Factors that might drive the fluctuating Indian steel market

For the last 4 years, the Steel industry has been facing obscurity. The affects of macro & micro economic
factors is whats making the fluctuating Indian steel market. Steel market is waiting to be rescued by
demand. Factors such as overcapacity, low prices and economic slowdown are adversely affecting it.
India urban population is expected to touch 600 million by 2030 from the current (2013) 400 million. A
rosperous India will need new infrastructure. Government promised for economic growth and infrastructure
investment. If it stays faithful to the 12th Five Year Plan, this will lead to additional demand of 40 MnT pa
of Steel, which is about 60 per cent hike.
The gap between production capacity of 74 MnT and demand of 68 MnT doesnt seem wide. But
companies are made miserable by expensive raw material and competitive imports. The net debt of Indias
top six steel producers combined is about INR 1525.6 billion, which is ever expanding with the shrinking
rupee.
Since Steel making is cash intensive business, its survival depends on strategic cost cutting. The best
decision could be to optimize the operations of factory. It can be done effectively if company can forecast
how prices will behave in the coming months.
Steel production costs are spread amongst many variables such as prices for Iron ore, Coking Coal,
Limestone, Natural gas and Power. Since these are all separate components, risk managers believe that it
couldnt create an effective hedge.
Futures prices are a forecast tool. Decision making on capital investment can be more objective. Knowing
the future revenue in well advance means that producers should be able to better plan capacity. Such
planning may also help to control the working capital.
Banks charge higher interest rates for businesses which they view as being more risky. If a producer can
show that his future cash flow risks are less with a hedge of futures contracts, a bank is likely to lend
cheaper money.
A risk management tool such as futures contracts may help in potentially increasing the available capital,
reducing the cost and thus improving profitability. The open exchange price and related transfer pricing
makes integrated business less risky. Also, the open exchange price allows the whole industry to share the
risk.
Source : http://news.steel-360.com

AIL is on expansion drive as it plans to invest INR 700 billion in mines and steel plants.
With the expansion of its steel-making capacity, state-owned SAIL plans to raise the Iron ore production
capacity to 43 MnT pa by FY15-FY16 from the existing 28 MnT pa.
The countrys largest steel maker is also the second-largest Iron ore producer after
NMDC. SAIL believes that with the ongoing and proposed expansion at the mines, it
would be able to achieve 58 MnT pa Iron ore production by 2020.
It generally takes 1.6 MT Iron ore to produce one MT of steel.
SAIL plans to raise capacity of its Kiriburu mines to 5.5 MnT pa from 4.25 MnT pa now. Also, there are
plans to raise production capacity at Meghataburu and Bolani mines to 6.5 MnT pa and 10 MnT pa from
4.3 MnT pa and 4.1 MnT pa respectively. SAIL plans to raise its Gua mines production capacity to 10

MnT pa from 2.4 MnT pa now. It has proposed to raise capacity of its Barsua, Kalta and Taldih mines to
6.5 MnT pa from 3.3 MnT pa.
The major boost in Iron ore production might come from the Rowghat mine, where the company plans to
produce 12 MnT pa Iron ore. SAIL has already received all statutory clearances for the mine to develop.
The company gets all its Iron ore needs from captive sources. SAIL is in the process of investing INR 700
billion on its mines and steel plants.
This will not only enhance SAILs contribution to nation building but will put SAIL among the top steel
companies globally, said CS Verma, Chairman of SAIL. He was outlining the companys ambitious plans
to shareholders at the companys 41st Annual General Meeting recently.
NCDEX launches modified Steel futures with compulsory delivery
Commodity Online reported that India's National Commodities and Derivatives Exchange is launching a
new steel futures contract with compulsory delivery with an option to opt for warehouse delivery and direct
delivery to be executed by buyers and sellers Contracts expiring in December 2013,January 2014,February
14 and March 14 will be available for trading from Thursday November 21st 2013.
The Steel Long contract with base centre at Ghaziabad will have delivery centres at Mandi Gobindgarh,
Raipur, Mumbai, Chennai, Jaipur and Jharsuguda, base grade commercial and delivery mechanism through
warehousing.
The other contract Steel Long IS 2830 will have the base centre at Mandi Gobindgarh with delivery centres
at Mandi Gobindgard, Ghaziabad, Mumbai, Raipur, Hyderabad, Jaipur and Kolkatta. It will follow a
warehousing model plus direct delivery mechanism.
According to exchange officials, the direct delivery mechanism will help traders bypass the warehousing
mechanism and thus reduce the various costs associated with storage and logistics.
Clearing and settlement of contracts will commence with the commencement of Tender Period by
compulsory delivery of each open position tendered by the seller on T + 2 to the corresponding buyer
matched by the process put in place by the Exchange. Upon the expiry of the contract all the outstanding
open position shall result in compulsory delivery.
Earlier, NCDEX had a steel long futures contract which was discontinued due to insistence of BIS mark
and related issues.
Source - www.commodityonline.com
(www.steelguru.com)
Rebar TMT QST price movement in India on November 21
TMT
Fe 415
12mm
Location

Change

Ahmedabad

100

Bangalore

Chennai

Delhi

Hyderabad

236

Indore

400

Kanpur

Kolkata

300

Ludhiana

104

Mandi

Mumbai

234

Raipur

Rudrapur

Muzaffarnagar

Change is on 21st November 2013 as compared to 20th November 2013 Change is in INR per tonne
Source - Steel Price India
(www.steelguru.com)
Indian steel price index ump by 8 points on November 21
The Indian Long Product Price Index ILPPI has inclined by 17 points, whereas Indian Flat Product price
index IFPPI has remained stable. The overall Indian Steel Price Index INDSPI has gone up 8 points.
Class

20-Nov

21-Nov

Change

ILPPI

8776

8793

17

0.2%

IFPPI

8737

8737

0.0%

INDSPI

8756

8764

0.1%

ILPPI Long Product Price Index

IFPPI Flat Product Price Index
INDSPI Indian Steel Price Index
Long Products
Category

