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The scenario in the cement industry in India is similar; current manufacturing capacity stands
at 455 mt, shooting up from 161 mt in FY2007.
2 With increasing spending on infrastructure, 3
FCC RESEARCH REPORT
is critical in defining
the overall quality of
the structure.
Rebars are used in Evolution of TMT Bars in India
RCC constructions
varying from large It is said, change
infrastructure projects is the only constant in
like bridges, ports, life. This applies to TMT
airports, urban bars as well. In terms of
infrastructure, technology, TMT bars
industrial plants and have changed a lot over
commercial buildings the years.
to small RCC-based Since the invention
individual house
of RCC in 1867, mild
construction. TMT bars
steel (MS) was being
are the backbone of
used as a reinforcing
civil construction. They
material. Plain MS
are deeply anchored are rapidly quenched through a series of water
into concrete to bear rebars of grade Fe215 to 250 were used till
1960. Later on, high-strength cold twisted jets. Rapid quenching provides intensive cooling
the loads of buildings,
deformed (CTD) bars began to be produced by of the surface, resulting in the bars having
slabs, beams and
cold working process. The yield stress of CTD hardened surface at the top while the core
columns, along with
the loads of people bars was Fe 415 against Fe 250 of MS rebars. remains red hot. The rebars are then allowed to
and their belongings. Though the chemical compositions of MS and cool in ambient conditions. During the course
They should be able to withstand the furies of nature, may not consider rebars an important element in CTD bars were the same, the physical strength of such slow cooling, the heat released from
such as windstorms and earthquakes. The infrastructure. However, considering the average steel of CTD bars was 60 per cent higher than MS the core tempers the hardened surface while
consumption of rebars in India is currently estimated at intensity of about 10 per cent by value in an RCC bars. TMT (thermo-mechanically treated) the core is turned into ferrite-pearlite aggregate
about 24 mtpa valued at about Rs 1.2 trillion. construction in India, the total construction industry bars, which provide an optimal combination of composition. The TMT process thus changes
can be valued at 10 times the valuation of the rebar high strength, ductility, bendability and other the structure material to a composite structure
Importance of rebars industry, which works out to an astronomical desirable properties, were introduced in India of ductile ferrite-pearlite composition with a
Looking at this Rs 1.2 trillion annual market, some Rs 12 trillion per annum. These are current figures; between 1985 and 1990. Now, there are hardly tough surface rim of tempered marten site. Now,
with infrastructure projects planned till 2025 or 2030, any CTD facilities in the country. higher grades like Fe 500, 550, 600, 650 and Fe
the figure is expected to swell in multiples. With such a 700 are being introduced. If a bridge requires
large construction industry being critically dependent consumption of 1,000 tonne of MS reinforcement
Process specification of TMT
Industry Structure: on the quality of steel rebars used, it is imperative that
all efforts are made to produce and promote the use of
Thermo-mechanical treatment is an for construction and if it is constructed with TMT
While explaining the manufacturing process, advanced heat treatment process in which red bars in place of MS bars, the net consumption
good quality rebars in India.
we have defined primary and secondary quality hot bars coming out of the last rolling mill stand will only be 400 tonne.
But are we really making good quality products in
TMT bars. However, it is quite surprising that the rebar industry? The fact is, there is already a
when we look at the industry structure, it is bifurcation, namely primary and secondary quality
inclined towards secondary quality bars. rebars. While the primary players enjoy 45 per cent of
Currently, the primary-secondary ratio is market share, the secondary players enjoy 55 per cent.
approximately 45:55. Primary steel is acquired from a steel-making
There are a few primary quality method known as the converter process. Here, iron
manufacturers, such as Steel Authority of ore is converted into steel. This process uses pig iron
India (SAIL), TATA Steel, Rashtriya Ispat Nigam from the blast furnace.
Ltd, JSW Steel, Jindal Steel & Power Ltd, and Secondary steel is usually made after adding some
Essar Steel. Meanwhile, about 500 secondary alloying elements to the primary steel, often by melting
quality manufacturers are spread across India, scrap or sponge iron and sometimes a mixture of both.
