1.) Life line of the Country.

2.) Govt. Policy.

i) Pre-Indep.
ii) Post Indep.
ii) Post Liberalisation.
iii) Present.
3.) Kinds of steel & the use. Infrastructure, Military, Machinery etc.
4.) India's Needs & Priorities.
5.) National Resources.
6.) Production strategy.
i.) Import strategy.
ii.) Export strategy.
iii.) Technology / Costs / etc,.
vi.) Present Need / Supply from within & Import / Costs etc.
v. ) Capital.
vi.) Consumers.
vii.) Infrastructure.
viii.) Military.
ix.) under developing Countries, etc.
7.) All relevant Facts & statics.
8.) Circumstances.
9.) MOU's with like minded Countries.
10.) Role of UGC, setting of specific Technological Institutions ( Autonomous ).
11.) Role of Financial Institutions. ( WB / IMF / Development Banks.
12.) Role of steel Industries.
13.) Govt. supporting Legislations. ( labour, Infrastructure, subsidies, all other essentials to be successful
venture. )
14.) Relevant Sales & Purchases promotions schemes by professionals to assist Govt.
15.) To set optimum "s", "p" & Production.
16.) Everything on war footing.
17.) Continuous Supervision, Monitoring & Corrective Measures.
I.) Steel, its importance
ii.) Steel production
iii.) Substitute of iron/steel
iv.) Iron ore resources world over
v.) Actual exploration world over
vi.) Over all demand of iron ore in entire world

vii.) Contemplation of demand & availability of iron ore

viii.) What would be the alternative for iron ore when it gets exhausted ?
ix.) Hence, Policy for optimum/calculated exploration of iron ore demand of the
time.
x.) Hence statistics/projections of need, import, export, exploration, costs and
effects, etc., etc, has to be thoroughly calculated and analysed on top priority
basis.
xi.) Hence, a thorough research has to be conducted in all related matters.
xii.) Adjustment need /demand, availability in international market, optimum
Rule for production, tax benefit/ employment, all other consideration
And then
xiii,) Legal provisions for the financial year or two.

$$$ IMPORTANCE
Used in/for.....
Import/Export
Balance of payment
Employment
GDP
Economic development
Investment
Share market
$$$ PRODUCTION
Quality of iron ore available & demand for quality/quantity
Global production
Latest technology
Investment required/availability
Costs
Benefits
Calculate time required
Demand and supply
R&D
Global tendency/trend
Transportation time/costs
Scrap & costs
Global stock market- movements

http://www.slideshare.net/shibisingh/indian-steel-industry

Importance of Steel
Steel has had a major influence on our lives, the cars we drive, the buildings we work in, the
homes in which we live and countless other facets in between. Steel is used in our electricitypower-line towers, natural-gas pipelines, machine tools, military weapons-the list is endless.
Steel has also earned a place in our homes in protecting our families, making our lives
convenient, its benefits are undoubtedly clear.

Steel is by far the most important, multi-functional and most adaptable of materials. The
development of mankind would have been impossible but for steel. The backbone of developed
economies was laid on the strength and inherent uses of steel.
The various uses of steel which in turn is a measure of adaptability of steel can be judged from
the following characteristics of steel :

Hot and cold formable

Weldable

Suitable machinability

Hard, tough and wear resistant

Corrosion resistant

Heat resistant and resistance to deformation at high temperatures.

Steel compared to other materials of its type has low production costs. The energy required for
extracting iron from ore is about 25 % of what is needed for extracting aluminum. Steel is
environment friendly as it can be recycled. 5.6 % of element iron is present in earth's crust,
representing a secure raw material base. Steel production is 20 times higher as compared to
production of all non-ferrous metals put together.
The steel industry has developed new technologies and has strived hard to make the world's
strongest and most versatile material even better. There are altogether about 2000 grades of steel
developed of which 1500 grades are high grade steels. There is still immense potential for
developing new grades of steel with varying properties .The large number of grades gives steel
the characteristic of a basic production material Steel has enjoyed an important position in our
lives and will continue to do so in the years to come. However, the degree to which it maintains
its dominant position will depend on if steel can exploit its potential by developing new higher
grades and adaptable grades. This can be achieved by refining the structure and applying alloying
techniques and thus furthering its utility value. We will have to find out ways to use steel and be
ready to face a stiff competition from Aluminium in the future.

Facts and Figures

FACTS AND FIGURES

Iron

and

steel

in

history

It is believed that iron in pre-historic times may have been obtained from fragments of meteorites
and it remained a rare metal for many centuries. Even after man learned how to extract iron from
its ores, the product probably was so relatively soft and unpredictable, that bronze continued to
be preferred for tools and weapons. Eventually iron replaced the non-ferrous metal for these
purposes when man learned how to master the difficult arts of smelting, forging, hardening and
tempering iron.
Man's use of iron in antiquity is attested by references to the metal in fragmentary writing and
inscriptions from the ancient civilizations of Babylon, Egypt, China, India, Greece and Rome.
Archeological finds in Mesopotamia and Egypt are proof that iron, and later steel, have been in
the service of mankind for almost 6000 years. In early times, iron was melted with the use of
charcoal made from wood. Later coal was discovered as a great source of heat. Subsequently, it
was converted into coke, which was found to be ideal for smelting of iron ore.
Iron kept its dominant position for around 200 or more years after the Saugus works, the first
successful iron works in America, was founded in 1646. With the advance of the Industrial
Revolution, iron formed the rails for the newly invented railroad trains. It was also used to
armour the sides of the fighting ships. About the mid-19th century, the age of steel began with
the invention of the Bessemer process (1856), which allowed steel to be made in large quantities
and at reasonable cost.
Use