20-Nov

21-Nov

Change

PI - TMT

8891

8907

16

0.2%

PI - WRC

8886

8912

26

0.3%

PI - Angle

8377

8377

0.0%

PI - Channel

8455

8445

-10

-0.1%

PI - Joist

7701

7712

11

0.1%

PI Product Index
Flat Products
Category

20-Nov

21-Nov

Change

PI - Narrow Plates

8223

8223

0.0%

PI - Wide Plates

8495

8494

-1

0.0%

PI - Hot Rolled

8408

8408

0.0%

PI - Cold Rolled

9332

9332

0.0%

PI - Galvanized

9160

9160

0.0%

Steel angle price movement on November 21

ANGL
GR A
65X6
Location

Change

Ahmedabad

-236

Bangalore

Chennai

Delhi

Indore

Kanpur

Kolkata

Ludhiana

209

Mandi

Mumbai

234

Raipur

Rudrapur

Change is on 21st November 2013 as compared to 20th November 2013

Change is in INR per tonne
Source - Steel Price India
(www.steelguru.com)

India's steel output growth slows to 2.8% in Jan-Oct at 66 MT

Hit hard by the slowdown in economy, India's steel production growth eased to just 2.8% in JanuaryOctober this year but the country faces no immediate threat of being dislodged from its position as the
fourth largest steel producer globally.
Global industry body World Steel Association (WSA) data today showed India produced 66.387 million
tonnes (MT) steel during the first ten months of the current year compared to 64.556 MT in the same period
last year.
The growth in production during January-October period of 2012 at 64.556 MT was 5.6% higher than
61.077 MT output recorded during the corresponding period of 2011.
Industry officials blame the subdued steel production growth to slow expansion of the economy.
Economic growth of a country has a direct bearing on steel production. The usage of steel often mirrors the
health of an economy and usually rises by 1.5 times of the country's GDP growth rate.
The economic growth rate slipped to decade's low of 5% in 2012-13 and during the first quarter of current
fiscal it stood at 4.4%. The growth figures for the second quarter are scheduled to be announced on
November 29.
The feeble economic growth appears to have impacted steel-consuming segments like real estate and
consumer durables, which are the major consumers of the alloy.
India's steel output growth at 2.8% in the first 10 months of the current year compares with 3.2% average
growth recorded worldwide. China's steel industry saw its output grow by 8.3% in the same period.
World's steel production stood at 1,321 MT and China's 884 MT during the same period.
Amid the slowing steel output, data suggests that India is unlikely to be dislodged from its fourth largest
global producer tag, which it has been holding for some years now. Its immediate competitor for the
position, Russia, is close to 10 MT away.
No change in the top four of the global order is also likely soon. China, which is miles ahead from the
second best, Japan, is expected to retain its numero uno position. Japan so far has produced 90 MT. US is
also expected to retain the third position. It has produced 73 MT steel during the January-October period of
the current year.
Source : Business Standard
Friday, November 22, 2013 | 03:23 PM IST

Primary Steel Producers are Likely to keep Finish Long Prices Unaffected
Primary steel producer had kept their finish long offers unchanged for November13 and it seems that they
are likely to keep it same again for December13 as finish long market need some more improvements in
demand.
On the other hand in secondary Re-bar market premium brands prices increased by INR 1,300-1,900/MT.
In Maharashtra Guardian TMT a Mumbai based brands prices increased by INR 1,900/MT from 1 Nov, to
till date. 20mm TMT is offered at INR 35,300/MT exclude taxes.

Anant TMT manufacturer, based at Indore, MP has increased its prices by INR 1,300/MT in same period
(from 1 Nov to till date). Presently its offer is at INR 36,100/MT for 20mm. (Basic Price)
High Raw material and Semi finish products prices are the reasons behind these increment in prices.
Primary TMT prices (in INR/MT) as on month Nov 2013
Region

Particular

Price (Basic)

Price#(All Tax)

M-O-M

North India

Delhi/NCR

38,000

44,800

- 250

West India

Mumbai

37,200

43,900

- 350

Chennai

38,800

45,800

- 250

Hyderabad

37,800

44,600

- 350

South India

Monthly Assessment
Size 12MM
Grade- 500 Fe
Excise Duty @ 12.36% ;VAT as applicable.
# Prices including all taxes
India: Re-Bar Prices increases owing to Shortage of Semi Finish Products
Indian Manufacturers have to increase the price of Re-bar by INR 200-500 per MT in last 2-3 days owing
to the hike in prices of Semi Finish product.
In Central India, Re-bar prices have moved up by INR 200-300 per MT from yesterday owing to shortage
of Ingot and Sponge. In addition, there is some demand in Raipur and Raigarh from MP. In Raipur and
Indore 20 mm Re-bar is traded at INR 30,500 per MT and at INR 35,100 per MT respectively.
In Maharashtra, Mumbai based Shree Vaishnav Industries Private Limited, with a Re-bar production
capacity of approx 18,000 MT per month has increased its Re-bar price by INR 400 per MT in last 2-3
days. 20 mm Re-bar is now offered at 34,100 per MT.
The demand for finish product after Diwali was good, but right now we have a normal demand for the
product. It seems that steel market will either sustain or go up, said a Re-bar trader based at Mumbai.
Few days back, in Hyderabad, a spurt of INR 200-300 per MT was seen in TMT and Ingot due to little
increment in local demand. Presently 20 mm Re-bar is quoted around at INR 31,700-32,000 per MT.
Market participants are of the view that there are fewer chances of rates to decrease, many plants have shut
down while some are running at very low production capacity, creating product shortage across the cities.
Note: All prices are Basic.
Price#(All
Change W-O-W M-O-M
Tax)
Indian 12 mm Re-bar prices (in INR/MT) as on date 19-Nov-2013
32,800
38,700 0
+ 400
- 700
Ghaziabad
Mandi
35,250
41,600 0
+ 150
NA
North
Gobindgarh
India
33,000
38,900 0
+ 400
- 700
Delhi/NCR
32,400
38,200 0
+ 400
- 700
Muzaffarnagar
30,300
35,700 0
- 100
- 900
Rourkela
East
30,900
36,200 + 200
+ 200
- 350
India
Durgapur
Region

Particular

Price (Basic)

31,100
Raipur*
35,500
Indore
30,000
Raigarh
34,100
Jalna
34,100
Mumbai
West
33,000
Ahmedabad
India
34,900
Goa
32,900
Jaipur
33,400
Chennai
South
32,850
Hyderabad
India
34,400
Bangalore
Daily Assessment
Grade-415/500 Fe
Excise Duty @ 12.36%; VAT as applicable.
*Payment next day
# Prices including all taxes
Central
India

