sights set on achieving 140 million tonnes in capacity through calculated acquisitions and a commitment to sustainable practices. This strategy reflects a robust response to the rising demand for cement in the context of India’s infrastructure push, promising to enhance both the company’s profitability and its market standing in the long term.

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Ambuja Cements’ net profit falls 52% in Q2 FY25

The company recorded 9% YoY increase in sales in Q2 FY25.

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Ambuja Cements, a part of the Adani Group, reported a 52.10% decline in net consolidated profit for the quarter ending September 30, 2024. The profit after tax stood at Rs 4.72 billion, down from Rs 9 .87 billion in the same period last year, according to the company’s filing with the Bombay Stock Exchange (BSE).

The company’s total consolidated income for Q2 FY25 was Rs 78.90 billion, slightly lower than the Rs 78.99 billion recorded in the corresponding quarter of the previous fiscal.

Ajay Kapur, the company’s CEO and Whole-time Director, commented, “Following the successful completion of the Orient Cement transaction, we are on track to achieve a 100+ MTPA capacity by the end of this fiscal year.”

Ambuja Cements reported an increase in net worth by Rs 4.5 billion during the quarter, bringing it to Rs 599.16 billion. The company remains debt-free and maintains its CRISIL AAA (Stable) / CRISIL A1+ ratings. As of September 30, 2024, cash and cash equivalents stood at Rs 101.35 billion.

The company recorded a 9% year-on-year increase in sales volume, reaching 14.2 million tonnes in Q2 FY25.

During the quarter, Ambuja Cements invested Rs 22 billion by subscribing to 8% non-convertible cumulative redeemable preference shares (RPS) issued by its subsidiary, Sanghi Industries.

Additionally, the company announced a binding agreement to acquire a 46.8% stake in Orient Cements at an equity value of Rs 81 billion, solidifying its expansion strategy.

(ET)

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Masdar, EMSTEEL complete MENA’s first green hydrogen steel project

It is a pilot project, demonstrating the use of green hydrogen in steelmaking.

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Masdar and EMSTEEL recently completed the first pilot project in the Middle East and North Africa to produce green hydrogen-based steel in Abu Dhabi, marking a significant step in utilising green hydrogen for steelmaking. The fully operational pilot project employs green hydrogen to extract iron from iron ore, an essential phase in steel production.

The green hydrogen produced has received certification from Avance Labs under the ISO 19870 methodology, and Bureau Veritas has validated the project, highlighting the UAE’s ambition to become a global leader in green steel production. Mohamed Jameel Al Ramahi, CEO of Masdar, stated that the project showcases world-class innovation stemming from their partnership with EMSTEEL, aimed at producing green steel with green hydrogen. He further noted that decarbonising hard-to-abate industries is critical to achieving the goals established under the historic UAE Consensus at COP28.

EMSTEEL, the UAE’s largest publicly listed steelmaker, reported that over 80% of its energy sources in 2023 were clean. Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, commented that their partnership with Masdar would significantly contribute to the ongoing decarbonisation efforts within the steel industry, a sector known for its challenging emissions profile. He added that the company’s operations currently achieve a carbon intensity 45% lower than the global average.

The pilot aligns with Abu Dhabi’s Low Carbon Hydrogen Policy and the UAE National Hydrogen Strategy, which aims to establish the UAE as a top producer of low-carbon hydrogen by 2031. Since its founding in 2006, Masdar has developed projects in over 40 countries, with plans to expand its renewable energy capacity to 100 GW by 2030 and to produce 1 million tonnes of green hydrogen or derivatives annually within the next decade.

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