Iron and Steel : Strengthening India - 2 of 20 11th Issue Steel Re Rolling Mills Association of...

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Transcript of Iron and Steel : Strengthening India - 2 of 20 11th Issue Steel Re Rolling Mills Association of...

  • Page 1 of 20 11th

    Issue Steel Re Rolling Mills Association of India visit www.srma.co.in

    SRMA STEEL NEWS

    SRMA

    Steel Re Rolling Mills

    Association of India www.sram.co.in

    Steel Re-Rolling Mills Association of India www.srma.co.in

    Sl. No, Name

    1. Shri B.M. Beriwala,

    Chairman

    2. Shri Jagmel Singh Matharoo,

    Vice Chairman

    3. Shri Ramesh Kumar Jain,

    Treasurer

    4. Shri Sanjay Jain

    5. Shri Kailasj Goel

    6. Shri G P Agarwal

    7. Shri S K Sharda

    8. Shri Sandip Kumar Agarwal

    9. Shri S. S. Sanganeria

    10. Shri Sanjay Surekha

    11. Shri R P Agarwal

    12. Shri S. S. Bagaria

    13. Shri Girish Agarwal

    14. Shri Goutam Khanna

    15. Shri Suresh Bansal

    16. Shri Rajiv Jajodia

    17. Shri Bhusan Agarwal

    18. Shri Mahesh Agarwal

    19. Shri Sita Ram Gupta

    20. Shri Ashok Bardeja

  • Page 2 of 20 11th

    Issue Steel Re Rolling Mills Association of India visit www.srma.co.in

    SRMA STEEL NEWS

    SRMA

    Steel Re Rolling Mills

    Association of India www.sram.co.in

    Executive Summary Concept Of Direct Rolling In Steel Re-Rolling Policy taken by Ministry of Steel to increase the demand of Steel Environment and Safety Labour & Legal News Taxation News Government launches Rs. 500 Crore India Inclusive Innovation Fund to

    connect the financial gap of MSME sector

    Event & Latest Steel News

    CONTENTS

  • Page 3 of 20 11th

    Issue Steel Re Rolling Mills Association of India visit www.srma.co.in

    SRMA STEEL NEWS

    SRMA

    Steel Re Rolling Mills

    Association of India www.sram.co.in

    Demand continued to remain silent during April-June 2013; exports obtain momentum on the back of increased

    production by main steel producers: Sluggishness in key end-user industries continued during the period April-June

    2013, leading to the domestic steel consumption growing 0.2% over the corresponding period of the previous fiscal

    year. India's steel demand are expected to go up by 3 to 5% in the next financial year on higher economic growth

    although margin pressure would continue due to high production costs and limited scope to pass them on to

    customers. Better GDP growth of 5.6% in FY'15 on the back of a revival in industry growth would lead to better

    steel demand growth next fiscal. It would be in the range of 3 to 5% but not above 5%. No major hike in prices

    next fiscal due to overcapacity in the domestic steel industry which will continue to limit prices amid the demand

    increase.

    Indias current installed steel capacity is around 95 million tonne and 13-15 million tonne is expected to be added

    within FY 2015. It may be noted that margins of steel producers would continue to be under pressure, given the

    high cost of production and their limited ability to pass on hikes in costs. The availability of iron ore should

    improve, limiting hike in costs. Coking coal prices will also range between USD 160 to 175 a tonne. Steel imports

    have slid into a negative territory in the period April-June 2013 (-34.1%), continuing with the trend witnessed in the

    second half of the previous year. Overall growth in steel imports in FY13 stood at 14.6%, sharply down from a

    growth rate of around 38% posted in the first five months of FY13, implying a moderation during the second half

    due to a reduced differential between domestic and imported steel prices.

    According to World Steel Association, the leading global industry body, the rate of growth in demand for the last

    calendar year was just 2.5 per cent. The 3.3 per cent growth in consumption was the slowest in last three years,

    according to figures revealed by Joint Plant Committee, a body under the Steel Ministry. It grew by 5.5 per cent in

    2011-12 and 9.9 per cent in 2010-11. World Steel Association, the leading industry body, has forecast that India's

    steel demand will grow by 5.9 per cent to 75.8 million tonnes in 2013. "In India, steel demand is expected to pick up

    and will grow by 5.9 percent to 75.8 million tonnes in 2013 following 2.5 percent growth in 2012 as monetary

    easing is expected to support investment activities,".

    The Indian Economy is sandwiched between global economic woes and laggard policy framework in the country.