36,000
41,900
35,400
40,200
40,200
38,900
41,200
38,800
39,400
38,800
40,600

0
+ 300
0
+ 100
+ 200
- 100
+ 300
0
0
0
0

+ 450
+ 600
0
0
+ 100
0
+ 100
+ 250
0
+ 650
- 400

- 500
- 150
- 600
+ 200
+ 600
- 700
- 200
- 900
- 400
+ 350
0

India: Re-bar Prices inch up in Central and Northern Region

Re-bar prices increased by INR 200-300 per MT in Central and Northern Region from last trade.
Chhattisgarh
Re-bar prices have increased by INR 200-300 per MT in Raipur for the
reason that Semi finish prices increased in city. Ingot and Billet
manufacturers have cut their production on dull demand in steel market.
There are approx 15-20 manufacturers who have more than two or three
furnaces, using only one or two of them. This resulted in shortage of Semi
finish products and hike in product prices.
An average price for 20 mm TMT is around at INR 30,200-30,500 per MT
which is increased by INR 200-300 per MT. Whereas GK TMTs price is
untouched for the day and 20 mm Re-bar is quoted at INR 31,200 per MT.
Madhya Pradesh
Anant Steel Pvt. Ltd. with a Re-bar production capacity of approx 14,000MT per month based in Indore
has increased its prices by INR 300 per MT from last trade. 20 mm TMT is offered at INR 34,800 per MT.
Uttar Pradesh
Ingot and TMT prices have moved up by INR 100-300 per MT in Muzaffarnagar because of increased
Ingot prices in Mandi Gobindgarh. MS Ingot and 12 mm TMT are offered at INR 30,400 per MT and INR
32,500 per MT respectively.
Above mentioned all Prices are Basic.

RE-BAR PRICES INCREASED BY INR 400-500/MT IN SOUTHERN REGION IN LAST TWO

DAYS.
Andhra Pradesh
In Hyderabad Semi Finish and Finish long product prices inched up as some furnaces and rolling mills have
shut down in city. Shortage of the material in market, resulted in its price increase by INR 400-500/MT. 20
mm TMT is offered at INR 31,500/MT.
Karnataka
Ingot and TMT prices have moved up by INR 500/MT in Bangalore yesterday. This hike was made on
account of good demand from Hyderabad and local market. 12 mm TMT and MS Ingot are offered at INR
34,800/MT and INR 29,700/MT respectively.
Tamil Nadu
Semi Finish and Finish Long prices are continuously unchanged from a long time in Chennai. MS Ingot
and 12 mm TMT offers are at INR 28,900/MT and INR 33,400/MT respectively.
According to market participants It will not be beneficial for us if we reduce the steel prices according to
the other steel market. When we reduce the product prices, buyers wait for some more corrections. So we
have decided not to make any changes according to the other markets.

ABOVE MENTIONED ALL PRICES ARE BASIC.

Ingot prices blinks at last but steel rebar clings on for a while
Having gathered enough flab over the last fortnight pencil ingot price levels corrected at most locations in a
bid to bring symmetry with the finished price levels. The lopsided rally in pencil ingot price levels fuelled
by high scrap levels and shortage finally sputtered without much support from finished buying.
Over the last 1 week TMT price levels had reacted in controlled manner since
Relentless hike in pencil ingot pushed it out of indolence.
Most of the mills are yet to announce December price but at least one major
Producer has hiked long price by INR 500-1000 per tonne without evoking much response from buyers.
Clarity will dawn in next couple of days after most of the mills announce December price. In the
unlikelihood of easing in credit rates and scrap price level likely to remain buoyant melodrama is set for
more action with no result in December.
Pencil Ingot
Location

Change

Mumbai

-300

Chennai

Kolkata

-250

Mandi

-300

Raipur

-250

Alang

-100

Kanpur

Rudrapur

Ahmedabad

-201

Ghaziabad

-300

Muzaffarnagar

-108

Hyderabad

200

Raigarh

-300

Durgapur

-300

Nagpur

Jamshedpur

Jaipur

-200

Rourkela

-368

Bhiwari

-150

Ludhiana

362

Change is on 2nd December 13 as compared to 29th November 13

Change in INR per tonne
Rebar (TMT/QST)
Location

Change

Mumbai

-351

Chennai

520

Kolkata

Delhi

Mandi

Raipur

Kanpur

Rudrapur

Ahmedabad

300

Hyderabad

Indore

600

Bangalore

Ludhiana

104

Muzaffarnagar

Change is on 2nd December 13 as compared to 29th November 13

Change in INR per tonne
Source - Strategic Research Institute
(www.steelguru.com)

India: Demand for Wires improve with rising offers

Indian Wires offers are on a consistent rise; an increase of INR 200-300/MT was recorded today. Demand
picked up as market participants expect prices to increase further.
In Raipur, Wire offers moved up by INR 200-300/MT from the last trade. 5.5 mm Wire Rod and 20 Gauge
Binding Wire was offered at INR 39,900/MT and INR 46,000/MT respectively.
Raipur is witnessing a shortage of Binding wires as some manufacturers have not stared production after
Diwali. Queries for GI and Barbed wires have increased quite a bit.
In Durgapur, wires are being quoted higher but buying is still low. 5.5 mm Wire Rod is being offered at
INR 38500/MT which is INR 200/MT higher than the last trade.
Note: Prices are Inclusive of VAT.

India: Wire Rod Prices slashed by INR 200-400/MT in a day

Indian Wire Rod Prices have corrected by INR 200-400/MT from last trade.
In Raipur and Durgapur Wire Rod prices have come down by INR 200-400/MT from last trade. Industry
demand for Wire Rod is not encouraging from past few days owing to festive season and fall in semi
finished and finished steel prices all over India.
Presently in Raipur, 5.5 mm is traded at INR 38,350/MT and in Durgapur the same is offered at INR
36,800/MT. Prices include VAT
RINL, a Primary Wire Rod producer has kept their offers unchanged for 8 mm size. Whereas a negligible
hike of INR 50/MT has been made in 7 mm size.
Vizag
Wire rod 7 mm at INR 42850/MT
Wire rod 8 mm at INR 42750/MT
Prices include ED, VAT Extra.