A little ahead in this feature, we shall explain the
concentrated in about 16 clusters; for example,
difference between primary and secondary
rolling mills in Mandi Gobindgarh, Raipur, and
manufacturers. Before that, let’s understand if there
those close to shipbreaking yards.
are any standards imposed on the manufacture of
secondary steel.
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Are there any standards imposed? about a change in terms of the quality of steel being primary players, if the number of commercials aired on
No one would deny the fact that all good recipes produced in the country. The key focus of their earlier national-level television is anything to go by!
start with quality ingredients. So the quality and and current endeavours has been on the beneficiation
strength of a structure depends on the quality of steel of the consumer. For example, mandatory BIS Prime difference – it’s the process that matters!
used in the construction. In India, BIS 1786 is a certification for all grades and sizes, steel quality It is important to differentiate between primary and
compulsory standard for steel. Steel of optimum control order, minimum import prices, safeguard duties secondary manufacturers. To understand the
quality can only be manufactured by using good and anti-dumping duties have been some of the key difference, one has to understand the process of
quality raw materials and a reliable rolling process. steps taken to keep a check on quality and regulate steel manufacturing.
Even if one of these parameters—the raw material or the supply of spurious material into the country. The ideal process of making finished steel is
the manufacturing process—is weak, the quality of However, despite the steps being taken by MOS illustrated below:
finished steel will not be on a par with the standards and BIS, there are still a few players who manufacture
mentioned in the BIS specification (BIS 1786, secondary quality steel. Rather, the market share of
Amendment 3, 2018). the secondary players is higher than that of the
The Ministry of Steel (MOS) and the Bureau of primary players. Surprisingly, the advertising spend of
Indian Standards have been instrumental in bringing secondary players seems to be higher than that of
As illustrated above,
Carbon 0.30 Max. 0.30-0.40% .22 Max.
Sulphur 0.055 Max. 0.05 Max. 0.05 Max
Phosphorus
S+P
0.055 Max.
0.105 Max.
0.05 Max.
0.100 Max.
0.05 Max
0.100 Max.
finished steel can be
Mn. - 0.60 Min. - produced by two
Si. - 1.30-1.60 -
possible means:
PROPERTIES/ INDIA (IS 1786) AMERICAN (ASTM A 615) EURO (DIN 488) 1. One is the primary method, where pure iron
COMPOSITION
ore is used as the raw material. This method
MECHANICAL Grade Fe- 550 Grade 75 (520) Bst 500-M
is adopted by large producers, known as
PROPERTIES
primary producers, as it entails a large capital
Proof Stress (Min.) 550 N/mm2 520 Mpa 500 Mpa
expenditure. The quality of steel produced this
Tensile Strength (Min.) 585 N/mm2 690 Mpa 550 Mpa way is superior and free of defects. It has high
Elongation (Min.) 8% 7% 8% purity and uniform chemical composition. The
Mandrel dia for bend Upto & including 20 mm-5D 6 to 25 mm-5D 6D steel is produced in large furnaces followed
test over 20mm-6D above 20 mm-7D by the refining process, leading to minimal
CHEMICAL COMPOSITION (%) internal defects and impurities.
Carbon 0.30 Max. 0.30-0.40 0.022 Max.
2. In the secondary method, scrap/sponge iron
is used as the raw material with no refining
Sulphur 0.055 Max. 0.05 Max. 0.050 Max.
facilities. The steel produced from scrap will
Phosphorus 0.050 Max. 0.05 Max. 0.050 Max.
be of unknown origin and, therefore, will have
S+P 0.100 Max. 0.100Max. 0.100 Max.
non-uniform composition.
Mn. - 1.30-1.60 -
Si. - 1.30-1.60 -
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Trade Centre in New York in 2001. When WTC caught was present in the steel or added owing to other earthquake, fire or
fire, its steel melted (like any other steel generally burning particles around the building. However, the other calamity—the
would have). However, the test results showed that it bottomline is that higher sulphur content in steel inherent tensile and
collapsed a bit early and imploded owing to higher makes it melt much earlier than steel with controlled ductile strength of
sulphur content. It is still debated whether the sulphur content of sulphur. quality TMT bars
provides sufficient
time for safe
IMPORTANCE OF CHEMICAL PROPERTIES evacuation of people.
