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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 Email : [email protected]

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 O P Agarwal

8. Shri S K Sharda

9. Shri Sandip Kumar Agarwal

10. Shri S. S. Sanganeria

11. Shri Sanjay Surekha

12. Shri R P Agarwal

13. Shri S. S. Bagaria

14. Shri Girish Agarwal

15. Shri Goutam Khanna

16. Shri Suresh Bansal

17. Shri Rajiv Jajodia

18. Shri Bhusan Agarwal

19. Shri Mahesh Agarwal

20. Shri Sita Ram Gupta

21. Shri Ashok Bardeja

http://www.srma.co.in/

mailto:[email protected]

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Executive Summary

Sustainability of Steel Industries

Environment & Safety Focus : Ensure Environment Sustainability

Labour & Legal News

Taxation News

Event & Latest Steel News

CONTENTS

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The Indian steel sector to be completely freed from the licensing regime and pricing and distribution controls. This

sector was first core sector and done primarily because of the inherent strengths and capabilities demonstrated by

the Indian iron and steel industry. Subsequent liberalization and the economic reforms of the iron and steel sector

which started in the early 1990s resulted in substantial growth in the steel industry and green field steel plants were

set up in the private sector.

India categorized as the fourth largest producer of crude steel in the world after China, Japan and the USA during

2011 and is also expected to maintain this position, based on January-November, 2012 data as released by the

World Steel Association. India was also the third largest consumer of finished steel in the world, after China and

USA in 2011 and is expected to maintain the rank based on the consumption figures for 2012 projected by the

World Steel Association.

Since 2003, India has also been the largest sponge iron producer in the world. The domestic steel industry

represents over Rs. 90,000 crore of capital (and expanding further) and directly provides employment to over 5 lakh

people. The production for sale of total finished steel (alloy - Non-alloy) during April-December 2012 (prov.) was

56.57 million tonnes, up by 3.3% over same period of last year (source: JPC Flash Report, December 2012).

The important policy measures which have been taken over the years for the growth and development of the Indian

iron and steel sector are as under:-

Pricing and distribution of steel were deregulated from January, 1992. At the same time, it was ensured that priority

continued to be accorded for meeting the requirements of small-scale industries, exporters of engineering goods and

North Eastern region, besides strategic sectors such as Defense and Railways.

The import regime for iron and steel has undergone major liberalization moving gradually from a controlled import

by way of import licensing, foreign exchange release, canalization and high import tariffs to total freeing of iron

and steel imports from licensing, canalization and lowering of import duty levels. Export of iron and steel items has

also been freely allowed.

Currently, the import custom duty on all steel items is 2.5 per cent and Excise Duty(CENVAT) of 10% on all steel

items. However, Government has imposed export duty of 30 per cent on all forms of iron ore (except pellets, on

which there is no duty) in order to conserve the mineral for long term requirement of the domestic steel industry.

The National Steel Policy 2005 is being updated to provide a roadmap for Indian Steel Industry’s long term growth

prospects in view of fast-changing nature of operations, structure and dynamics.

Earlier, the Government had notified 16 steel products under the “Steel & Steel Products (Quality Control) Order”

issued under the Bureau of Indian Standard Act 1986. Further, in September 2012, the Government has issued the

amended Steel & Steel Products (Quality Control) Second Order, according to which no manufacturer can

manufacture, import, store for sale or distribute steel and steel products which do not conform to the standards and

which do not bear the standard mark (BIS or ISI Mark).

In order to obtain a full picture of the pattern of rural steel consumption in the country, an all India survey was

commissioned by the Ministry of Steel. The survey work was coordinated by Joint Plant Committee, Kolkata and

the field work was carried out by IMRB International, a leading market research organization. The study report was

examined by a high-level Committee appointed by the Ministry of Steel for devising roadmap for implementation

of the recommendations of the study, which have submitted its report to Ministry of Steel.

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Sustainability, or sustainable development, is aimed at improving the quality of life for everyone, now and for

generations to come. It encompasses environmental, economic and social dimensions, as well as the concept of

stewardship, the responsible management of resource use.

Steel products help to meet society’s needs and as producers of steel, it is our responsibility to meet the demand for

steel in a sustainable way. With companies all across the world, we face a broad range of challenges and we are

committed to taking action, individually and together as an industry, to address them.

In this section of our website, we provide readers with an overview of the actions we are taking to address global

challenges on many different fronts. We also continue to report on our sustainability indicator performance and

progress in fulfilling the commitments outlined in our sustainable development policy.

There are thousands of different types of steels. They have evolved to support housing, food supply, transport and

energy-delivery solutions. The main categories of steel uses are pictured below. Almost everything that we use is

either made from, or manufactured with, steel. It is a uniquely versatile material.

STEEL USES

WHAT MAKES STEEL SO UNIQUE?

Steel’s combination of properties such as availability,

cost, durability, strength, and ductility (the ability to

be stretched or shaped without breaking) is what

makes it unique. Steel’s properties enable it to suit a

variety of product applications for which there are no

energy and cost-effective substitutes.

Moreover, steel is 100% recyclable. It can be

recycled infinitely, which helps to save energy and

raw materials, reduce CO2 emissions and reduce the

waste generated from raw materials extraction.