Increased Steel Prices are Center of Attention to Finished Buyers

Steel prices (Ingot, Billet, Sponge and Finished products) increased by INR 700-1,400/MT in last one
week across India.
Limited production of Ingot/Billet due to low conversion cost and shortage of Raw
material have increased the product prices creating center of attention to finished
buyers. Eyeing the spurt in Steel prices finished demand has increased in some
places of India.
In Rajasthan, Re-bar prices are increased by INR 1,400/MT on W-o-W basis. In
Jaipur 12mm Premier Re-bar is being quoted at INR 35,900/MT, INR 300 higher from last trade. (Basic
Price)
According to a Re-bar trader based at Jaipur Ingot prices are increasing 2-3 times in a day and it is
attracting the demand for finish buying.
Whereas in some places Re-bar manufacturers have changed the prices of Re-bar gauge difference to make
a balance in conversion. In Muzaffarnagar, Jaipur and Durgapur the prices on Re-bar gauge difference are
increased to about INR 300-500 in various sizes.
Gauge Difference

JSW hopes that 2014 will be a better year

Business Standard reported that with the possibility of iron ore prices coming down and steel prices
remaining stable, leading domestic firm JSW Steel said that things are looking up for the industry next
year.
Mr Seshagiri Rao Joint MD and Group CFO of JSW Steel said that On iron ore, analysts have a lot of
expectations. Huge supply will be there in market next year. At the same time, demand from China is likely
to come down. Based on these 2 factors, iron ore price may not go up next year.
Mr Rao said that Steel demand this fiscal is flattish as the consuming industries are not growing. That is
also getting reflected in flattish consumption of steel. The demand has to revive to see the growth in the
steel sector.
He said that steel prices in India, which are often linked to international prices, would remain stable as
demand for steel would be better next year with recovery happening in the US and the bottoming out of the
European economy. He added that Recovery happening in the US market and consumption will go up
there. Europe is already at the bottom, so there can be some recovery there. Japan is reasonably doing well
and Korea is quite okay. So, only thing we need to watch is China, which is expected to slow down next
year. These would keep steel prices stable next year, when raw material prices are expected to come down.
2014 is expected to be better for steel industry.
Source Business Standard
(www.steelguru.com)

Majority of steel units in North India running below 50% capacity CII
CII Accenture report said that majority of iron and steel units in northern India are running at below 50% of
their capacities primarily because of power shortage and spiralling input cost.
The report said that Most steel mills are running at less than 50% of their respective rated capacities
because of poor supply and rising input cost. The power outages in northern states are resulting in
production losses and forcing many mills to work only single shifts.
The report on Indian Steel Industry-An overview and growth prospects of steel industry in north India
further pointed out that rupee depreciation against the US dollar has not only raised industrys input cost
but also dealt a severe blow to industry as it faced cancellation of export orders.
It said that Depreciation of rupee resulted in significant increase in cost of imported steel melting scrap, a
major input in secondary steel production. Further due to rupee depreciation, export orders have been
cancelled or deferred, which is another set back for the steel industry in north India.
Suggesting measures for de-bottlenecking steel sector in north, the report said that the steel suppliers
should play a major role in implementation of mega investment projects, including USD 100 billion Delhi
Mumbai Industrial Corridor, export zones and industrial parks across Rajasthan, Haryana and western UP
as these projects will continue to drive sustained demand for long steel.
Presenting potential growth constraints, the report said the growth in steel market is expected to be muted
in short term on account of poor growth in core consumer sectors.
It said that The demand is expected to rebound in later half of 2015 with growth in infrastructure as
announced in 12th 5 year plan. Growth in automobile and consumer durable sectors will also support
demand growth in long run.
Regulatory hurdles and land acquisition challenges remain the largest supply side constraint for Indian steel
market.
Indias northern steel hub contributes about 16% to countrys annual steel output with hub comprising
multiple small and medium units primarily induction furnaces and steel re rolling mills located in and
around Punjab and Haryana. These units cater to construction and light engineering sector including bicycle
and auto parts. Uttar Pradesh is the largest producer and consumer of steel in north India with production of
5.6 million tonne per annum.
Source - PTI
(www.steelguru.com)

Steel producers urge Punjab govt to slash entry tax

Business Standard reported that perturbed over the high entry tax in Punjab, as compared to states like
Uttar Pradesh, Haryana, Rajasthan and Delhi, iron and steel producers located outside the state feel that it is
detrimental to the iron and steel based industry in the state and urged the government to bring it on a par
with the neighbouring states.
It is worth mentioning that Haryana charges 1% entry tax on iron and steel. Recently, Uttar Pradesh has
also brought it on a par with that of Haryana by reducing it to 1% from 5%, whereas Punjab has imposed
5% as entry tax, the highest among the neighbouring states. Further, states like Delhi and Rajasthan have
no entry tax on iron and steel produced outside the state.
Speaking to Business Standard Mr V R Sharma deputy MD and CEO of Jindal Steel & Power Limited said

that With annual consumption of 5 million tonne of iron and steel, Punjab features among the states where
there is high consumption. But the imposition of five% entry tax on iron and steel produced outside the
state is detrimental to the iron and steel based industry located within the state. According to him, this
makes the input cost higher as compared to other manufacturers which based in other states.
Sharing his views, Mr A S Cheema director of Cheema Boilers said that Its important that the
manufacturers using iron and steel as raw materials procured from outside the state, should do value
addition in their finished goods in order to sustain, otherwise its very difficult to survive in this pricesensitive market. Therefore, manufacturers need to improve their understanding of buyer values and create
innovative products targeted at different customer segments.
However, responding to industrialists request, Mr Karan Avtar Singh principal secretary of industries &
commerce Punjab said that The imposition of entry tax on iron and steel was done in order to promote the
industry located inside the state. We expect new capacity addition will happen in this sector and it will
attract new investments.
According to the state government officials, if the sale of goods is within the state, the entry tax is adjusted
but if it is outside the state, it cannot be reimbursed by the state.
Experts are of the view that the imposition of entry tax on iron and steel makes the input cost higher and the
goods manufactured in the state become non competitive as compared to the goods produced in other
states.
Source Business Standard
(www.steelguru.com)
Foundation stone of POSCO steel project unlikely next month
The Statesman reported that speculation over the foundation stone for the much delayed POSCO steel plant
project being laid next month has died down as local people here feel that it is highly unlikely.
Reliable source said that Setting a date for the foundation stone laying ceremony is difficult but given the
pace of progress of work and the activities of the district officers , it now seems unlikely that the ceremony
will take place next month.
Reliable sources said that both the district collector and SP will be on a foreign tour from 3 to 23 January.
Hence, the foundation stone laying ceremony will not take place next month.
The talk of a January deadline for the ceremony started ever since South Korean diplomat Mr Joon gyu Lee
met chief minister Mr Naveen Patnaik in October and said that he was hopeful of an early ground breaking
ceremony. He had also stated that the South Korean President was scheduled to visit India in January and
the foundation stone laying ceremony for the project could be lined up accordingly.
As on date the company has possession of 1703 acres of land as against its minimum requirement of 2700
acres. The company has repeatedly said that it will start work only after it gets the entire 2700 acres need
for the first phase of the plant. The National Green Tribunal which stayed felling of trees in the project site
villages is yet to dispose the case.
The district administration has acquired 2858 acres at the project site, out of which 2700 acres will be given
to POSCO with rest being earmarked for establishment of ancillary industries.
Source - The Statesman
(www.steelguru.com)