    From an average 8-9 per cent in the recent past, domestic GDP growth has slipped to 5-6 in the past couple of

    years. Accordingly, with the slow-down across steel end-use industries, especially industrial and infrastructure

    construction, steel demand growth has plunged from around 9 per cent for the last 10 years to a mere 4-5 per cent

    for the last couple of years. With further weakness in the GDP outlook at 4.8 per cent, steel demand is expected to

    post an even lower growth rate of 2-4 per cent in 2013-14. The slide in demand is largely contributed by execution

    delays in construction projects and lower demand for automobiles and consumer durables.

    The decline in import also represents a weak demand and a higher base effect. On the other hand, steel exports have

    risen by 12.7% % in the period April-June 2013. This was largely necessitated by an inventory build-up by major

    steel producers, who reported a higher production growth relative to the growth in demand. A depreciating rupee

    and export incentives have also aided steel exports, despite the declining trend in international steel prices in the

    above period. With a capacity of about 15 million tonnes (mt), which is equal to almost 16% of the current domestic

    capacity, being estimated to come up in FY14 as per the Working Group of Ministry of Steel.

    Global growth projections are inspiring now as the World Bank is projecting encouraging growth of the global

    economy. The Global GDP growth is expected to increase from 2.4% in 2013 to 3.2% in 2014, stabilizing at 3.4%

    in 2015 and 3.5% in 2016. For high income countries the economic growth is expected to increase from 1.3% in

    2013 to 2.2% in 2014, stabilizing at 2.4% for 20 15 and 2016. Growth in developing economies is expected to rise

    above 5% in 2014 while India is expected to grow at 6.2% during 2014-15. Recently, our Honble Prime Minister

    has also said that the economy will end this year (2013-14) at the same level as last year with 5% growth.

  • Page 4 of 20 11th

    Issue Steel Re Rolling Mills Association of India visit www.srma.co.in

    SRMA STEEL NEWS

    SRMA

    Steel Re Rolling Mills

    Association of India www.sram.co.in

    The Induction Furnaces melt Scrap and Sponge Iron and produce Ingot through

    Ingot Molding and some have the continuous Billet Casters also. The cast Ingots or

    Billets are cooled and sent for rolling in the Rolling Mill. The cooled ingots or

    Billets are then reheated by placing them into Billet Reheating Furnace which

    operates on fossil fuel like: furnace oil or coal; after the Billet or Ingot is heated

    up to 1200 degree Celsius, then these are discharged and taken for rolling. This

    process consumes a lot of fuel in reheating furnace and causes burning loss of

    around 1.5 -3.5% depending on the type of fuel used. heating of billet/ingot is not

    very uniform. The production in Rolling Mill also gets affected many times due to

    limitation of the manpower handling and Billet Reheating system because in top fired pusher furnace, heating is only from the

    top surface of the material. However, the re-rolling sector has been operating quite well under the above limitations. It is also

    important to note that burning of fossil fuel causes generation of CO2 and a large quantity of the same is exhausted through

    Chimney in addition to other pollutants causing several environmental problems and Global Warming. It is well known that

    Technology Development is a dynamic phenomena and in this case the constant search by Indian Entrepreneur has given birth to

    a Revolutionary Technology of Direct Rolling in a SRRM sector. Although, the Technology is in practice in a few steel mills

    abroad but they are the most modern mega steel plants. In a SME sector, this is indeed a great achievement in the world.

    ADVANTAGES OF DIRECT ROLLING PRACTICES

    Depending upon the facilities such as capacity, number of induction furnace (IF), mill equipment etc., it would be

    possible to achieve 75-80% direct rolling. Thus, huge saving of furnace oil and coal required for heating of the

    billet/ingot which will result into enormous saving in Fuel energy and thereby reduce the Green House Gas (GHG)

    emission.

    Reduction in the scale loss to the extent of 1.5 to 3.5%, which would have been burned in the billet reheating furnace.

    Savings due to avoidance of runners risers etc., improving the yield about 4-5%.

    Savings in the cost of Ingot moulds, refractory, etc.

    It will improve the productivity of the mill and also that of the manpower engaged in the Plant.

    It would also result in some saving in power consumption because of the indirect savings of Burning loss and improved

    liquid metal to finished steel etc.

    It will also help in reducing the manpower required in any unit and also reduce the risks of lower production caused

    due to the manpower engaged in vital function of mould settings; ingots finishing and loading in the billet reheating

    furnace etc.

    It will reduce