Virtually, all the steel we use has the potential to be recycled. Improving the recycling rate of end-of-life steel

products as well as product design for recycling can increase further steel scrap quality, and hence steel’s

contribution to the environment.

STEEL'S CONTRIBUTION TO THE ENVIRONMENT, SOCIETY AND THE ECONOMY

The World Steel Association (worldsteel) promotes the adoption of industry best practices and technology transfer

across the globe as well as the development of new knowledge, through research, to tackle the most pressing issues

facing society such as climate change (see Fact sheets Technology transfer and Breakthrough technologies).

Technological development has enabled significant improvements in energy efficiency in steelmaking. During the

past 30 years, the amount of energy required to produce one tonne of steel has been reduced by 50%. Water uptake

http://www.indiacsr.in/en/wp-content/uploads/2011/12/CSR-confernece-in-India-by-indiacsr.png

http://www.indiacsr.in/en/wp-content/uploads/2011/12/CSR-confernece-in-India-by-indiacsr.png

http://www.worldsteel.org/publications/fact-sheets.html

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and discharge are close to each other, with a small loss due to evaporation. Water recycled back into rivers and other

sources is often cleaner than when extracted.

Product design and consumer behavior affect the overall environmental performance and efficiency of products. To

understand the environmental performance of a product, its entire life cycle needs to be taken into consideration.

The steel industry pays special attention to the contribution of steel over the life cycle of products, especially in the

use phase. For example, it provides lighter, safer, long-lasting and more intelligent structures for transport and

construction (see Sustainable Steel – at the core of a green economy).

The benefits of new and promising products made of, or with, steel are possible through investments in research and

development and state-of-the-art technologies. The FutureSteelVehicle (FSV) programme, which is focused on steel

product design, developed an automobile steel body structure that reduces mass by more than 35% and the total life

cycle emissions of the vehicle by nearly 70%. (see Steel Solutions in the Green Ecomomy: FutureSteelVehicle)

Steel is inextricably linked with economic growth and prosperity. There are numerous ways in which steel

contributes to economies and society worldwide. A healthy and profitable steel industry generates added value

through investments in advanced technologies, capital expenditure and the creation of new knowledge.

Steel contributes to society through the creation and distribution of economic value in the form of community

investments, taxes and royalties paid, shareholders dividends and employee wages and benefits. Steel also

contributes to the creation of employment. The steel industry employs more than 2 million people directly around

the world, with a further 2 million contractors and 4 million in supporting industries. Considering steel’s position as

the key product supplier to industries such as automotive, construction, transport, power and machine goods, the

steel industry is at the source of employment for many more millions of people.

Sustainable development policy - Worldsteel member companies are committed to a vision where steel is valued

as a major foundation of a sustainable world. This is achieved by a financially-sound industry that takes leadership

in environmental, social and economic sustainability.

Sustainability - indicators - Consult the table of eight sustainability indicators used to track industry performance

and the methodology used to calculate them.

Environmental sustainability - Efficient use of raw materials, re-use and recycling are high on the public agenda.

For the steel industry, water management, the impact of steel during the entire life cycle of products, and the use of

by-products are related important focus areas.

Social sustainability - Read more about the industry's approach to safety and health, employment, training and

investing in communities.

Economic sustainability - Over time, the steel industry's focus has shifted from growth in the volume of steel in use

to the added value of the product over its life cycle.

Company case studies - These member company case studies highlight actions taken by worldsteel member

companies to address sustainable challenges.

Members sustainability reports - Links to worldsteel member companies' sustainability and corporate

responsibility reports.

Stakeholder survey - For a better understanding of stakeholders’ perceptions of sustainability issues related to steel

and the steel industry. [ Source : WSA ]

https://www.worldsteel.org/publications/bookshop/product-details.~Sustainable-steel--At-the-core-of-a-green-economy~PRODUCT~sustainability2012~.html

https://www.worldsteel.org/publications/bookshop/product-details.~Steel-Solutions-in-the-Green-Economy--FutureSteelVehicle~PRODUCT~SteelSolutions2~.html

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Where we are? India has made some progress towards the Seventh Millennium Development Goal of ensuring environmental

sustainability. Forest cover has increased to 21.02 percent and protected areas cover to about 4.83 percent of the

country’s total land area. Reducing the energy intensity of GDP growth through higher energy efficiency will be the

key to achieving energy security.

India is on-track in achieving the MDG target for sustainable access to safe drinking water. The overall proportion

of households having access to improved water sources increased from 68.2 percent in 1992-93 to 84.4 percent in

2007-08.

However India, which is one of the most densely populated countries in the world, has not recorded similar progress

in improving sanitation facilities over the last decade. The proportion of households without toilet facilities declined

from 70 percent in 1992-93 to about 51 percent in 2007-08. At current progress, the country is unlikely to achieve

the target of reducing the proportion of households having no access to sanitation to 38 percent by 2015. The rural

urban gap in access and use of sanitation facility continues to be very high. Sixty-six percent of rural households do

not have toilet facilities as against 19 percent of urban households in 2007-08.

The Eleventh Five-Year Plan (2007-12) has set several targets to further India’s progress in achieving MDG VII.