India: Re-bar Prices increased up to 1-2% from Yesterday

Re-bar prices are fluctuating in the range of INR 200-400/MT from last one week. Today, its pric es inched
up by INR 200-300/MT across India.
Sources say that the major reasons behind the increment are:

Raw material shortage: Transporters strike in Gujarat has created

shortage of Scrap in Gujarat and Mandi Gobindgarh.
High Ingot/Billet prices: Due to scrap shortage in North India,
Ingot/Billet manufacturers have kept their offers higher up to INR 200-300/MT.
Improving demand: According to a Re-bar manufacturer based in Raipur Inquiries for Re-bar
have increased from yesterday. Now, our offerings are increased by INR 200-300/MT from last
traded figures.

Although, the demand for finished goods is not much encouraging in other cities, but above mentioned
reasons have made the Re-bar sellers to keep the high offers.
Source - www.steelmint.com

Fewer Chances of downfall in Re-bar Prices: Market Participants

Buying interest in Re-bars is quite stable but manufacturers dont see any
major downfall further in prices.
Market participants views are positive for finish market as Iron ore and
Ingot/Billet prices improved in this week.
Yesterday, Ingot prices in Mandi Gobindgarh went down by INR 100-200/MT in
morning trade followed by other cities who also cut offers by INR 100-200/MT for Ingot as well as Rebars. But, as few of the miners in Odisha hiked up offers for Iron ore by INR 200/MT; rates went up by
INR 200-300/MT by the evening.
According to a Re-bar manufacturer in Rourkela, There is a labor shortage in Rourkela as labors have
gone for harvest. Re-bar prices may improve only towards the end of next week as harvesting season
should end. At present, 12 mm Re-bar offers in Rourkela are in the range of INR 30,900-31,400/MT.
A Re-bar trader based in Jaipur, Rajasthan said, According to the Ingot price fluctuation, we reduced Rebar prices yesterday. Today, Ingot prices moved up by INR 300/MT but since the demand is not strong
enough, that we can improve our offers. We are offering 12 mm Re-bar at the same level at INR
34,000/MT.
Note: Prices are Basic.
Indian 12mm TMT prices (in INR/MT) as on date 06-Dec-2013

Price (Basic)

Price#(All
Tax)

33,600

39,600

- 600

+ 600

36,100

42,600

- 400

+ 700

Delhi/NCR

33,800

39,900

- 600

+ 600

Muzaffarnagar

33,200

39,200

- 600

+ 600

Rourkela

30,900

36,500

- 500

+ 400

Durgapur

31,500

37,200

+ 200

- 700

+ 500

Patna

35,200

41,500

NA

NA

Giridih

32,600

38,500

NA

NA

Raipur*

31,300

36,200

+ 200

- 400

Indore

36,300

42,800

- 400

Raigarh

30,700

36,200

- 700

+ 600

Jalna

34,600

40,800

- 200

+ 800

Mumbai

34,800

41,100

+ 200

West

Latur

35,100

41,400

India

Ahmedabad

33,400

39,400

- 200

Goa

35,900

42,400

+ 1,100

Jaipur

34,000

40,100

- 700

+ 1,100

Chennai

34,000

40,100

Hyderabad

33,250

39,200

- 650

+ 1,250

Bangalore

35,700

42,100

+ 300

+ 1,500

Region

Particular
Ghaziabad
Mandi

North

Change

W-O-W

M-O-M

Gobindgarh

India

East India

Central

+ 400
NA

India

South

+ 1,650
NA

NA
+ 100

+ 400

India

Daily Assessment
Grade-415/500 Fe
Excise Duty @ 12.36%; VAT as applicable.
*Payment next day
# Prices including all taxes
Source - www.steelmint.com

Sponge iron prices in Eastern region of India, which contributes almost 60 percent of total installed
sponge iron capacity, have fallen down by INR 400-500/MT in a weeks time. However sponge prices
in Western region firm up on limited supply of imported scrap
Indian sponge iron prices have shown some resistance after an increment last week. Prices are down by
almost INR 400-500 per tonne in this week largely owing to weak demand in finished steel.Current offers
are prevailing in the range of INR 18,200-20,200/MT (USD 290-320) on ex works basis.
Chhattisgarh is the largest sponge iron producing state in India with an installed capacity of over 11 million
tonnes per annum. Prices have come down by INR 500 and currently being offered at around INR
20,200/MT on ex- works basis.
Sponge prices have come down marginally, however there is no reason for prices to correct. There is
shortage of iron ore in the market. Matter of the fact is miners like Rungta, Essel and NMDC have raised
their ore prices by INR 200/MT. Downside looks limited. said Mr G. Agarwal, senior executive, with
one of the sponge iron unit based in Raipur, Chattisgarh.
On the other hand, sponge iron prices in Indias western region is firm due to consistent fall in imported
scrap. At some places prices have also gone up by INR 200-300/MT. Induction furnaces in western region
which are largely dependent on imports of scrap have been facing short fall due to weak Rupee and rising
global prices.
Indian Sponge Iron Prices in INR/MT (Ex-Works) as on date 4th Dec 2013
Region

Particular

Grade

Price (Basic) Change

North India

Mandi Gobindgarh
Rourkela
Durgapur*
Raipur*
Raigarh*
Bellary

78-80 FeM
78-80 FeM
78-80 FeM
80 FeM
79-80 FeM
75 FeM

22,500
18,200
19,100
20,200
19,300
19,000

East India
Central India
South India

0
100
200
100
300
0

W-O-W
+ 200
- 400
- 500
- 300
- 600
+ 400

Source - www.steelmint.com
India: NMDC hikes Iron ore Prices the 2nd Time in Q3 FY14
NMDC, a state owned and Indias largest Iron ore miner, has raised Iron ore offers by INR 200/MT
for Dec 2013. The miner has an installed capacity of 32 MnT pa and produces about 27-28 MnT.
The company revises Iron ore prices on a monthly basis. This is the 2nd time that NMDC has been able to
lift offers in Q3 FY14. In October, offers had increased by INR 100/MT, after a years time.