of

iron

in

ancient

India

Indian history is also full of references to the use of iron and steel. Some of the ancient
monuments like the famous Iron pillar in New Delhi or the massive beams used in the Sun
Temple at Konark bear ample testimony to the technological excellence of ancient Indian
metallurgists.
The use of iron in India goes back to the ancient era. Vedic literary sources such as the Rig Veda,
the Atharva Veda, the Puranas and epics are filled with references to iron and to its uses in peace
and war. According to one of the studies, iron has been produced in India for over 3000 years in
primitive, small-scale facilities.

Some milestones in iron and steel in Indian history

326 BC

Porus presented Alexander 30 lbs of Indian iron

300 BC

Kautilya (Chanakya) showed knowledge of minerals, including iron ores, and the art
of extracting metals in 'Arthshastra'.

320 AD

A 16-meter Iron pillar erected at Dhar, ancient capital of Malwa (near Indore).

330380 AD

Iron pillar in memory of Chandragupta II erected near Delhi. This solid shaft of
wrought iron is about 8 meters in height and has dia. 0.32 to 0.46m.

13th
Massive iron beams used in the construction of the Sun temple, Konark
century
16th
Indian steel known as 'Wootz' of watery appearance used in the Middle East and
century Europe
Manufacture of cannons, firearms and swords and agricultural implements
17th
1830 Suspension bridge built over the Beas at Saugor with iron from Tendulkhma
century
(MP). JM Heath built iron smelter at Porto Nova, Madras Presidency
1870

Bengal Iron works established at Kulti

1907

Tata Iron & Steel Company formed

1953

Indian Government entered into agreement with Krupp Demag, Federal Republic of
Germany to set up steel plant at Rourkela

1954

Hindustan Steel Limited formed to construct and manage three integrated steel
plants at Rourkela, Durgapur and Bhilai

1956

Second Industrial Policy resolution vested the state with the exclusive responsibility
for developing industries, including iron and steel, and the term Public Sector came
into use for these

1960

Alloy steels plant installed at Durgapur

1965

Government of India signed agreement to establish steel plant at Bokaro

1973

Steel Authority of India Limited formed on 24th January

2006

IISCO merged with SAIL. Renamed IISCO Steel Plant.

Global

Scenario

World's total crude steel production grew at a slower rate during the first half of this century and the
growth rate picked up at a significant rate after the second world war:

1900

28 MT

1988

780 MT

1927

101 MT

1989

785 MT

1943

159 MT

1990

770 MT

1946

111 MT

1991

736 MT

1951

211 MT

1992

723 MT

1968

523 MT

1993

730 MT

1970

595 MT

1995

752 MT

1972

630 MT

1996

750 MT

1974

703 MT

1997

799 MT

1979

746 MT

1998

777 MT

1982

645 MT

1999

789 MT

1983

663 MT

2000

848 MT

1984

771 MT

2001

850 MT

1985

719 MT

2002

904 MT

1986

713 MT

2003

970 MT

1987

736 MT

2004

1,069 MT

2005

1,147 MT

2006

1, 251 MT

2007

1,344 MT

* Figures are from Statistics for Iron and Steel Industry in India, 2000

http://steel.nic.in/overview.htm

AN OVERVIEW OF STEEL SECTOR

Global Scenario | Domestic Scenario | Production | Demand - Availability Projection | Steel
Prices | Imports | Exports | Levies on Iron & Steel | Opportunities for growth of Iron and
Steel in Private Sector
Global Scenario

In 2014, the world crude steel production reached 1661.5 million tonnes (mt) and showed a
growth of 1.2% over 2013. (Source: World Steel Association or WSA, prov.)

China remained the worlds largest crude steel producer in 2014 (823 mt) followed by Japan
(110.7 mt), the USA (88.3 mt) and India (83.2 mt) at the 4th position.

WSA has projected that global apparent steel use will increase by 2% to 1,562 mt in 2014
following growth of 3.8% in 2013 while in 2015, world steel demand will grow by another 2% and
will reach 1,594 mt. As per their forecast, Indias outlook is improving and in 2014, Indias steel
demand is expected to grow by 3.4% to 76.2 mt, following growth of 1.8% in 2013. In 2015
structural reforms and improving confidence will support a further 6% growth in Indian steel
demand but elevated inflation and fiscal consolidation remain key downside risks to the outlook.

Per capita finished steel consumption in 2013 is estimated at 219 kg for world and 545 kg for
China by WSA. (note: 2014 data has not yet been released by WSA).
Note: 2014 world data are provisional
Domestic Scenario

The Indian steel industry has entered into a new development stage from 2007-08, riding high
on the resurgent economy and rising demand for steel.

Rapid rise in production has resulted in India becoming the 4th largest producer of crude steel
and the largest producer of sponge iron or DRI in the world.

