Note and wishes from S N Singh

HI dear Steel Makers and Users Friends!

Sorry for Re-visiting our website after almost one year!

 

As all of us know quite well that total Iron and Steel sector, globally has undergone big turmoil since mid of 2014! As against average selling price of 450 USD/ton in 2014, it came down to as low as 300 USD/ton, while manufacturing cost also had reduction by 100 USD PMT from the level of 380 USD/ton. Prices of Iron ores and all kinds of Coals have drastic reduction apart from big fall in the crude oil prices. Some of salient commercial figures are mentioned hereunder, speaking the volatility of market:

  • Coke prices CIF Indian ports coming down from USD 200 to 140 PMT.

  • Iron Ore Pellets delivered prices within India coming down from 120 USD to 60 USD.

  • Lump Ore (Fe >63%) prices coming down from 100 USD down to 55 USD a Ton landed at plant.

  • Imported Ore fines (Fe>64%) coming down from 65 USD to 35 USD, CIF Indian port.

  • PCI, CIF prices coming down from 120 USD to 65 USD a Ton.

  • Mild Steel bars selling Price on CIF basis coming down from 450 USD to 280 USD a ton!

  • In India Selling Prices of MS Bars coming down from INR 28,000/ to 22,000/ and then again stabilizing at 26,000/ PMT after Govt. changing import duty structure.

  • It is sheer inefficiency of Indian Iron and Steel makers who despite so much of lowering of International prices of almost every input (including power and transport, which are almost highest rated in INDIA unfortunately) coming so much down (70 to 120%!).

  • Due to still very high prices, only in India of Diesel and petrol transport is terribly high in India especially to units located land locked or wherever movements by road ranges from 500 to 1000 Km!

  • Alloy steel makers subscribing to automobile and Engineering zone are better placed than those catering to Construction and Infrastructure due to many Govt level confusing approach! Transactions not picking up!

  • Railways could be big consumer of Steel, unfortunately not going for upgrades wagons or additions of rakes!

  • Why WE ARE SO POOR in being effective on either cost or quantum at competitive prices? Definite reasons are: High Energy Cost, High Energy consumption, Mass Loss, Inefficient Process selection, Inadequate Re-cycling of byproducts, Dragged Project Execution, truncated Project Execution, over doing in operations, Poor quality Hardware, Lot of breakdowns, Vintage Mindsets of Owners + Managers, Long Learning Curve, Raw Materials not upgraded qualitatively!

Apart from above Organizations are guided by Politicians and Managers too getting politicized!

Wishing a better Tomorrow when rationale of Change for a competitive World is established!

Yours friendly: Snsingh