On what grounds is NMDC charging high for Iron ore?

For December bookings, miners in Odisha increased offers amid low output and better buying
volumes.

NMDCs Iron ore production (2.56 MnT) and sales (2.44 MnT) increased M-o-M in November
2013. In October, it produced 1.9 MnT and sold 2.26 MnT. In November, numbers were lower
than expected because of unavailability of required number of rakes, issues with equipment,
loading problems and impact of post monsoon, said sources.

Sponge iron market is looking up because of shortage of Scrap in domestic market and landed cost
of imported Scrap is still high. INR is at 62 against USD, pushing up domestic prices of Sponge
iron and Scrap.

What CGSIMA has to say?

Our cost of production has gone up by INR 500/MT because of NMDCs Iron ore price rise. Therefore,
Sponge iron makers will prefer to place bookings as per requirement only, remarked President of
Chhattisgarh Sponge Iron Manufacturers Association (CGSIMA).
Iron Pellet makers in Karnataka worry on expensive Ore
Buying volumes in lumps might come down further in NMDCs Iron ore e-auction in Karnataka because
of price rise. Also, Pellet producers are likely to lift offers in the current month in line with high Iron ore
prices, said a Pellet manufacturer located in Karnataka.
On the other hand, Steelmakers in Karnataka cheer as the state government has requested Supreme Court to
increase capped Iron ore output (at 30 MnT now) to 40 MnT. Sources said that Supreme Courts hearing is
expected to take place in the week ahead.
Source - www.steelmint.com
Indias Largest Re-bar Producers keep Prices Unchanged for Dec13
RINL, Indias first shore based integrated Steel plant located at Visakhapatnam in Andhra Pradesh
produces approx 2.5 MnT Bars and Rods every year, has kept its Re-bar prices untouched for Dec13. On

the other hand a negligible increment of INR 200/MT is made in Wire Rod prices. Other primary steel
producers like Tata and SAIL have also kept their Re-bar prices unaffected for Dec13
RINL is offering its Re-bar (8 mm) at below mentioned price:
At Vizag: INR 44,350/MT
At Mumbai: INR 45,050/MT
At Kolkata: INR 45,050/MT
Note: All prices include ED.
Respective dealers are also kept Re-bar offers unchanged as buying interest for finish long went down from
last few days.
According to the dealers Company roll over the Re-bar prices for Dec13. They had kept their Re-bar
offers unchanged for Nov13. Despite of this, we had raised our offers for few sizes like 12mm, 10mm in
month ending on account of low inventory and hike in secondary Re-bar prices. We dont have any kind of
reasons this time so we are also keeping it same.

Source - www.steelmint.com
Primary Steel Producers are Likely to keep Finish Long Prices Unaffected
Primary steel producer had kept their finish long offers unchanged for November13 and it seems that they
are likely to keep it same again for December13 as finish long market need some more improvements in
demand.
On the other hand in secondary Re-bar market premium brands prices increased by INR 1,300-1,900/MT.
In Maharashtra Guardian TMT a Mumbai based brands prices increased by INR 1,900/MT from 1 Nov, to
till date. 20mm TMT is offered at INR 35,300/MT exclude taxes.
Anant TMT manufacturer, based at Indore, MP has increased its prices by INR 1,300/MT in same period
(from 1 Nov to till date). Presently its offer is at INR 36,100/MT for 20mm. (Basic Price)

High Raw material and Semi finish products prices are the reasons behind these increment in prices.
Primary TMT prices (in INR/MT) as on month Nov 2013

Region

Particular

Price (Basic)

Price#(All Tax)

North India

Delhi/NCR

38,000

44,800

- 250

West India

Mumbai

37,200

43,900

- 350

Chennai

38,800

45,800

- 250

Hyderabad

37,800

44,600

- 350

South India

M-O-M

Monthly Assessment
Size 12MM
Grade- 500 Fe
Excise Duty @ 12.36% ;VAT as applicable.
# Prices including all taxes
Source - www.steelmint.com
Steel minister update on SAIL VISL
The Minister of Steel, Mr Beni Prasad Verma has said that at Visvesvaraya Iron and Steel Plant,
Bhadravati, Steel Authority of India Limited is continually investing for overall growth & improving
profitability of the Plant.
SAIL has already implemented a 350x350 mm single strand bloom caster with 1,25,000 T annual capacity
at an investment of around INR 80 crore. Further, one 30T Pusher type Reheating Furnace for Primary Mill
costing about INR 10 crore has also been implemented.
In a written reply in the Lok Sabha Mr Verma said that SAIL has invited Expression of Interest from
interested parties willing to enter into a JV with Steel Authority of India Limited for manufacture of steel
and related products at VISP, Bhadravati. Karnataka, India. SAIL, intends to induct a Strategic Alliance
Partner to form a JV Company which shall carry on the business relating to VISP. VISP has been incurring
losses for the last few years. In view of the above, feasibility of revival of VISP by induction of a JV
partner is being explored for which EoI has been issued.
The Minister said that Letters/Representations have been received from some MPs, MLAs and the unions
of employees of VISP, after issuance of the EOI. The concerns raised have been taken note of by the
management.
Mr Verma said that the total finished saleable stock of VISP materials as on November 1st 2013 is 31,517
tonne of which 30,639 tonne is lying at the Plant and balance 878 tonne at the Warehouses. Due to the high
production cost at VISP owing to the lack of linkages of iron ore and coal as well as inefficient technology,
the overall sales performance of VISP materials has
declined during the first 6 months of this financial year. Poor demand from units consuming alloy steels
materials has aggravated the situation for this industry as a whole, wherein overall capacity utilization has
been at the level of 55 to 60%.
Source - Strategic Research Institute

(www.steelguru.com)
Research and Development in Indian Steel Sector - Mr Beni Prasad
The Minister of Steel Mr Beni Prasad Verma has said that major steel companies like Steel Authority of
India Limited and Rashtriya Ispat Nigam Limited in the public sector and Tata Steel Limited, JSW Steel
Limited, Essar Steel Limited and Jindal Steel & Power Limited in the private sector are engaged in
Research and Development work in the iron and steel sector in the country.
In a written reply in the Lok Sabha today Mr Verma said that there have been substantial achievements
from the R&D programmes pursued by the companies during the past which inter-alia covers:1. Raw Materials upgradation,
2. Improvement in Process/ Technology, Products and Productivity,
3. Development of New products & improvement in Quality, and
4.Improvement in Energy consumption & Environment Management.
The Minister said that according to information available from RINL, total budget allocation earmarked for
R&D in the 12th Five Year Plan is INR 335 crore. No such budget allocation has been earmarked for the
12th Five Year Plan by other companies. The total budget allocated and expenditure incurred on R&D
activities during the first 2 years of the 12th Five Year Plan period by the 2 public sector steel companies
are given hereunder:
Company