As per the report of the Working Group on Steel for the 12th Five Year Plan, there exist many
factors which carry the potential of raising the per capita steel consumption in the country. These
include among others, an estimated infrastructure INVESTMENT of nearly a trillion dollars, a
projected growth of manufacturing from current 8% to 11-12%, increase in urban population to
600 million by 2030 from the current level of 400 million, emergence of the rural market for steel
currently consuming around 10 kg per annum buoyed by projects like Bharat Nirman, Pradhan
Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others.

At the time of its release, the National Steel Policy 2005 had envisaged steel production to
reach 110 million tonnes (mt) by 2019-20. However, based on the assessment of the current
ongoing projects, both in greenfield and brownfield, the Working Group on Steel for the 12th Five
Year Plan has projected that domestic crude steel capacity in the county is likely to be 140 mt by
2016-17 and has the potential to reach 149 mt if all requirements are adequately met.

The National Steel Policy 2005 is currently being reviewed keeping in mind the rapid
developments in the domestic steel industry (both on the supply and demand sides) as well as the
stable growth of the Indian economy since the release of the Policy in 2005.
Production

Steel industry was delicensed and decontrolled in 1991 & 1992 respectively.

Today, India is the 4 th largest crude steel producer of steel in the world.

In 2013-14, production for sale of total finished steel (alloy + non alloy) was 87.67 mt and
65.197 mt during April-December 2014-15 (provisional).

Production for sale of Pig Iron in 2013-14 was 7.95 mt and 6.08 mt during April-December
2014-15 (provisional).

India is the largest producer of sponge iron in the world with the coal based route accounting
for 89% of total sponge iron production in the country.

Data on production for sale of pig iron, sponge iron and total finished steel (alloy + non-alloy)
are given below for last five years and April-December 2014-15:

Indian steel industry : Production for Sale (in million tonnes)

Category

Pig Iron

200910

201011

201112

201213

2013-14

AprilDecember 20
14-15*

5.88

5.68

5.371

6.870

7.950

6.081 (5.868)

13.276
(13.413)

Sponge Iron

Total Finished
Steel (alloy +
non alloy)

24.33

25.08

19.63

14.33

18.20

60.62

68.62

75.70

81.68

87.67

65.197
(64.190)

Source: Joint Plant Committee; *provisional; figure in () is value in same period of

last year
Demand - Availability Projection

Demand Availability of iron and steel in the country is projected by Ministry of Steel in its
Five Yearly Plan documents.
Gaps in availability are met mostly through imports.
Interface with consumers by way of a Steel Consumers Council exists, which is conducted on
regular basis.
Interface helps in redressing availability problems, complaints related to quality.
Steel Prices

Price regulation of iron & steel was abolished on 16.1.1992. Since then steel prices are
determined by the interplay of market forces.

Domestic steel prices are influenced by trends in raw material prices, demand supply
conditions in the market, international price trends among others.

An Inter-Ministerial Group (IMG) is functioning in the Ministry of Steel, under the

Chairmanship of Secretary (Steel) to monitor and coordinate major steel INVESTMENTS in the
country.

The Government earlier took various fiscal and other measures for stabilizing steel prices like
significant reduction in import duties on steel, major raw materials, including mineral products and
ores and concentrates in last few years. Also, excise duty for steel is currently at 12% and there is
no export duty on steel items. The government has also imposed export duty of 30% on all forms
of iron ore and 5% on iron ore pellets in order to control ad-hoc exports of the mineral and
conserve it for long term requirement of the domestic steel industry.

For ensuring quality of steel several items have been brought under a quality control order
issued by the Government.

Further, a Steel Price Monitoring Committee has been constituted by the Government with the
aim to monitor price rationalization, analyze price fluctuations and advice all concerned regarding
any irrational price behavior of steel commodity.
Imports

Iron & steel are freely importable as per the extant policy.

Data on import of total finished steel (alloy + non alloy) is given below for last
five years and April-December 2014-15 (provisional):
Indian steel industry : Imports (in million tonnes)

Category

200910

201011

201112

201213

201314

AprilDecember
2014-15*

Total Finished Steel (alloy +

non alloy)

7.38

6.66

6.86

7.93

5.45

6.492
(4.122)

Source: Joint Plant Committee; *provisional; figure in () is value in same period of

last year

Exports

Iron & steel are freely exportable.

Data on export of total finished steel (alloy + non alloy) is given below for last
five years and April-December 2014-15 (provisional).:
Indian steel industry : Exports (in million tonnes)

Category

Total Finished Steel (alloy

+ non alloy)

2009- 2010- 2011- 2012- 201310

11
12
13
14

April-December
2014-15*

4.066 (4.355)
3.25

3.64

4.59

5.37

5.98

Source: Joint Plant Committee; *provisional; figure in () is value in same period of

last year
Levies on Iron & Steel

SDF levy

This was a levy started for funding modernisation, expansion and development of steel sector.
The Fund, inter-alia, supports :
1.

Capital expenditure for modernisation, rehabilitation, diversification, renewal &

replacement of Integrated Steel Plants.

2.

Research & Development

3.

Rebates to SSI Corporations

4.

Expenditure on ERU of JPC

The SDF levy was abolished on 21.4.94

Cabinet decided that corpus could be recycled for loans to Main Producers

Interest on loans to Main Producers is set aside for promotion of R&D on steel etc.

An Empowered Committee has been set up to guide the R&D effort in this sector.