These include:

Increase forest and tree cover by 5 percentage points

Attain WHO standards of air quality in all major cities by 2011–12

Treat all urban waste water by 2011–12 to clean river waters

Clean drinking water to be available for all by 2009, ensuring that there are no slip-backs by the end of the

Eleventh Plan

Increase energy efficiency by 20 percent by 2016–17

Ensure electricity connection to all villages and Below Poverty Line households by 2009 and reliable

power by the end of the Plan

Ensure all-weather road connections to all habitations with population of 1000 and above (500 and above in

hilly and tribal areas) by 2009, and all significant habitations by 2015

Connect every village by telephone and provide broadband connectivity to all villages by 2012

Provide homestead sites to all by 2012 and step up the pace of house construction for rural poor to cover all

the poor by 2016–17

Several government schemes also focus on this Goal. They include:

National Biodiversity Action Plan (NBAP)

Total Sanitation Campaign

Accelerated Rural Water Supply Programme (ARWSP), a component of the Bharat Nirman Programme

and Nirmal Gram Puraskar

Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

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Legal News

Foreign Direct Investment (FDI ) Policy (Circular 1 of 2014) dated 17th April,2014

The Consolidated FDI Policy (Circular 1 of 2014) was released by the Department of Industrial Policy and

Promotion (DIPP), Ministry of Commerce and Industry, Government of India on 17th April 2014 , setting

out the consolidated foreign direct investment (FDI) policy of India which comes into force with immediate

effect. The New Policy supersedes the Consolidated FDI Policy (Circular 1 of 2013)issued by the DIPP on

6th April 2013.

The New Policy primarily serves to (i) consolidate various press releases issued by the DIPP in the

intervening period between the Old Policy and the New Policy; and (ii) provide clarifications to align the

New Policy with existing laws and regulations.

Unfortunately, there are some gaps in the consolidation process such as non-inclusion of FDI norms in

Limited Liability Partnerships (notified on 13th March 2014), continued references to the Companies Act,

1956 throughout the New Policy despite substantial provisions of the Companies Act, 2013 coming into

effect from 1st April 2014 and continued reference to ‘venture capital funds’ instead of ‘Alternate

Investment Funds’.

Source : http://corporatelawreporter.com/

General Circular No. 4/2014.Clarification with regard to section 180 of the

Companies Act, 2013

Government of India Ministry of Corporate Affairs 5th Floor,' A' Wing, Shastri Bhawan, Dr. R.P. Road, New Delhi-

110001. Dated: 25/3/2014

To All Regional Directors, All Registrar of companies, All Stakeholders. Subject: Clarification with regard to

Section 180 of the Companies Act, 2013. Sir, This Ministry has received many representations regarding various

difficulties arising out of implementation of section 180 of the Companies Act, 2013 with reference to borrowings

and/or creation of security, based on the basis of ordinary resolution. The matter has been examined in the Ministry

and it is hereby clarified that the resolution passed under section 293 of the Companies Act, 1956 prior to

12.09.2013 with reference to borrowings (subject to the limits prescribed) and / or creation of security on assets of

the company will be regarded as sufficient compliance of the requirements of section 180 of the Companies Act,

2013 for a period of one year from the date of notification of section 180 of the Act.

Yours faithfully,

(K.M.S.Narayanan) Assistant Director (Policy) Phone No. 23387263

Source : http://corporatelawreporter.com/

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TAXATION NEWS

Government of West Bengal Directorate of Commercial Taxes

14, Beliaghata Road, Kolkata-700015 Trade Circular No. 7 of 2014 dated 16/04/2014

Sub: Electronic Enrolment of Transporters in West Bengal under WBVAT Act, 2003 According to section 25 of the West Bengal Value Added Tax Act, 2003, every transporter, carrier or transporting agent, including those who are already in possession of a certificate of enrolment, operating his transporting business in West Bengal, shall mandatorily apply and obtain from Commissioner, a Certificate of Enrolment or a fresh Certificate of Enrolment, in Form 11, as the case may be. According to rule 17 of the West Bengal Value Added Tax Rules, 2005, the transporter, carrier or transporting agent shall apply in Form 10 for enrolment electronically. A web-link for such application has been provided under the link ‘e-Enrolment of Transporters’ under ‘e-Services’ in Directorate’s website www.wbcomtax.gov.in. Through this link, any eligible transporter, carrier or transporting agent can (a) apply for electronic enrolment, (b) reprint the acknowledgement slip against successful submission of application, (c) view the status of any submitted application, (d) generate user id & password necessary for downloading Certificate of Enrolment and (e) download & print the Certificate of Enrolment in Form 11. A user manual has also been provided alongside for ready reference. Brief process of the enrolment is as under:-