2012-13

2013-14

Budget

Expenditure

Budget

Expenditure

SAIL

145

156

69.00*

86.00*

RINL

30

31.13

50

30.52**

(In INR crore)

Mr Verma said that a new scheme Promotion of R&D in Iron & Steel Sector was introduced by the
Government in the 11th Five Year Plan which has been continued in the 12th Five Year Plan. Government
has allocated INR 200 crore on R&D during the 12th Five Year Plan Period. A New Component is being
added in the aforesaid scheme for development of technology for Cold Rolled Grain Oriented electrical
steel sheets and other value added innovative steel products
Source - Strategic Research Institute
(www.steelguru.com)
30% export duty on iron ore pellets needed - ASSOCHAM
Apex industry body ASSOCHAM has urged the centre to impose 30% export duty on iron ore pellets, fines
and lumps with immediate effect to discourage circumvention of export duty and increase iron ore
availability for domestic steel industry.
The Associated Chambers of Commerce and Industry of India in a communication addressed to the union
finance minister, Mr P Chidambaram said that The iron ore production in India has plummeted
significantly by 14% to 70 million tones in the first half (H1) of 2013-14 from the level of 82 million tones
in the corresponding period last year, said
ASSOCHAM said that The rampant exports of iron ore from India have made it a rare commodity for the

domestic iron and steel industry as exports of iron ore surged by a whopping 129% to 5.33 million tones in
the second quarter of the ongoing financial year 2013-14 from 2.33 million tones in the first quarter.
Ironically, while the domestic iron and steel industry is facing severe shortage of iron ore and is operating
at very low capacity utilization, at the same time the exports of iron ore are registering a triple digit growth
on sequential quarter basis.
It added that The growth in exports of iron ore is being achieved due to massive difference in exports duty
of pellets and iron ore as there is 30% duty on iron ore lump and fines whereas pellet exports do not attract
any duty.
ASSOCHAM said that Iron ore producers in India are taking an advantage of zero export duty on pellets
and circumventing exports of iron ore through pellets, more so as there is hardly any value addition in
conversion of iron ore fines to pellets.
While the crude steel production in India has grown by three per cent in H1 of 2013-14 as against the same
period of 2012-13, there has been a continuous growth in demand for steel in India and to fulfill the same
there has been significant upsurge in imports of steel and its related commodity like scrap, direct reduced
iron (DRI) and pellets.
ASSOCHAM said that Almost USD 3.5 billion of precious foreign exchange have already been spent on
imports of commodities like steel, scrap, sponge iron and iron ore pellets in the H1 of current financial
year.
ASSOCHAM has thus appealed to the government to take an immediate action to restrict export of iron ore
pellets from the country which is bleeding Indias economy by contributing to rising current account
deficit.
Even Indian Railways considers pellet export as indirect way of exporting iron ore as it considers export of
iron ore and pellets in same category and impose railway freight even in case of export of pellets,
highlighted ASSOCHAM.
Source Strategic Research Institute (www.steelguru.com)
KIOCL slams Assocham demand on imposing duty on pellet exports
Economic Times reported that state owned pellet manufacturer KIOCL slammed industry body Assocham
for proposing imposition of export duty on the value added product of iron ore, terming the claim that it
would improve availability as baseless and incorrect.
Mr Malay Chatterjee CMD of KIOCL said that "As the largest state owned pellet manufacturer in the
country, we strongly oppose any move to impose export duty on pellets. The claim made by Assocham that
export duty would improve availability of pellets within the country is baseless and incorrect."
Mr Chatterjee said countering Assocham claims said that "Very little pellet export has taken place
subsequent to levy of Distance Based Charge by railways on iron ore transported through railway network
meant for manufacture and export of pellets. This levy has rendered pellets produced in India totally
unviable in the international market."
Last week, Assocham wrote to Finance Minister Mr P Chidambarm alleging that domestic iron ore
producers were taking advantage of zero export duty on the key steel making raw material and
circumventing exports through pellets as there was hardly any value addition in conversion of iron ore fines
to pellets.
While both fines and lumps varieties of iron ore currently attract 30% export duty, there is nil duty on pellet
exports.

India had exported 2.1 lakh tonne of pellets during 2011-12 and did not make any exports during 2012-13.
In fact, India imported pellets as the price of imported pellets were more attractive. India imported 8 lakh
tonne of pellets during 2011-12 and 14.7 lakh tonne during 2012-13.
Source Economic Times (www.steelguru.com)
India steel output in November at 14 month low
Business Standard reported that Indias steel production fell to 14 month low in November at 6.25 million
tonne due to subdued demand from sectors such as white goods and automobiles.
It is the lowest monthly production since September last year, when it was 6.299 million tonne. As per the
World Steel Association the previous low was in October at 6.461 million tonne.
Steel production started declining since August when the country produced 6.578 million tonne compared
to 6.668 million tonne in the previous month. It further fell to 6.540 million tonne in September.
India had produced 6.766 million tonne steel in January, 6.414 million tonne in February and 6.836 million
tonne in March, so far the best month in terms of production during the current year. In April, Indias steel
production was at 6.512 million tonne, 6.785 million tonne in May, 6.528 in June and 6.668 million tonne
in July.
The cumulative production during the 11 month period of the year stood at 72.338 million tonne a growth
of 1.9% over the corresponding period last year.
Source Business Standard - (www.steelguru.com)
Business Standard reported that the rising prices of iron ore, the key raw material to make steel, is adding to
the misery of steel industry, which is already facing acute shortage of iron ore in Karnataka. The steel
industry margins have come under pressure owing to the high cost of iron ore.
The landed cost of iron ore purchased at Karnataka e auctions have gone up an average 54% to INR 5,700
per tonne for 61 to 62% Fe grade compared to INR 3,700 per tonne a year ago. Similarly, the prices of 63%
Fe grade iron ore are currently sold at a base price of INR 3,800 to 4,000 per tonne. In addition to base
price, the buyers will have to pay 22% taxes in the form of royalty and forest development tax and
transportation cost to their steel mills.
Mr Seshagiri Rao joint MD of JSW Steel said that Compared to Karnataka, the prices of similar grade iron
ore is available at INR 1,800 to 2,000 per tonne in Odisha, where there is no forest development tax and the
royalty is paid by miners. Earlier, miners in Karnataka paid the royalty and FDT too. But, now it is
transferred to steel mills, which is adding to our cost of operation.
The NMDC is charging INR 2,610 to 2,800 per tonne for their 62.5 to 63% Fe grade iron ore in
Chhattisgarh.
He said that The miners are charging around 40% premium on the base price for their ore sold in the eauctions. As it is we are facing severe shortage of iron ore in Karnataka and over that the miners are
charging hefty premium for their ore. Unless the market forces come into operation, it is very difficult to
procure iron ore in Karnataka.
Mr R K Goyal MD of Kalyani Steel said that they are forced to operate at little over 50% of the capacity
due to shortage of iron ore. He said that The situation of steel companies is terribly bad in Karnataka as
they are faced with multiple problems like lack of iron ore and high prices at e-auctions. The landed cost of
iron ore purchased at e-auctions works out at INR 5,700 per tonne as against INR 4000 a year ago. We are
operating at lower capacity to manage the situation. - Source Business Standard

