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Steelmakers’ Profits to Decline Amid Rising Imports and Price Burdens

JSW Steel has already reduced its capital expenditure for the year.

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Profits for most steelmakers are expected to decline for the third consecutive quarter, despite an increase in domestic steel consumption, according to analysts. The December quarter, typically a strong period for steel producers, has been impacted by an influx of cheaper steel imports, which have put downward pressure on domestic prices and profitability.
Finished steel imports into India have reached a six-year high, with over 7 million tonnes imported between April and December 2024. Average steel prices dropped 15% year-on-year and over 5% quarter-on-quarter in the October-December period, with flat steel prices continuing to decline while long steel products saw some recovery.
Steelmakers with a higher proportion of long steel products, like Jindal Steel and Power (JSPL) and Steel Authority of India (SAIL), are expected to fare better than those with a higher share of flat steel, such as JSW Steel and Tata Steel. Nuvama Institutional Equities noted that JSPL and SAIL may post higher EBITDA per tonne, while JSW and Tata Steel are likely to see profitability declines.
In addition to the price variations between flat and long steel, raw material prices have moved in opposing directions. Coking coal prices have fallen, while iron ore prices have increased. Companies with captive iron ore mines are expected to benefit from this price shift.
While India’s steel consumption grew 12% year-on-year to nearly 100 million tonnes between April and November 2024, weak demand in China and increased exports from India have negatively impacted earnings.
JSW Steel, India’s largest steel producer, has already reduced its capital expenditure for the year, and other companies may follow suit if steel prices remain subdued. Analysts suggest that Chinese stimulus, US tariff actions, and decisions on safeguard duties will be key factors influencing steel prices moving forward.
(ET)

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Baldota Group to Set Up Rs 540 Billion Steel Plant in Koppal

This investment follows the group’s earlier venture in November 2022.

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Bengaluru-based Baldota Group has announced plans to establish a massive steel plant in Karnataka’s Koppal district with an investment of Rs 540 billion. The integrated steel unit, to be developed under Baldota Steel and Power Ltd (BSPL), will have a production capacity of 10.50 million tonnes per annum (MTPA) and is expected to generate 15,000 jobs.

A memorandum of understanding (MoU) formalising the project will be signed at the Global Investors’ Meet between the Karnataka government and Baldota Group. The initiative aims to boost the state’s steel production while driving large-scale employment.

Baldota Group, known for its diversified interests in mineral exploration, mining, industrial gases, pellet production, wind power, and waste treatment, operates iron ore mines in Karnataka through its subsidiary MSPL Ltd. This latest investment follows the group’s earlier venture in November 2022, when its subsidiary Aaress Iron & Steel Ltd announced a Rs 180 billion steel plant in Koppal with a 3.5 MTPA capacity, promising 10,000 jobs.

(Deccan Herald)

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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

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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

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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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