1. Applicant shall make electronic application in Form 10 through the given link and submit the application by first selecting the appropriate Charge Office under whose jurisdiction the place of business falls and then filling up some vital information regarding the transport business including valid PAN. 2. On successful submission of the application, a system-generated Acknowledgement Slip will be displayed which will contain the address of the selected Charge. 3. The print copy of the Acknowledgement Slip should be submitted along with necessary documents as instructed thereon at the respective Charge along with payment document of enrolment fee of Rs.100/-, paid through challan under VAT Act. 4. The Acknowledgement Slip Number shall have to be received electronically at the Charge Office through an internal application in IMPACT. 5. The disposing Officer shall then dispose the application, both in file as well as electronically, after necessary scrutiny and verification of the related documents, by way of accepting or rejecting it. He/she may also adjourn the disposal for specific reasons. 6. When the application is accepted, it will be automatically communicated to the applicant via e-mail and/or sms. When the application is rejected/ adjourned, similar communication will be made giving reasons for such action. 7. Once the applicant is confirmed that the application is accepted, he shall generate user id & password and then shall sign in to download the Certificate of Enrolment in Form 11 electronically and get it printed. By introduction of such process, the existing manual process is henceforth done away with. Already enrolled transporters, carriers, transporting agents who are in possession of manual Certificate in Form 11, shall have to apply afresh for New Enrolment Number electronically. The changes shall take effect immediately.

sd/- (Binod Kumar)

Commissioner, Commercial Taxes West Bengal

Memo. No. 306 /CT/PRO Date: 16.04.2014 3C/PRO/2012 Copy forwarded to Addl. CCT/ ISD for information and for uploading it in the official website of the Directorate for information of all concerned.

Sd/-

K.C.Chowdhury

Addl.CCT/WB

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Recent Important Judgement and Oreders Supreme Court and High Court

Levy of fee u/s 243E of the Income-tax Act, 1961 of the Income-tax Act , 1961 The Finance Act, 2012 had w.e.f. 1/7/2012 inserted Chapter XVII-G to introduce Section 234E in the statute book as per which a fee of Rs. 200/- was sought to be levied in those cases where a person failed to deliver a statement within the time prescribed u/s 200(3) (Statement of deduction of tax at source) or the proviso to Section 2006C(3) [Statement of collection of tax at source] of the Income-tax Act, 1961. From the provision as it stands, there is no remedy prescribed for getting relief in those cases where there are genuine reasons for such delay or failure. This provision of late has been subject matter of debate.

a) Now recently, the Karnataka High Court vide order dated 19th February, 2014 in the case

of Adithya Bizorp Solutions India Pvt. Ltd. & Ors Vs Union of India has stayed the notices issued u/s 234E of the Act.

b) Earlier on 18th

December, 2013 Kerala High Court also in the case of Narath Mapila LP School Vs Union of India & Ors stayed the proceedings in relation to levy of late fee u/s 234E of the Income-tax Act, 1961.

The question of levy of late fee at the rate of Rs. 200/- per day appears to very steep and a cap on the fee through now pegged at the amount of tax deductible or collectible appears to be on the higher side. It is hoped that the above orders would culminate in a judgment giving relief to the assesses.

Taxability of Interest on refunds received u/s 244A of the Income-tax Act, 1961 In an important judgment dated 19

th December, 2013 in he case of M. Jaffer Saheb(Decd) Vs CIT, the Andhra

Pradesh High Court relying on the decision of the Apex Court in the case of E.D. Sassoon Company Limited Vs

CIT(1954) 26 ITR 27 (SC) held that interest on refund which is received by an assessee has to be taxed in the

respective year to which the refund belongs as the right to refund becomes established in that year itself and it is

only the quantification that is postponed or that gets determined upon passing of final order. The High Court in this

case also relied upon the decision of the Apex Court Court in the case of Ramabai Vs CIT(1990) 181 ITR 401(SC).

The High Court in this case noticed that a close scrutiny of Section 237 to 240 of the Act would reveal that the

statutory right is conferred on the assessee to get the refund of the excess tax paid and such refund shall be made to

the assesseee even without his having to make any claim in that behalf

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Indian Pellet & DRI Summit 2014 Policy <> Price <> Trade <> Technology <> Networking

Organiser : SteelMint Events

Venue : ITC Sonar, Kolkata

Date : Friday 27t h

June,2014

Website : http://events.steelmintgroup.com/index.php

Minerals, Metals, Metallurgy & Materials (MMMM) 2014

4-7, September 2014

Pragati Maidan

New Delhi

For Booking & Enquiries

International Trade and Exhibitions India Pvt. Ltd.

1106-1107, Kailash Building, 26 K.G. Marg, New Delhi- 110001, India

Tel: +91 11 40828282

Gagan Sahni: +919810036183

Varun Sharma:+91 11 40828208

Smita Roy: +91 11 40828217

Sandeep Arora: +91 11 40828227

Metal + Metallurgy China 2014 Organiser: China Iron and Steel Association China Foundry

Association Chinese Mechanical Engineering Society Me

Venue: China International Exhibition Center, Beijing.

Web Site: www.mm-china.com

----------------------------------------------------------------------------------------------------------------------------- ---------------

Metal & Steel Middle East 2014

Organiser: Arabian German Exhibitions Ltd.

Venue: Cairo International Convention and Exhibition Centre, Cairo, Egypt

Website:www.metalsteeleg.com

Link:http://www.metalsteeleg.com/Registratio

http://events.steelmintgroup.com/index.php

http://www.mm-china.com/

http://www.metalsteeleg.com/

http://www.metalsteeleg.com/Registration.php

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STEEL NEWS

India begins probe into stainless steel dumping by China, Korea

NEW DELHI : India has initiated an investigation into alleged dumping of a certain variety of stainless steel by

China, Korea and Malaysia following complaint by Jindal Stainless Ltd.

