India’s Steel Output Outpaces World Average Of 0.1% Growth In November

  • Source: Economic Times, December 23, 2014

Kolkata: India’s steel production grew at 4.8% in November outpacing the world average of 0.1% growth in November. During the month, India produced 6.89 million tonne (mt) of steel compared to 6.57 mt in the same month, last year.

With domestic production touching 76.19 mt during the first eleven months of calendar year (January-November 2014), India maintained its position as the world’s fourth largest steelmaker in 2014, like in the last four years, according to data released by Brussels-based World Steel Association (WSA).

China, Japan and the US were ahead of it in global rankings as the world’s largest steel producers.The WSA, a top global body that collates data from 65 countries which accounted for 98% of global steel in 2013, said world steel output touched 130.52 mt in November this year against 130.42 mt a year earlier. Lower production in China was mainly responsible for the subdued growth in the world average growth rate of steel, which is the largest producer and consumer of steel in the world.

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JSW, JFE team up for India play

MUMBAI: JSW Steel on Thursday announced a strategic alliance with Japan’s second-largest steelmaker JFE Steel, but markets were disappointed that the pact does not immediately involve the acquisition of an equity stake in the Indian company.

JSW, India’s third-largest steelmaker, said on Thursday that the partnership will allow it access to JFE’s technology for producing steel used in automobiles and both companies may acquire stakes in each other. Other possible tie-ups include the production of other specialty steels, procurement of raw materials in and outside India and the construction of an integrated steel plant in JSW’s West Bengal project.

JSW vice-chairman and managing director Sajjan Jindal said the financial implications of the proposed collaboration could be “immense” but not quantifiable immediately, because the exact nature of the collaborations has not been finalised. “We have constituted two task forces to arrive at final agreements. It is difficult to provide a timeframe as to when it might take place.”

Investors in India and Japan sold stocks of both firms, after it became clear that a share sale is not imminent.

On Thursday, the JSW stock slipped 0.65% to close at Rs 959.35 after reaching a 17-month high of Rs 1,039 in the morning session on BSE. Shares in JFE Holdings, promoters of JFE Steel, fell 2.9% to 2,885 yen in Tokyo. JSW has a market value of $3.9 billion and JFE $20.4 billion.

“If the money were to come into the company, then there would be an immediate benefit (in the form) of a fall in interest cost,” said Deepak Jasani, head of retail research at HDFC Securities. “Operationally, the technology transfer will take some time to show up in margin improvement,” he added. JFE Steel CEO Hajime Bada described the co-operation in the automotive segment as “the first step” of the partnership. “Through our co-operative activities, we would like to secure a local production base in India,” he said.

JSW has been going slow on its West Bengal project mainly because of funding problems. JSW plans to build a 10-million-tonne-per-year steel mill in West Bengal at an investment of Rs 11,000 crore. The alliance will supply automotive steel to the Indian units of Suzuki, Toyota, Honda and Hyundai, which are global customers of JFE, the world’s sixth-largest steelmaker.

Attempts by global steel companies to set up plants on their own in India have run into trouble. ArcelorMittal, the world’s largest steel producer, and South Korea’s Posco, announced plans more than two years ago to set up plants with capacity totaling 24 million tonne, but they are yet to get the land for the projects.

JSW joint managing director Seshagiri Rao told ET that the market for auto grade steel is growing at 7% with nearly 1.9 million tonne of steel being consumed by the sector. If other collaborations with JFE do not fructify, the Indian company will pay royalty for the procurement of automotive technology from its Japanese partner, he added.

Among the world’s low-cost steelmakers, JSW plans to raise annual capacity to 11 million tonne from 7 million tonne in two years. The $3.5-billion firm sells products in 100 countries.

 Source : Economic   Times. 20/11/09


Steel production needs to be doubled: Minister

NEW DELHI: India needs to double its steel production from the current 55 mn tonnes in five years if it wants to bridge the demand-supply gap, Minister of State for Steel Prathap Annayyagari said here Wednesday.

“During the last five years, the growth in the demand for steel has averaged to around 10 percent. To meet this growing demand, the steel sector has to double its production in the next five years,” Annayyagari said at a seminar organised by the Confederation of Indian Industry (CII) here.

The country has to further increase the steel output to 200 million tonnes by 2020, he added.

The difference between current per capita consumption of steel of 47 kg and the world average of 190 kg could be bridged if the rural demand was met, the minister said.

Speaking at the conference, Steel Authority of India Ltd (SAIL) chairman S.K. Roongta outlined various problems like land acquisition, availability of water and other raw material, besides forest and environmental clearances and urged for immediate solution.

Source : Economic   Times.  05/11/09


SAIL cuts flat product prices

NEW DELHI: Steel Authority of India Ltd has cut flat product prices by 750 rupees to 1,500 rupees ($16 to 32) a tonne, its chairman said on Wednesday.

The company expects prices to stabilize at these levels, S.K. Roongta told reporters at an industry conference.

SAIL, the country’s top producer of the alloy, posted an annual rise in sales of 30 per cent in October.

Source :  Economic   Times.  05/11/09



Corus to use full capacity by fiscal-end

NEW DELHI: Tata Steel said its European subsidiary Corus will be able to meet full capacity utilisation by the end of the current fiscal, riding on revival in global demand.

Corus, which had cut production capacity of its mills by as much as 50% amid the demand slump last year, has currently revived the utilisation of its mills to 80%. “In October, the capacity utilisation had touched 80%. It should be 85% by the end of November and 100% by the end of this financial year,” said Tata Steel vice-chairman B Muthuraman, on the sidelines of CII Steel Summit. Corus produces about 20 million tonne of steel per annum.

“Demand is coming back in the west,” he added. Globally, steel producers have started reviving their production capacities with the rise in demand for their products. ArcelorMittal had revived the capacity utilisation of its mills to about 61% in the past three months and aims to take it up to 70% in the ongoing quarter.

However, the world’s largest steelmaker had warned against the over production at Chinese still mills and the resultant influx of cheap steel goods, especially in the South Asian market. But, Mr Muthuraman said the production by Chinese steel mills is only meant to feed its domestic market and there is no threat of dumping of cheap steel items. “Chinese steel production will meet its internal demand, which is high,” he added.

Source :  Economic   Times.  05/11/09