In structural
Element / Stage of Control Relevance of element / Parameter Challenges faced for achieving applications, failure
Parameter control from exceeding the
Carbon Steel Making While Carbon Increases strength & The set up required for reducing UTS can be
hardness, it reduces ductility if in found in carbon in steel making has very catastrophic. A high
excess. (Ductility is required considering the high CAPEX. Not every steel number of casualties
fact that RCC is brittle and it is TMT that manufacturer wants to incur can occur when a
provides ductile tendency required for safet such huge costs. (This is not structure fails with
of structure) possible for secondary players little to no warning
who are present in different that it is being
Silicon Steel Making Helps in refining of steel and prevent overloaded. The ability
clusters). As stated earlier,
blowholes. (Blowholes are inner defect to see components
setting up a Blast Furnace
making it a low quality steel) starting to yield can
requires USD 1 Billion A huge
Manganese Steel Making Acts as a purifying agent. Combines with Cost for Smaller players putting give occupants a
sulphur to decrease its harmful effects. up Capacities at USD 1 Million) warning, allowing
Small additions of manganese are used to There is an important connection between them to evacuate. Also, when one component of the
deoxidize the alloy and enhance its concrete and steel. In any construction, RCC and steel structure fails, it can transmit shock and impact loads
mechanical strength and castability. are the two most important factors. Rather, it is the to other components of the structure; if the peak of
fusion of both that makes for a perfect combination. these loads also exceeds the UTS of those other
Sulphur Ladle Refining Present in steel as Iron Sulphide which Additional refining facility is
RCC has great compressive power but relatively low components, a single failure can cascade into even
furnace because of its low melting point produces required for de sulphurization
tensile strength and ductility; therefore, when it fuses greater damage. If the material can yield and deform
hot shortness, which makes the steel which is of additional cost to
with TMT steel bars, it gives rise to a highly ductile and significantly before failing, it can absorb the impact
susceptible to failure at high temperature. the manufacturer. (Rather this
tensile combination. Hence, it is important to energy and prevent it from being transmitted elsewhere.
(WTC Implosion was one Example) process is usually missing in
understand how ductile and tensile combinations are While there are many other stories to help us
Secondary players as shown in
measured and tested. understand how ‘evil’ contents affect quality, we must
the process diagram)
While understanding the chemical composition, it first understand how the manufacturers of secondary
Phosphorous Ladle It causes cold-shortness, i.e., high Additional refining by is also important to understand three important steel emerge.
Refining brittleness at normal and especially at oxidation process which aspects: yield strength, UTS/YS ratio and elongation
furnace low temperatures. It increase s tensile required additional time and (percentage).While yield strength defines the minimum How clusters of secondary players emerge
strength but also reduces the impact set up increases the overall limits of load that can be applied to steel without Let’s look at the root cause of the emergence of
strength and the ductility which steel making cost having any deformation, the UTS/YS ratio defines secondary players. In the absence of a blast furnace,
increases chances of failure. (Sinking the energy absorbed by the steel bar. In simple layman’s there is a huge difference between the capex required
of Titanic was one Example) terms, the UTS/YS ratio signifies the time duration one for setting up primary plants and secondary plants. To
gets for evacuation before failure of steel. quantify it, while the capex needed for a primary
Yield strength Rolling It defines the minimum limits of load Automated rolling mills with
The yield strength or yield point of a material is manufacturer is around $ 1 billion, it is just $ 1 million
that can be applied to steel without complete quality and
defined in engineering and material science as the for a secondary player.
having any deformation cooling control increases
stress at which a material begins to deform plastically. As it is not feasible for rebar manufacturers to cater
the CAPEX.