The commerce Ministry’s designated authority, the Directorate General of Anti-Dumping and Allied Duties

(DGAD), has began a probe into alleged dumping of “certain Hot-Rolled Flat Products of Stainless Steel 304

series”. In a notification, the DGAD has said the applicant has provided sufficient evidence that the normal

value of the product in these countries in significantly higher than the net export price. The evidence have prima

facie indicated that the product is being dumped from China, Republic of Korea and Malaysia, it said.

“The authority finds sufficient prima facie evidence of dumping of subject goods by the countries, injury to the

domestic industry and casual link between the dumping and injury, the authority hereby initiates an

investigation—“ the notification said. In the probe, the directorate would determine the existence, degree and effect

of alleged dumping and will recommend amount of anti-dumping duty, which is levied would be adequate to

remove the injury to domestic industry”

The DGAD is the nodal agency under the Commerce Ministry for such investigations. The period of investigation

is April 2012 – June 2013. However, for the purpose of analyzing injury, the data of previous three years ( 2009-

2012) would also be considered, the notification added. The country’s largest stainless producer Jindal Stainless

Ltd. in its submission has said that the “application has been made by or on behalf of Domestic Industry”. This

particular variety of the steel is used for manufacture of process equipments, re-rolling, reactor vessels, material

handling equipments, railways, pipes and tubes, automotive components, building and construction, industrial

fabrication and power sector. Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary

from product-to-product and from country to county.

Countries initiate anti-dumping probes to check if their domestic industries have been hurt because of a surge in

cheap imports. As a counter measure, they impose duties within the multilateral regime of the WTO. Anti-dumping

measures are taken to ensure fair trade and provide a level playing field to domestic industry. It is not a measure

to restrict imports or cause an unjustified increase in the cost of products. source : PTI

Odisha 50:50 Rule on Iron Ore

Industries urge odisha government to formulate a mechanism by June end

Bhubaneswar Following the High Court’s endorsement of the 50:50 rule, the Odisha based steel units have the

state government to formulate a suitable mechanism for the 50:50 rule by June end. The Odisha High Court on the

first week of April has upheld the order of the state government that mandates reservation of half of the iron ore

produced.

“The Hon’ble court’s order is positive sign for the industry. The court has made it clear that the state has the right

of pre-emption, and state has the statutory preferential right to purchase the mined mineral fair market price at the

time of preemption, but the court has also asked the government to formulate a proper mechanism within three

months of the order i.e. by June 30th

2014 otherwise the order will become invalid. So we have written to the Odisha

steel and mines department to formulate a proper mechanism by June 30 so as the local steel industries that are

reeling under sever raw material crisis for the last several years, would get raw material regularly and fair market

price would be prevailed said Mr. Vishal Agrawal, MD, VISA Steel and chairman, Indian Chamber of Commerce

(ICC) Odisha Chapter.

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He said, it is unfortunate that while the miners are earning super-normal profit for their Iron Ore, the sate based

steel units are starving for raw material. So a suitable mechanism is very much necessary to prevail fair market

price and fire distribution of raw material would be facilitated.

It may be noted that, the Odisha high Court on 2

nd of April has upheld the Odisha Government on reserving 50%

mineral producer by the miners. The court has also ordered the state Government to formulate a proper mechanism

within 3 months. However, the state government is yet to start the process to formulate any mechanism.

Mr. P L Kandoi, President of All Odisha Steel Federation has also admitted that through on month has already

passed since the high court order no meeting has been convened by the sate steel and mines department for

deliberation on formulation of the mechanism.

SteelMint in a small survey with approx 18 finish long manufacturers and traders

assessed that 10% of them say TMT Re-bar market will go up, 20% say market will go

down, while 70% are of the view that market will be range bound.

Most of the market players (70%) believe that TMT market may fluctuate in the range of INR 100-300/MT,

whereas few players (20%) are of the view that market will decline and a few (10%) are expecting hike in

prices.

Project Sales : “ Project sale is dull from the last 2-3 months due to elections; no improvement has been sent yet.

However, co

However, completion of the election may bring new projects which may increase the project sales.”

- TMT manufacturer based in Southern region

“It seems that market may correct by INR 500/MT because of low demand. High prices are not expectable in

projects as wall as retail demand has also reduced.”

- Trader based at Jalna

Retails Sales : Retail sale is decent in the market, although its volume is low from last 2-3 days owing to correction

in raw material prises.

“Demand from nearby states has reduced as in these states local sales volume is low, which is not supporting us.”

We don’t see any major changes in the TMT Re-bar market. Although, market is dull from last 2-3 days, it may not

sustain for long time. Only marginally corrections may be done as neither we have over stock nor over demand.”

- TMT Manufacturer based at Raipur

Today’s TMT Trade: TMT offers slashed by INR 100-300/MT across India except Chennai, where price moved up

by INR 300/MT.

Raw material : MS Ingot & Sponge iron offers declined marginally by INR 100-200/MT from previous trade,

while it increased by INR 200/MT in Chennai owing to power cut in city.

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Indian steel price index on May 2 reflects further gains in long products The Indian Long Product Price Index ILPPI has inclined by 9 points. whereas Indian Flat Product price index IFPPI has declined

by 2 points. The overall Indian Steel Price Index INDSPI has gone up by 3 points.