EGEAF Was a levy started for reimbursing the price differential cost of inputs used for
engineering exporters. Fund was discontinued on 19.2.96.
Opportunities for growth of Iron and Steel in Private Sector
The New Industrial Policy Regime

The New Industrial policy opened up the Indian iron and steel industry for
private investment by (a) removing it from the list of industries reserved for public
sector and (b) exempting it from compulsory licensing. Imports of foreign
technology as well as foreign direct INVESTMENT are now freely permitted up to
certain limits under an automatic route. Ministry of Steel plays the role of a
facilitator, providing broad directions and assistance to new and existing steel
plants, in the liberalized scenario.

The Growth Profile

(i) Steel : The liberalization of industrial policy and other initiatives taken by the
Government have given a definite impetus for entry, participation and growth of the
private sector in the steel industry. While the existing units are being
modernized/expanded, a large number of new steel plants have also come up in
different parts of the country based on modern, cost effective, state of-the-art
technologies. In the last few years, the rapid and stable growth of the demand side

has also prompted domestic entrepreneurs to set up fresh greenfield projects in

different states of the country.

Crude steel capacity was 101 mt in 2013-14 and India, the 4 th largest producer of
crude steel in the world, has to its credit, the capability to produce a variety of
grades and that too, of international quality standards. The country is expected to
become the 2nd largest producer of crude steel in the world soon, provided all
requirements for creation of fresh capacity are adequately met.

(ii) Pig Iron: India is also an important producer of pig iron. Post-liberalization, with
setting up several units in the private sector, not only imports have drastically
reduced but also India has turned out to be a net exporter of pig iron. The private
sector accounted for 93% of total production for sale of pig iron in the country in
2013-14. The production for sale of pig iron has increased from 1.6 mt in 1991-92 to
7.95 mt in 2013-14.

(iii) Sponge Iron: India is the worlds largest producer of sponge iron with a host
of coal based units, located in the mineral-rich states of the country. Over the years,
the coal based route has emerged as a key contributor and accounted for 89% of
total sponge iron production in the country. Capacity in sponge iron making too has
increased over the years and stood at 45 mt in 2013-14.

http://www.issb.co.uk/global.html
Global Overview
Global Crude Steel Production ; Global Trade in Steel
Global Trade in Iron Ore ; Global Trade in Scrap
TRADE

DATA

ISSB maintains a detailed database of the imports and exports of steel and
steelmaking raw materials for more than 50 major steelmaking nations,
collectively accounting for 97% of global steel output. This high level of coverage
also allows an accurate assessment of the TRADE flows for those countries for
which we cannot obtain national trade data.
**NEW From ISSB** Steel Products World Trade Reports - updated monthly

Global Crude Steel Production

In 2013 global output reached 1,607 million tonnes, 3% up on 2012. This increase was
driven by a further jump in CHINESE PRODUCTION , which was up 7% year on year and now

accounts for well over 48% of the world total. Discounting Chinese production, the rest of
the world was flat when compared to 2012. Looking at the largest steel producers, it can be
seen that different regions had differing fortunes over the year. Much of Asia increased
output, and apart from China it can also be seen that Taiwan was up 8%, India was up 5%
and Japan increased by 3% with South Korea the only major Asian producing country to show
a decline, down by 4%. Other notable increases were Iran, up 7% and Mexico, up 2%. Apart
from Mexico, the NAFTA countries did not fare well with Canada down 8% and the US falling
by 2%. Indeed, if the current rates continue, it will not be long before India overtakes the US
as the worlds fourth largest steel producing region. It should also be noted that despite the
well documented problems within Europe, crude steel production only fell by 2% year on
year.
Below we summarise World Steel Association crude steel production data.

Global Trade in Steel

Exporters
Of the large steel producing nations, China continued to export more steel and is now by far

the largest exporter in the world. The EU exported an increased amount as internal demand
fell and a weak Euro made their exports more competitive. South Korea, Russia and Turkey
also showed large increases in their exports of steel.

Importers
The worlds largest steel importer, the US imported 17% more in 2012 when compared to
2011 as the economy started to recover following the downturn. China and South Korea
continued to position themselves more as net exporters as higher domestic production led
to a fall in imports. The widely publicised demand problems within the EU are shown clearly
here with a 26% fall when compared to 2011. Apart from the USA, large increases in
imports were seen in Thailand, Mexico and Indonesia.

If you want to know more about steel exports or imports please either
contact phil.hunt@issb.co.ukor use our on-line Trade Enquiry System.

Global Trade in Steelmaking Raw Materials

Global TRADE

in Iron Ore

Iron ore exports are dominated by Australia and Brazil, with demand driven by Chinese
imports. 2010 saw iron ore exports reach new heights with combined shipments by the top
15 exporting nations reaching 280 million tonnes in Quarter 4 alone and with annual
shipments exceeding 1 billion tonnes for the first time. The 2010 total represents a 12%
increase on 2009 levels and was reached despite a 1% fall in CHINA'S IMPORTS .
2011 saw iron ore exports rise by 4%. CHINA'S IMPORTS rose faster than the rise in
domestic crude steel production, suggesting a fall in the contribution from domestic mines,
with the 2011 total of 687 million tonnes 11% up on 2010. Of the major exporters only India
showed a decline following increases to export tariffs.
The decline in Indian iron ore exports continued into 2012, as they fell by 27% on the
previous year. The slack was taken up by Australia, with exports up by 13% to over half a
billion tonnes. Total TRADE from the top 15 nations increased by 5% to a new record level.

