BRIEF ON ODDS AND EVENS OF INDIAN IRON AND STEEL INDUSTRY
A. Production current of Steel:Annual
- Capacity: 130 Million Tons
- Output:100 MTPA
- Consumption:105 MTPA
- Imports:5 MTPA
- Routes: Integrated BF,BOF:50 MTPA;BF,EOF/EAF:15 MTPA;BF,DRI, EAF:5 MTPA, DRI+Scrap, Induction Furnace:35MTPA.
- Casting: Ingots:1 MTPA; Continuous Cast;105 MTPA,
- Ratio: Flat/Long:35//65.
- Future Expansion: In Integrated Set up:10 MTPA in next Two years, In mini steel plants, BF route-Nil, DRI route-2 MTPA
- Future Expansion after Two Years: Integrated set up ; 5 MTPA, Induction route-zero.
- Steel consumption per capita: 800 Kgs, Global 2200 Kgs and China 7000 Kgs/person/Annam.
B. Performance considering global scenario:
- Average Utilization:80% against Global 90% (barring plants kept on redundancy).
- Breakdowns, shutdowns losses of time 10% against global <5%.
- Energy: 7.0 G Cal/ton against Global 4.2 G Cal/T.
- Man Power: 3 times higher against Global.
- Off grade/Poor quality production;7% while Global <1%.
- PROCESS LOSS in SPECIAL GRADES:10% while Global:1%.
- Number of Heats/Tapping in converters:25 against Global:35.
- Average Fe level in Iron Ores used; 60% while global 62%
- Average Ash in Coke 12% while global 10%.
- Ore Beneficiation snd Coal washing not addressed seriously.
- From Iron to Rolled products Yield:86% against Global 89/90%.
- Transport Costs: almost twice per ton from Raw Materials to finished goods to selling points 80% higher than Global Costs due to distance coverage,lots of transfers by Road and higher prices of Fuels compared to the World!
- Bad Surface features of products at casters due to Slow speed casting and small sequence of heats. Lot of Surface grinding/scarfing losses.
- Technology Upgrading: at least 10 years behind China and the developed World.
- Coal/Coke: Almost 100% of PCI grade and Coke grade Coals of Low Ash are Imported! although Iron Ores are fully Indigenous. Volatility of Coal prices have affected Steel Industry adversely in India like in other parts of the World. Steel companies with captive Coking Coals and Iron Ore mines are best placed in the World as far as profits are concerned. In INDIA captive Iron Ore Mines owners are: SAIL, TISCO, NMDC,SEAL while some others have low capacity Iron Ore mines:like Neco, Bhushan,Jspl, JSW,Electro Steel
- PROFIT EARNERS: JSW, TISCO,SUNFLAG,KALYANI,NMDC,
SesaGoa(Vedanta),Most of Induction Furnace Plants.
- Loss Incurring/Barely surviving companies: Essar,SAIL(govt),RINL(govt) Bhushan both groups,MISA,VISA, Uttam,Electrosteel,NECO,Sona,
Indian Seamless, Mukand,Mahendra.Bajrang Ispat.Ispat Godavari.
- Closed/Almost closed/Awaiting sale:BMM,ISL,some units in Andhra pradesh, west Bengal, Odissa,Tamilnadu, Chhattisgarh...all in capacity range, each plant: 0.1 to 0.3 MTPA.
- Getting Finance from Indian Banks for expansion or green field projects NOT POSSIBLE! Only JSW, TISCO, SAIL are able to expand.
3. Supporting Features in Indian Iron and Steel Sector;
- Extra CUSTOMS duty on Imported Steels (except some typical/special grades) has bolstered the Earning /Contribution margins of Steel Makers.
- Gradually demand increasing but expansion quite less/almost nil.
- Alloy Steel Makers surviving due to very low expansion there and prices increasing!
- Most of Iron & Steel plants have their own captive power plants.
4. FUTURE JOBS for GLOBAL VENDORS:
- Apprise customers on Upgrading both Process and Equipment for Low Energy consumption and better Quality products
- Guide customers for higher through-puts.
- Proper Shutdown/Breakdown maintenance.
- Quality SPARES management.
- ON GREEN FIELD PROJECTS: Ideal Layout.
- Latest Technology on Waste Management, Water consumption etc
- Faults monitoring systems.
- Online Condition monitoring.
- Online Flaw Detectors.
- Supply latest designed Plants and Machinery for upcoming plants and convince buyers about quality equipment even while Indian buyers have inane inclination to lowest priced without bothering for quality. Recent trends, however are for quality machines.
- Keep proper liaison/contacts and follow ups on upcoming plants; both for upgrading and expansions.