Class 01/05/14 02/05/14 Change %

ILPPI 9060 9069 9 0.10%

IFPPI 9122 9120 -2 0.00%

INDSPI 9092 9095 3 0.00%

ILPPI – Long Product Price Index

IFPPI – Flat Product Price Index

INDSPI – Indian Steel Price Index

Long Products

Category 01/05/14 02/05/14 Change %

PI - TMT 9148 9169 21 0.20%

PI - WRC 9196 9196 0 0.00%

PI - Angle 8664 8664 0 0.00%

PI - Channel 8724 8724 0 0.00%

PI - Joist 8010 8010 0 0.00%

PI – Product Index

Flat Products

Category 01/05/14 02/05/14 Change %

PI - Narrow Plates 8574 8574 0 0.00%

PI - Wide Plates 8849 8849 0 0.00%

PI - Hot Rolled 8674 8674 0 0.00%

PI - Cold Rolled 9774 9774 0 0.00%

PI - Galvanized 9849 9836 -13 -0.10%

PI – Product Index

These indices have base of 10,000 as on July 1st 2008

To know more about these indices please visit

http://steelprices-india.com/spi_services/spi.html

You can also get ILPPI, IFPPI and INDSPI as SMS alert on mobile by submitting your details at http://steelprices-

india.com/smsalert

To know more details on steel prices subscribe to services of www.steelprices-india.com by registering or send a mail to

[email protected] with contact details Kindly note that this is a paid service.

Source - Steel Price India, Steel Guru - (www.steelguru.com)

http://www.steelguru.com/

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Indian steel consumption in April dips by 13pct MoM to 5.8 million tonnes PTI reported that India's steel consumption grew by 3.4% to 5.8 million tonne in April 2014 over the same month a year ago. It, however, witnessed a sharp 12.9% decline over the preceding month. Joint Plant Committee said that India's consumption of total finished steel saw a growth of 3.4% in April 2014 over April 2013 and decline by 12.9% over March 2014. Production of crude steel grew by 2.7% to 6.8 million tonne during the month. India is the world's fourth largest steel producer. Independent Steel Producers such as SAIL, RINL, TATA Steel, Essar Steel, JSW and JSPL together produced 3.7 million tonnes in April, while the remaining came from minor producers. JPC said that compared to March 2014, overall crude steel production declined by 5.6% in April 2014, led by steep decline of 8.9% in case of ISP producers and 1.3% decline in case of mini and other producers. Imports spurt 14.1% to 0.494 million tonne, while exports saw an increase by 13% to 0.461 million tonne during the month. India consumed 73.9 million tonne of finished steel during the last fiscal, clocking just a 0.6% growth over the previous fiscal, impacted primarily by the slowdown in the domestic economy and a sharp decline in imports. The production of crude steel increased by 3.8% to 81.3 million tonne in 2013 to 2014. Source - PTI (www.steelguru.com)

Steel imports into India remain a cause for concern Business Standard reported that agencies making growth forecasts for a sector leave room for periodic revisions, as any major

development has a bearing on the outlook.

The World Steel Association found growth in India's steel use in 2013 at a disappointing 1.8%. A report by the steel ministry's

joint plant committee paints an even more dismal picture of demand it found Indian steel consumption grew only 0.6% to 73.93

million tonne in the year ended March this year. The JPC says this couldn't have been otherwise, as the base level demand

condition continued to be weak.

The economic slowdown took a toll on the construction sector, which accounts for about 60% of steel demand, as also on the

automobile sector, which contributes 15% share to steel consumption. Industrial production recorded 1.9% contraction in

February, pulled down by a 3.7% decline in manufacturing, which accounts for 75% of the Index of Industrial Production. The

manufacturing sector's output contracted 0.7% between April 2013 and February 2014. This had a significant impact on steel

demand.

In its short range world steel prospects report, WSA said that due to an improved outlook for the construction and manufacturing

sectors and despite lingering high inflation and structural issues, Indian steel demand is expected to grow 3.3% this year. It adds

steel demand will rise 4.5% in 2015, provided the new government carries out structural reforms.

Mr CS Verma chairman of Steel Authority of India Limited said that "Steel demand growth is linked to the performance of the

infrastructure, housing and manufacturing sectors. We are hoping as the new government is installed, it will ensure quick

clearances for infrastructure projects. The target should be to use most of a trillion dollar allocation for infrastructure

development in the 12th Plan. Removal of infrastructure deficit and pushing pending reforms will go a long way in improving the

country's investment climate."

While new capacity keeps on coming on stream, the poor demand has kept margins of steel companies under pressure. WSA says

in March, steel production in India rose 3.9% to 7.25 million tonne, on a YoY basis. No doubt a portion of incremental

production resulted from commissioning new capacity. Steelmakers raised prices INR 1,000 to INR 1,500 a tonne in January,

hoping long term customers would start buying large quantities in the final quarter in order to claim rebates. But once that phase

was over and slackness in demand returned, steel prices were reduced by up to INR 700 a tonne this month.

Source – Business Standard


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(www.steelguru.com)

India starts AD duty probe on stainless steel import from China, Malaysia and Korea PTI reported that India has initiated an investigation into alleged dumping of a certain variety of stainless steel by China, Korea

and Malaysia following a complaint by Jindal Stainless Limited.