If you want to know more about global iron ore exports or imports please either
contactphil.hunt@issb.co.uk or use our NEW on-line Trade Enquiry System.
Global TRADE

in Scrap

In 2012, global imports of scrap fell (by 2%) for the first time in recent history. This fall,
slightly mitigated by increases in Turkish, South Korean and Indian imports, was driven by
reductions in the EU as a continued lack of demand in the construction sector led to reduced
EAF production; and falls in CHINESE IMPORTS as more Chinese scrap was sourced
internally.

If you want to know more about scrap exports or imports please either
contact phil.hunt@issb.co.ukor use our on-line Trade Enquiry System.

http://www.investindia.gov.in/steel-sector/
Investment Opportunity>>Steel
Sector Overview
India was the worlds fifth largest producer of crude steel in 2009 and is expected to become the
worlds second largest producer by 20152016. These are the projections made by Ernst &
Young in a report on the outlook of Indian Steel industry.
The report also projects the total crude steel capacity in India to be around 112.5 million tonnes
by 2015. It also notes that India is the worlds fourth largest iron ore producer, with sufficient
iron ore reserves to meet expected steel demand.
According to the Ministry of Steel Annual Report 2010-11, India remains world's largest
producer of direct reduced iron (DRI) or sponge iron during January / December 2010, a rank it
has held since 2002.
The annual report statistics estimate the Crude steel production to be 50.59 million tonne during
April - Dec 2010. Pig iron production for sale in April - December 2010 was 4.22 million tonne.
Domestic steel consumption was at 44.28 million tonne during the period.
The Indian steel sector enjoys advantages of domestic availability of raw materials and cheap
labor. Iron ore is also available in abundant quantities. This provides major cost advantage to the
domestic steel industry, with companies like Tata Steel being one of the lowest cost producers in
the world
Being a core sector, steel industry reflects the overall economic growth of an economy in the
long term. Also, steel demand, being derived from other sectors like automobiles, consumer
durables and infrastructure, its fortune is dependent on the growth of these user industries.
While steel continues to have a stronghold in traditional sectors such as construction, housing
and ground transportation, special steels are increasingly used in engineering industries such as
power generation, petrochemicals and fertilisers. Indian steel industry is very modern with state-

of-the-art steel mills. It has always strived for continuous modernisation & up-gradation of older
plants and higher energy efficiency levels.
According to the Ministry of Steel, Steel producers have signed 222 MOUs with various states
for a planned capacity of about 275.7 million tones in 2009-10.
INVESTMENT Policy
Indian INVESTMENT policy stipulates 100 per cent foreign direct investment (FDI) through
the automatic route in the Indian steel sector.
Some of the initiatives taken by the government to promote the steel sector include National
Steel Policy 2005, which seeks to facilitate the removal of procedural and policy bottlenecks that
affect the availability of production inputs, increased INVESTMENT in research and
development, and the creation of road, railway and port infrastructure.
Some initiatives undertaken by the Indian Government in the Eleventh Plan to promote the steel
sector include:

The Planning Commission has approved a total outlay of US$ 9.5 billion for the
development and promotion of the iron and steel sector.

The scheme for the promotion of research and development in the iron and steel sector
has been approved with a budgetary provision of US$ 24.6 million to initiate and implement the
provisions of the scheme.

The National Steel policy 2005 targets indigenous production of 110 million tonnes (mt)
by 2019-20 against targeted consumption of 90 mt by 2019-20.
The Eleventh plan working group for steel recommends the following for effective development
of Indian steel industry:

Full utilization of the existing policy framework of Public-Private Partnerships (PPPs) in

development of infrastructure like Railways.

Scheme for promotion of Research and Development in Iron & Steel sector" with a
budgetary provision of Rs. 1,180 million for implementation. The objective of the scheme is to
develop path-breaking technologies in an environment friendly manner.

Spread awareness about hedging mechanisms available in exchanges like MCX and
NCDX and develop appropriate regulatory mechanism to avoid any manipulative practices.

Develop an appropriate Institutional Framework for collection of data and dissemination

of Information.

Consider setting up of a multi-disciplinary organization along the lines of the

International Iron & Steel Institute (IISI).

A dedicated plan FUND of Rs. 250 million for the 11th Five Year Plan in the Ministry
of Steel towards grant for development of human resources for iron and steel and for ad
campaigns for promotion of steel usage.

A Technology Up-gradation FUND Scheme (TUFS) for the Small and Medium
Enterprises (SME) sector.
Moreover, in order to encourage R&D activities in iron & steel sector, Ministry of Steel is
providing FINANCIAL assistance from Steel Development Fund (SDF) and Plan Fund. Sixty
four research projects initiated by public and private undertakings, research laboratories,
educational and other promotional institutions have so far been approved at a cost of Rs. 4,420
million during 2010, of which the SDF component is Rs. 2,780 million. So far 31 projects have
been completed and 24 research projects are underway.
The government introduced Special Economic Zones (SEZs) in June 2005, with the plan of
creating internationally competitive regions. Steel plants operating in SEZs receive some
advantages like tax holiday; they can freely source inputs domestically or externally without any
specific approval or duty payable.
MARKET Highlights
More than 3,500 different varieties of steel are available in the steel industry of India. These can
however be classified into two broad categories of flat products and long products. Flat products
include plates and hot rolled sheets such as coils and sheets. Flat products are derived from slabs.