Prior to the yield point, the material will deform to markets more than 200 km from manufacturing
UTS/YS Ratio Rolling + It defines the energy absorbed by the - elastically and return to its original shape when the facilities (owing to heavy weight adding to the freight
cooling steel bar or in layman’s term it signifies applied stress is removed. Once the yield point is cost), there are clusters created by secondary
the time duration that one gets for passed, some traction of the deformation will be manufacturers. With lower capex requirement, these
evacuation before failure of steel permanent and non-reversible. Then comes ultimate players create smaller facilities around raw material
tensile stress (UTS), the amount of tensile (stretching) sources and even around the markets they want to
% Elongation Rolling + Imparts the bending properties to steel stress a material can withstand before failing or cater to. Now, the primary players have fewer plants
Cooling and absorption of energy released by
breaking. Here, the most important factor is the UTS/ and though they produce a quality product, catering
dissipated load
YS factor. Imagine a situation when there is an to the larger or pan-Indian markets is not feasible.
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With this demand-supply mismatch, there is a natural clusters have also developed near scrap collection How much are we risking? At what cost? Need for end-users to step in
emergence of secondary players who hardly spend on yards. Overall, clusters mostly appear near places with In the absence of a blast furnace, the The worst thing is that end-users are spending
capex for quality TMT production. low-quality raw material availability. The figure manufacturing-cost ratio would be 3:4 in favour of almost Rs 1,50,000 for TMT. And despite paying such
There are about 16 clusters in India that are closer indicates that Indian clusters can be divided into two secondary players. A secondary player can a huge cost for the product, their involvement in
to places where raw material is available and markets parts. It also illustrates how there is a 80:20 ratio of manufacture (lower quality) TMT at just three-fourths of research and decision-making is very low.
to cater to. While a few have appeared around scrap and DRI in one part and again a 80:20 ratio of the cost of primary players. While such is the In most cases, the value of a house appreciates.
ship-breaking yards (as ship scrap is available sponge iron-DRI in another. difference in cost, in times of lower capacity So it is an investment and not a spend. Whether it is a
abundantly and, obviously, at cheaper rates), a few Some clusters of secondary producers: utilisations the primary player suffers more as the small house or a big one, rebars provide strength. It’s
operating leverage reduces significantly. On the pricing important to note that people tend to avoid doing the
front, while different rates are available in different right research for something that may appreciate in
sectors, there is a clear difference of Rs 6,000-8,000 value and, more important, provide safety to the family.
per tonne. If the primary rebar is available at Rs 48,000 It is high time end-users become aware of the kind of
per tonne, secondary rebars are available at around Rs TMT quality they are purchasing while building their
40,000-42,000 per tonne. dream home.
Let’s calculate the cost of rebars required to While we have given the example of constructing
construct a 1,000 sq ft house. Consider that at 3 kg an independent house, even while purchasing a flat or
per sq ft (including beams, columns and pillars), the an apartment, we speak about bathroom fittings,
Mandi total rebar requirement is around 3 tonne. The cost for amenities, flooring, etc. No one even asks the builder
Gobindgarh using primary bars will be around Rs 1,44,000. about what kind of TMT is used for the whole
l
Similarly, for using secondary rebars, the total cost structure. So, institutional buyers also form a larger pie
stands at around Rs 1,20,000. We are risking the of the rebars market. Unless home buyers start asking
Kotdwar strength of our house structure for a matter of just questions, improvement in institutional buying (on the
Ghaziabad Rs 24,000! Considering a construction cost of quality front) seems difficult. End-users must
Rs 3,000 per sq ft, the total cost is around Rs 30 lakh. concentrate on quality factors and make an informed
Jaipur/
It means, the cost saved is just Rs 24,000, which is a decision, at least for safety purposes, and reap
Bhiwadi Kanpur/
mere 0.8 per cent of construction cost. Consider the long-term benefits.
Lucknow
land cost; we are just saving 0.6 per cent of the total But how would a layman evaluate a TMT bar?
cost of the house. There are very simple steps one can follow. Our focus
here is to create awareness among retail space
Raniganj buyers, as they have less expertise on the
Durgapur 3 KG/SQ FT USE (INCLUDING BEAMS, technicalities. Large institutional players, on the other
hand, know those factors thoroughly. Further, Tier III
Bhavnagar PILLARS AND COLUMNS) and IV cities form a good chunk of TMT markets,
Rourkela
3 kg/sq ft use (including beams, pillars and columns) where awareness seems to be really low.
Raipur
Primary Secondary
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