The commerce ministry's designated authority, the Directorate General of Anti Dumping and Allied Duties, has begun a probe

into alleged dumping of certain Hot-Rolled Flat Products of Stainless Steel 304 series.

In a notification, the DGAD has said the applicant has provided sufficient evidence that the normal value of the product in these

countries is significantly higher than the net export price.

The evidences have prima facie indicated that the product is being dumped from China, Republic of Korea and Malaysia.

The notification said that "The authority finds sufficient prima facie evidence of dumping of subject goods by the countries,

injury to the domestic industry and causal link between the dumping and injury, the authority hereby initiates an investigation."

In the probe, the directorate would determine the existence, degree and effect of alleged dumping and will recommend amount of

anti-dumping duty, which if levied would be adequate to remove the injury to the domestic industry. The DGAD is the nodal

agency under the commerce ministry for such investigations.

The notification added that the period of investigation is April 2012 to June 2013. However, for the purpose of analysing injury,

the data of previous 3 years would also be considered.

Source - PTI

(www.steelguru.com)

International Corrosion Awareness Day celebrated in India Global experts attending the International Corrosion Awareness Day late last evening jointly organised by FICCI and NACE

International Gateway India Section of NACE International stressed on the need of setting up a separate Ministry/Department to

tackle the growing menace of Corrosion in the country.

Dr AJV Prasad, Joint Secretary, Chemicals, Department of C&PC, Government of India speaking on the occasion said that India

loses more than USD 40 billion a year about 4% of the size of the total economy due to corrosion in infrastructure and industry

segments. Better corrosion control is needed at war footing to save expensive infrastructure especially in the coastal areas.

Dr Elaine Bowman, Past President, NACE International, global body fighting Corrosion, said that “Corrosion can cause damage

to everything from automobiles, drinking water systems to pipelines, bridges, factories and public buildings etc. It is estimated to

impact over 3% of GDP and is a menace adversely impacting various industry sectors including utilities, transportation, oil and

gas, steel and infrastructure etc and needs to be tackled in a scientific manner.”

He said that “Realizing the problem of Corrosion in various sectors including defense the US government has set up a separate

department US Department of Defense Office of Corrosion Policy & Oversight. India also needs a separate department on similar

lines.”

Mr Yatinder Pal Suri, India head of Outokumpu, the Finnish Stainless Steel company, said that “Better corrosion control is

needed through use of proper corrosion free materials. Stainless steel comes first in mind. The demand for corrosion free material

is on increase in high-end industries including Oil & Gas, Energy and Shipping, railways and ports. There is a need to find ways

and means to save leakages on maintenance costs due to corrosion and offer right solutions to enhance the life of products, plant,

machinery and civil structures by using suitable grades of stainless steel.”

Mr Suri said that “Stainless steel is the fastest growing segment of the metals industry,its applications are diverse and new

applications are being constantly being developed. It has become major part in all of our lives and has truly changed the world. In

India demand for stainless steel is on constant increase due to awareness about the product and availability of right grades and

sizes. The demand for the corrosion free metal is on increase in high end industries including Oil & Gas, Energy and shipping



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related industries, railways, ports, infrastructure and automotive where corrosion is a serious issue.”

Source - Strategic Research Institute, Steel Guru

(www.steelguru.com)

Steel Ministry and FICCI organise seminar to promote usage of steel slag In order to promote awareness and usage of steel slag, which is a by product in steel making, a joint seminar was oraganised by FICCI and Ministry of Steel. In the theme address, Mr ACR Das, convener of FICCI, said that ''Slag is basically a by product which can be used in many ways. All slag is not bad and hazardous. Steel slag and in particular LD and EAF Slag are being used extensively for various applications in many countries across the world including in USA, the European Union, Brazil, Australia and China. Mr Das said that “There is general perception in India that slag is not good material but it is not a fact, its just opposite and we can enhance the production base by including it in construction of roads, as rail ballast, in paver blocks and bricks, like it is happening in foreign countries.” While underlining the importance of steel slag, Mr Sudhansu Pathak, VP (Steel Manufacturing) of TATA Steel said that “Many countries have taken measures to use slag and are way ahead. It is not a waste but a valuable thing and it should not be considered as a by product but a co-product as the same in inevitable in steel making.” Source - www.newkerala.com (www.steelguru.com)

Indian Iron Ore Mining mess - SGI seeks more time for AP and Karnataka boundary

survey Deccan Herald reported that the Surveyor General of India has sought another month’s time from the Supreme Court to complete

the task of determining inter state boundary between iron-ore rich areas in Andhra Pradesh and Bellary Hospet region of

Karnataka.

In an interim report, SGI Mr Swarna Subba Rao informed the apex court that the field inspection, which was to take place

between April 13th and 17th, could not be undertaken as the district officials were awfully busy in view of the parliamentary

elections in Karnataka on April 17th.

The apex court’s green bench had directed the SGI intervention on the request by both Andhra Pradesh and Karnataka for

resolving the boundary dispute, in view of the CBI probe into the illegal mining allegedly by former minister mr Janardhana

Reddy-owned Obulapuram Mining Company and others in Bellary and surrounding areas.

The SGI informed the court that it had already written to the collector at Bellary in Karnataka and Anantpur in Andhra Pradesh to

provide necessary security and logistic support to its technical team.