One of the major uses of steel plates is in ship building. Long products include bars, rods, wires,
ropes and piers. These are called long products due to their shapes. Long products are made from
billets and blooms. Long products are mostly used in housing and construction and also in rail
tracks.
Iron ore and coal constitute the primary raw materials for steel production. One of the growth
drivers helping the sector to grow is abundant availability of iron ore in the country with States
such as Orissa, Jharkhand and Chhattisgarh which are rich in iron ore reserves. The National
Minerals Development Corporation (NMDC) plans to expand its iron ore production capacity
from its existing capacity of 30 million tonnes per annum (MTPA) to 50 MTPA by 201415
through the capacity expansion of current mines as well as by setting up new mines. Further,
India also has well established facilities for the production of steel. Indias steel sector also has a
competitive advantage vis--vis the availability of raw materials and workforce, both skilled and
unskilled.

Major Players
Indian steel Industry can be divided into two main sectors Public sector and Private sector.
Further on the basis of routes of production, the Indian steel industry can be divided into two
types of producers: Integrated producers and Secondary producers.
Integrated producers convert iron ore into steel. There are three major integrated steel players in
India, namely Steel Authority of India Limited (SAIL), Tata Iron and Steel Company Limited
(TISCO) and Rashtriya Ispat Nigam Limited (RINL).
Secondary producers are the mini steel plants (MSPs), which make steel by melting scrap or
sponge iron or a mixture of the two. Essar Steel, Ispat Industries and Lloyds steel are the largest
producers of steel through the secondary route.

The Indian steel industry is also receiving significant foreign INVESTMENTS such as
POSCO, a South Korean steel producer and Arcelor - Mittal Group, Europe based steel producer
announcing plans for establishing about 12 million tonne production units each in India.
Other foreign players who have set foot in India are Japan's Nippon Steel in joint venture with
Tata Steel for making cold rolled sheets; Japan's JFE Holdings in talks with JSW for a stake buy;
Japan's Kobe Steel and SAIL in talks for a joint venture and Russia's Severstal and NMDC in
joint venture to a build steel plant.
Sector Prospects
According to the Indian Ministry of Steel, the present per capita consumption of steel in the
country is only around 49 kg against the world average of 182 kg. So there is immense potential
for growth of the sector. The ministry also predicts that India is expected to become the second
largest producer of steel in the world by 2015-16, provided all requirements for fresh capacity
creation are met.
"Over the next couple of years, there could be mergers and acquisitions, particularly in the
sponge iron sector," predicts Kejriwal Research & INVESTMENT Services, referring to the
hundreds of small units, many of which are unviable. In 2010, JSW Steel bought a controlling
stake in Ispat Industries.
Opportunities exist for future growth of the sector due to reasons that include potentially huge
domestic demand for steel-intensive social and economic infrastructure resulting from all round
economic development and particularly because of anticipated growth in urbanization;
demographic conditions that favour Increasing demand for consumer durables; untapped rural
market and increasing interest of domestic and overseas producers in capacity creation to serve
the domestic and overseas markets.
Sources:

http://www.cci.gov.in/images/media/completed/Indicussteel_20090420151842...

http://www.ibef.org/artdispview.aspx?cat_id=487&art_id=29430&in=69

http://www.ey.com/GL/en/Industries/Mining---Metals/Global-Steel--2010-tr...

http://www.ey.com/Publication/vwLUAssets/Global_steel_-_2010_trends,_2011_outlook__Executive_summary/$FILE/Global%20Steel%20Report%202010-2011%20Exec%20summary.pdf

http://www.ibef.org/download/Steel_270111.pdf

http://www.worldsteel.org/statistics/crude-steel-production.html
http://www.worldsteel.org/statistics/crude-steel-production.html
http://www.business-standard.com/article/markets/demand-iron-oreavailability-concerns-for-jsw-steel-114052801545_1.html
http://www.foundryinfo-india.org/Government%20update%20on
%20availability%20of%20iron%20ore%20in%20India.aspx

Government update on availability of iron ore in India

The minister of steel, Mr Beni Prasad Verma has said that the production of iron ore during 2010-11 (provisional) was
208 million tonnes whereas the total estimated domestic consumption by iron and steel industry was 111.40 million
tonnes. Therefore, overall there has been no scarcity of iron ore for the domestic iron and steel industry.
In a written reply in the Lok Sabha he said, to improve availability of iron ore for the domestic iron and steel industry
at affordable price, the Government has increased the export duty on iron ore from 20% ad valorem to 30% ad
valorem on all grades of iron ore (except pellets) with effect from December 30th2011.
The export of iron ore during 2011-12 has been substantially reduced and was approximately 55.76 million tonnes
during April,11-February,12 (provisional) as compared to about 87.25 million tonnes in the corresponding period of
previous year 2010-11, thus showing a reduction of about 36% in the export of iron ore from the country.

https://www.equitymaster.com/research-it/sector-info/steel/Steel-SectorAnalysis-Report.asp

http://timesofindia.indiatimes.com/city/bengaluru/Iron-ore-reserves-willbe-exhausted-by-2040-State-tells-SC/articleshow/8155655.cms
http://www.thehindu.com/business/Industry/india-may-have-to-startimporting-iron-ore-soon-steel-ministry/article5386470.ece

India The new facilities of the 2.9 million tonnes per annum brownfield
expansion at Jamshedpur reached their full capacity in the second half of
Financial Year 2013-14 which helped register the best-ever performance
in Hot Metal, Crude Steel, Saleable Steel production and total sales.
The economic growth in India remained quiet on the back of high
inflation, high interest rates, low industrial growth and low investments
in the country, along with the poor condition of the global economy.
Steel demand in India remained almost flat in the last year.
Despite the weak macroeconomic environment, the performance of the
Indian operations improved significantly.