India: 4 Major Reasons for recent Price rally in secondary Steel

Secondary steel makers see a price rally as demand witnessed across the value chain.
1) High Iron ore prices (in Odisha and Karnataka) resulted in Sponge prices increase: Odisha prices are up
by INR 200-300/MT. NMDC Karnataka price up by INR 400/MT. These has inflated the cost of Steel
production in the region for approximately INR 500/MT
2) Low availability of Scrap (Imported and Domestic): India imports are down by 30%. Imported Scrap
offers remained high at USD 355-365/MT CNF Mumbai (INR 22,500/MT) whereas domestic prices stand
at around INR 23,800/MT
3) Low production of MS Ingot/Billet: Production was at 40-50% level owing to low conversion especially
in North and West India.
4) Pan India Re-bar buying improved.
Market Comment:
Raipur: Re-bar sales were excellent yesterday; on an average every Re-bar manufacturer sold about 400600 MT, said well know trader based in the region. This translated to high MS Ingot and Billet prices
which were increased by INR 300-500/MT.
Durgapur: High input cost and low inventory triggered the demand, said Rebar manufacturer based in
Durgapur.
Maharashtra: Buying on an average is good and there is no scope for any correction, said Re-bar trader
based in Mumbai
Gujarat: There is a shortage of melting Scrap owing to low arrival of ships for breaking and seasonal
demand is the main reason for the price hike, commented a Broker based in Gujarat.
Source : www.steelmint.com
India: Sponge Iron in Bengal improve by 4%
Sponge Iron prices in Durgapur (West Bengal) improved by almost INR 800/MT in a Weeks time
Domestic prices for Sponge is showing an uptrend, with prices rising by INR 100-200/MT daily. In
Durgapur higher offers from Pellet manufacturers forced Sponge pellet manufacturers to increase their
offers by INR 800/MT on a W-o-W basis. Present offer for Sponge pellet is at INR 19,000/MT and for
sponge iron is INR 20,000/MT. Whereas, basic price for MS Scrap (Heavy Melting) in Durgapur remained
stable at INR 24,200/MT.
In South India as well, high Iron ore bids by JSW has increased the domestic prices by INR 400-500/MT.
Sponge Pellet offer at around INR 18,500-18,800/MT.
Raipur (Central India): In contrary to East and South Market, prices in Raipur are under pressure owing
to oversupply as compare to limited MS Ingot/Billet production. Current offers for Sponge Iron at around
INR 20,100-20,200/MT FeM 80 in advance payment. Similarly, Sponge Pellet offers at around INR
18,900-19,000/MT.

This sentiment may reverse any time. SteelMint learned that good conversion from Sponge Iron to MS
Ingot (INR 8,500/MT) and improved availability of Sponge Iron in the region can trigger the Ingot/Billet
production.
Source : www.steelmint.com
India: VAT on Iron, steel items reduced in Punjab
To provide some relief to secondary steel makers, Punjab government today announced to slash VAT
rate from 4.95 per cent current to 2.5 per cent on iron and steel items.
Punjab Deputy Chief Minister Sukhbir Singh Badal gave nod in this regard after holding a meeting with the
delegation of furnace, iron and steel rolling mills here today. The new proposed VAT regime on iron and
steel industry is aimed to enable it to compete with neighboring states and increase in revenue, an official
release said.
As per decisions taken, the rate of VAT on scrap (melting and rolling), ingots/billets/blooms or other semi
finished goods and finished goods, inter-state sales would be reduced to 2.5 per cent from 4.95 per cent
with surcharge of 10 per cent. To prevent a practice of bogus input tax credit claim, it was decided to
restrict the claim to maximum two stages.
Introducing restructured VAT regime for this sector, the state government has also decided to calculate
VAT on the basis of energy consumption by unit. After the implementation of new system, there should
be a minimum commitment of production of 1 tonne of finished items with 250 units of consumption of
electricity, whereas for furnace units, a minimum commitment of 1 tonne of ingot production with 750
units of electricity has been made, an official said.
This new system (of calculating VAT) will eliminate tax evasion and also lead to increase in production
by encouraging flow of scrap and raw material into the state, release said. - Source : www.steelmint.com
Indian Secondary Steel Manufacturers switch to Sponge over Scrap
Shortage of Melting Scrap has forced induction furnaces based in Maharastra to use more of Sponge
Iron and Pig Iron
Maharashtra furnaces, which majorly consume melting scrap for steel making, has switched to sponge iron
over lower imports owing to lower imports.
Industry participants highlight that, over couple of months, it is noticed that Sponge Iron consumption has
increased. SteelMint learned 60-70% of Sponge Iron and Sponge Pellet is melt along with the 30% mix of
Cast Iron, Pig Iron and Scrap to make 1 MT MS Ingot. Earlier it was the other way round.
Some of the manufacturers in Wada (Mumbai) have mentioned that, they have increased their purchases of
sponge iron from Raipur and Bellary. However due to lower freight cost, Bellary, is preferred over Raipur
sponge iron. They also added current mix to make steel is 30% scrap and rest sponge and pig iron.
Earlier it was reported that, imports of scrap to India have been consistently down since Rupee has crossed
over 60 per USD. India which imported around 7 million tonnes of melting ferrous scrap in 2012-2013 is
expected to import 5 million tonnes in 2013-2014.