Before initiation of the process, a letter was, however, received from Karnataka’s Chief Secretary, requesting the SGI to postpone

the field visit and inspection as all revenue and police officers were busy on poll duty.

Source – Deccan Herald

(www.steelguru.com)




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Iron ore shortfall can lead to flare in long prices in India As iron ore shortage looms large over India after banning mining from deemed lease (after 2007) by Supreme Court. If the SC decides on a complete ban on mining in Odisha like Karnataka and Goa earlier, it would strike at the very heart of the country's 80 million tonness domestic steel industry. These include mines belonging to steel majors like Tata Steel and SAIL where production could come to a grinding halt. It would also hit a number of smaller players including pellet manufacturers, sponge iron companies and rolling mills located in and around the mines. In the emerging scenario it is likely that more rolling mills would switch over from sponge to scrap as input material for manufacturing long products. Presently scrap market is going strong with offers to Indian importers being made at USD 390-395 per tonne CFR , Mumbai (HMS 1&2), shredded scrap is being offered at USD 400-405 per tonne , CFR In the eventuality of iron ore production getting curtailed after the ban being clamped in Odisha apart from Karnataka and Goa demand for scrap will soar leading to increase in price and input cost. Hiked input cost will lead to increased cost of production for ingot and re-rollers. However finished demand remaining sketchy owing to low demand from construction and infrastructure margin of re-rollers will be squeezed further. Source – Strategic Research Institute, Steel Guru (www.steelguru.com)

Indian steel makers to form association

PTI reported that domestic private and public sector steel makers agreed to form an association to fight common challenges at a

meeting in the presence of Steel Secretary Mr G Mohan Kumar.

The decision to set up the association, the brainchild of Mr Saijan Jindal, chairman of JSW Steel, was unanimously approved.

A source said that the association has taken shape and it has been decided that the secretariat would be based out of Delhi. The

dos and don'ts of the association have also been put together. He said that the office-bearers are yet to be chosen.

The source said when asked about its role and functions that "The association would not be a copy of ISA. It will be slightly

different.” He declined to elaborate.

The common platform would be used to take on various challenges together and work with the new government at the Centre to

find ways to achieve production of 300 million tonne of steel per annum targeted by 2025 from about 95 million tonne now.

The formation of the group comes after the Indian Steel Alliance dissolved in 2008 as leading members such as TATA Steel and

Steel Authority of India opted out. Incorporated in October 2001 as an umbrella body of leading domestic steel makers, ISA's

objective was to promote the usage of steel and development of the industry, among other goals.

Source – PTI

(www.steelguru.com)



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Mr Narendra Modi's remarks on manufacturing bring cheers to steel makers Business Standard reported that when prime ministerial hopeful Mr Narendra Modi asked at an election rally if anyone knew of a

country that exported wheat but imported bread, steelmakers joined his followers to cheer.

Mr Modi said at the rally in the steel city of Jamshedpur last month that "The government in Delhi is such that it exports iron ore

but imports steel. If you run your business like this, how will the country's steel industry survive?"

One of Modi's main election planks is to crank up manufacturing to create millions of jobs by focusing on exporting steel, not

iron ore; textiles not cotton. Results of the five-week election are due on May 16th.

For steel executives, it was just what they wanted to hear: their calls to restrict exports of iron ore further will be met if Modi's

Bharatiya Janata Party wins the election.

While the move would mean a captive supply of iron ore for steelmakers, it would further dim the prospect of Indian iron ore

returning in a big way to the world market.

Source – Business Standard

(www.steelguru.com)

Indian sponge iron units pin hope on new infrastructure projects

Business Standard reported that the domestic sponge iron industry, reeling under high input costs and poor demand, hopes that a

stable government at the Centre would take up pending infrastructure projects, which would spur growth in the sector.

According to experts, in the last 3 to 4 years, production has come down substantially, as about 50% of sponge iron units are

closed. Even in the existing units, the production has come down to half its original capacity.

Industry officials said that only encouraging policy rollout by the new government could help the domestic sponge iron

producers. The sponge iron is used by the steel industry and finds application in both flat as well as long steel product segments.

It is also used in a big way in infrastructure projects and construction industry. India is one of the largest producers of sponge iron

in the world.

According to Sponge Iron Manufacturers Association data, India has a total installed capacity of 37 million tonne.

Mr B L Biyani ED of Mohit Steel Industries said that “We are banking on large long-term projects to be announced by the new

government. This will help the sponge iron demand pick up and revive the industry. Goa based Mohit Steel manufactures mild

steel ingots, which sources sponge iron from its captive plant in Karnataka. The same sentiments were echoed by other sponge

iron producers, too.”

A senior official from Kolkata based Jai Balaji Industries said that “Once a stable government comes to power, the sponge iron

market is expected to pick up, as the government is expected to initiate policies that will perk up steel demand.”

An industry source said that “A lot depends on sale of finished steel in the market. Until the government does not bring in some

new policy to push up the demand for finished steel, we cannot see an upward movement.”

However, most sponge iron producers were unanimous that once requirement for large long-term construction projects comes in

from the new government, the steel industry will prefer domestically produced sponge iron to imported scrap steel.

Source - Business Standard


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