OPERATIONS OVERVIEW
THE JOURNEY SO FAR The business model of the Tata Steel group is
aligned to its vision of Becoming the Benchmark in Value Creation and
Corporate Citizenship in the steel industry. Through this, it maintains a
strategic focus on continuous value creation for all its stakeholders. The

Company is one of the largest steel producers in the world and one of the
worlds most geographically diversified, with operations in 26 countries
and a commercial presence in over 50 countries. With a focus on
continuous improvement, the Company meets diverse customer
requirements across multiple segments, globally.
Crude Steel production reached 9.15 million tonnes in Financial Year
2013-14, registering a 13% increase over the previous year
notwithstanding scheduled maintenance shutdowns carried out in Q3.
To cater to the increased requirements, the iron ore mines also ramped
up to required quantities. Customer focus, better products and vast
distribution network helped additional sales of 1 million tonnes over the
previous year. Sales increased by 14% to 8.52 million tonnes in
Financial Year 2013-14 from 7.48 million tonnes in Financial Year 201213.
In Financial Year 2013-14 EBITDA improved to ` 13,281 crores, up
14% from ` 11,698 crores in Financial Year 2012-13.
Sales of Automotive and Special Products increased by 15% in Financial
Year 2013-14 despite an approximate 5% decline in the auto market.
Sale of Branded Products, Retail and Solutions constituted 34% of the
total sales and increased by 11% over the previous year. Sale of
Industrial Products, Projects and Exports increased by 18% over

Financial Year 2012-13. Proactive market development has helped in

expanding the domestic customer base.
Ferro Alloys and Minerals Division (FAMD) continued to support steel
divisions profitability despite facing regulatory issues. FAMD
maximized profits by judicious allocation of products to profitable
geographies. It also launched two new brands in the ferro-alloys industry
to improve its visibility in the Indian market.
http://timesofindia.indiatimes.com/business/india-business/Indiabecomes-net-steel-exporter-after-6-years/articleshow/33691193.cms
http://ieconomics.com/steel-india-gdp
http://ieconomics.com/steel-india-labour
http://ieconomics.com/india-exports-of-iron-&amp%3Bamp-steel
http://ieconomics.com/india-exports-of-iron-&amp%3B-steel
http://steel.nic.in/Scheme%20for%20promotion%20of%20Research
%20&%20Development%20in%20Indian%20Iron%20&%20Steel
%20Industry.htm

Afghanistan

natural gas, petroleum, coal, copper, chromite, talc, barites, sulfur,

lead, zinc, iron ore, salt, precious and semiprecious stones

Albania

petroleum, natural gas, coal, bauxite, chromite, copper, iron ore,

nick el, salt, timber, hydropower

Algeria

petroleum, natural gas, iron ore, phosphates, uranium, lead, zinc

Andorra

h ydropower, mineral water, timber, iron ore, lead

Angola

petroleum, diamonds, iron ore, phosphates, copper, feldspar, G O L D

, bauxite, uranium

Antarctica

iron ore, chromium, copper, GOLD , nickel, platinum and other

minerals, and coal and h ydrocarbons have been found in small
noncommercial quantities; none presently exploited; krill, finfish, and
crab have been taken by commercial fisheries

Argentina

fertile plains of the pampas, lead, zinc, tin, copper, iron ore,
manganese, petroleum, uranium

Austria

oil, coal, lignite, timber, iron ore, copper, zinc, antimony, magnesite,
tungsten, graphite, salt, hydropower

Azerbaijan

petroleum, natural gas, iron ore, nonferrous metals, bauxite

Bosnia and Herzegovina

coal, iron ore, bauxite, copper, lead, zinc, chromite, cobalt,

manganese, nick el, clay, gypsum, salt, sand, timber, hydropower

Colombia

petroleum, natural gas, coal, iron ore, nickel, GOLD , copper,

em eralds, hydropower

Cote d'Ivoire

petroleum, natural gas, diam onds, manganese, iron ore, cobalt,

bauxite, copper, gold, nickel, tantalum, silica sand, clay, cocoa
beans, coffee, palm oil, hydropower

Croatia

oil, some coal, bauxite, low-grade iron ore, calcium, gypsum, natural
asphalt, silica, mica, cla ys, salt, hydropower

Cuba

cobalt, nick el, iron ore, chrom ium, copper, salt, timber, silica,
petroleum, arable land

Egypt

petroleum, natural gas, iron ore, phosphates, manganese, limestone,

g ypsum, talc, asbestos, lead, rare earth elem ents, zinc

Gabon

petroleum, natural gas, diam ond, niobium, manganese, uranium,

gold, timber, iron ore, hydropower

Georgia

timber, hydropower, manganese deposits, iron ore, copper, minor

coal and oil deposits; coastal climate and soils allow for important
tea and citrus growth

Greece

lignite, petroleum, iron ore, bauxite, lead, zinc, nickel, magnesite,

marble, salt, hydropower potential

Greenland

coal, iron ore, lead, zinc, molybdenum, diamonds, G O L D , platinum,

niobium, tantalite, uranium, fish, seals, whales, hydropower, possible
oil and gas

Guinea

bauxite, iron ore, diam onds, G O L D

Honduras

timber, gold, silver, copper, lead, zinc, iron ore, antimony, coal, fish,
h ydropower

Iran

petroleum, natural gas, coal, chrom ium, copper, iron ore, lead,
manganese, zinc, sulfur

Kazakhstan

major deposits of petroleum, natural gas, coal, iron ore, manganese,

chrome ore, nickel, cobalt, copper, molybdenum, lead, zinc,
bauxite, G O L D , uranium

Korea, North

coal, lead, tungsten, zinc, graphite, magnesite, iron ore,

copper, GOLD , pyrites, salt, fluorspar, hydropower

Lebanon

limestone, iron ore, salt, water-surplus state in a water-deficit

region, arable land

Liberia

iron ore, timber, diam onds, GOLD , h ydropower

Luxembourg

iron ore (no longer exploited), arable land

Macedonia

low-grade iron ore, copper, lead, zinc, chrom ite, manganese, nickel,
tungsten, GOLD , silver, asbestos, gypsum, tim ber, arable land

Malaysia

tin, petroleum, tim ber, copper, iron ore, natural gas, bauxite

Mali

GOLD , phosphates, kaolin, salt, limestone, uranium, gypsum,

granite, hydropower
note: bauxite, iron ore, manganese, tin, and copper deposits are
known but not exploited

, uranium, hydropower, fish, salt

Mauritania

iron ore, gypsum, copper, phosphate, diam onds, gold, oil, fish

Namibia

diam onds, copper, uranium, G O L D , silver, lead, tin, lithium,

cadmium, tungsten, zinc, salt, hydropower, fish
note: suspected deposits of oil, coal, and iron ore

Niger

uranium, coal, iron ore, tin, phosphates, gold, molybdenum, gypsum,

salt, petroleum

Nigeria

natural gas, petroleum, tin, iron ore, coal, limestone, niobium, lead,
zinc, arable land

Norway

petroleum, natural gas, iron ore, copper, lead, zinc, titanium, pyrites,
nick el, fish, timber, hydropower

Pakistan

land, extensive natural gas reserves, limited petroleum, poor quality

coal, iron ore, copper, salt, limestone

Paraguay

h ydropower, timber, iron ore, manganese, limestone

Peru

copper, silver, G O L D , petroleum, timber, fish, iron ore, coal,

phosphate, potash, hydropower, natural gas

Portugal

fish, forests (cork), iron ore, copper, zinc, tin, tungsten, silver, gold,
uranium, marble, clay, gypsum, salt, arable land, hydropower

Romania

petroleum (reserves declining), timber, natural gas, coal, iron ore,

salt, arable land, hydropower

Senegal

fish, phosphates, iron ore

Serbia

oil, gas, coal, iron ore, copper, zinc, antimony, chromite, G O L D

silver, magnesium, p yrite, limestone, marble, salt, arable land

Slovakia

brown coal and lignite; small am ounts of iron ore, copper and
manganese ore; salt; arable land

South Sudan

h ydropower, fertile agricultural land, GOLD , diamonds, petroleum,

hardwoods, limestone, iron ore, copper, chromium ore, zinc,

tungsten, mica, silver

Sudan

petroleum; sm all reserves of iron ore, copper, chromium ore, zinc,

tungsten, mica, silver, GOLD ; h ydropower

Svalbard

coal, iron ore, copper, zinc, phosphate, wildlife, fish

Sweden

iron ore, copper, lead, zinc, G O L D , silver, tungsten, uranium,

arsenic, feldspar, timber, hydropower

Syria

petroleum, phosphates, chrome and manganese ores, asphalt, iron

ore, rock salt, marble, gypsum, hydropower

Turkey

coal, iron ore, copper, chrom ium, antimony, mercury, G O L D , barite,

borate, celestite (strontium ), emery, feldspar, lim estone, magnesite,
marble, perlite, pumice, pyrites (sulfur), clay, arable land,
h ydropower

Ukraine

iron ore, coal, manganese, natural gas, oil, salt, sulfur, graphite,
titanium, magnesium, kaolin, nickel, mercury, tim ber, arable land

Venezuela

petroleum, natural gas, iron ore, gold, bauxite, other minerals,

h ydropower, diamonds

https://www.cia.gov/Library/publications/the-worldfactbook/fields/2111.html
http://www.miningweekly.com/article/scrap-generation-will-neverreplace-iron-ore-and-coking-coal-steel-major-2012-07-12

Iron and steel industries are important part of Indian industries. They are
the base of Indian economy. India is on top 4 positions in the world
regarding export of steel and its raw materials. India is the 4th largest
crude steel producer in the steel production in the world. Steel is very
important in daily basis