Steel Re-Rolling Mills Association of India · 48th Issue Steel Re Rolling Mills Association of...

48th Issue Steel Re Rolling Mills Association of India visit www.srma.co.in

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SRMA STEEL NEWSLETTER

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 Committee Member

5. Shri Kailash Goyal “

6. Shri Om Prakash Agarwala “

7. Shri Sushil Sharda “

8. Shri Sandip 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 G P Agarwal

“

21. Shri Suresh Goyal

“

22.

Shri Hari Mohan Beriwala “

23. Shri Sitaram Agarwal “

24. Shri Sonal Mittal

“

25. Shri Avinash Bagla

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26. Shri Shankar Lal Agarwal

“

27. Shri Sandip Gupta

“

28. Shri Dilip Agarwal

Special Invitee

29. Shri Vivek Adukia

Special Invitee

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

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Disclaimer :

SRMA Steel News is a division of Steel Re-Rolling Mills Association of India and takes due care in preparing this

news. Information has been obtained by SRMA from sources, which it considers authentic. However, SRMA does

not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or

omissions or for the results obtained from the use of such information. SRMA is not liable for investment decisions,

which may be based on the views expressed in the News. SRMA especially states that it has no financial liability

whatsoever to the subscribers/users/transmitters/distributors of this News. And no part of this news may be

published /reproduced in any form without SRMA’s prior written approval.

Latest Steel News

Taxation/Legal (Circular/Notification)

Environment and safety

Events

CONTENTS


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SRMA


PM Narendra Modi's Make in India plan can

boost steel sector slump

KOLKATA: Government move to kickstart investments

through fiscal measures is crucial for a pick up in the

economy since corporate sector continues to remain

cautious on investments. A Crisil survey of 192 listed

companies has showed that planned capex by private co mpanies was likely to decline by 11% in 2015-16

alongwith a decline in the manufacturing sector.

However, the Centre's 'Make in India' initiative can

make a difference to the steel sector.

n the present scenario, capacity addition is likely to be

far lower than announcements to the tune of 90 million tonne (mt) of crude steel capacity. Indian

steelmakers are estimated to add only around 34 mt of crude steel capacity between FY15 to FY19,

according to Crisil Research estimates. This would translate into 30 mt of finished steel against an

incremental demand of 25 mt during this period. While demand for flat products that go into automobiles

and account for a fifth of steel consumption is estimated to go up by 7% in next 4 to 5 years, large players

will dominate capacity additions during this period with a number of them adding capacity in the long

products segment which has traditionally been dominated by small non-integrated players and re-rollers.

This segment is set to see demand grow at 6% compounded annual growth rate (CAGR) over next five

years.

Most of the capacity additions will be through brownfield expansions, primarily because of issues relating

to land acquisition, environmental and forest clearances will curtail expansions in the medium term.

"Over the years, big steel projects have been facing the brunt of delays, conflicts and litigation over land

ownership and compensation," the study said. Also, some foreign companies have announced withdrawal

of investment in certain states.

Interestingly, a slowdown in China where demand is likely to grow by a mere 1-2% in next five years,

against double digit growth in the past, offers India an opportunity to emerge as a major global steel

player in its own right. It is here that the Make in India initiative can make a big difference, the Crisil

report added.

Steel consumption has not seen sustained growth due to stagnancy in manufacturing. The latter remained

stuck 15% of GDP in last 30 years though service sector has been growing. While lack of infrastructure,

financing, land acquisition and rigid labour laws have been largely responsible in holding back

manufacturing, for developing the Indian steel industry all these factors need to be taken care of. This

includes resolution of mining issues and clarity on new mine allocations. The government should also

evolve policies that will support India's long term vision as net steel exporter. "Focus on manufacturing is

of critical importance not only for high growth of the sector but also for long term economic growth," the

Crisil report pointed out. The government's 'Make in India' initiative promises to increase consumption

and has the potential to realize the ambitious target of raising the share of manufacturing to 25% of GDP.

In this, India is trying to emulate China and South Kore where manufacturing is a major growth

driver for the economy, accounting for 34% and 30% of GDP respectively.

http://economictimes.indiatimes.com/topic/Indian-steel-sector : ET Bureau | 24 Apr, 2015, 03.48PM IST


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Steel sector seeks government action on

cheap Chinese imports

KOLKATA: Tata Steel today said the Indian steel industry is seeking support from the

government to face the challenge posed by import of steel from China and ther countries at much

lower prices.

"Indian steel industry is struggling because a lot of cheap imports are coming in, including from

China, and they have approached the government. Let's see what happens," Tata Steel Managing

Director T V Narendran told reporters on the sidelines of a CII event.

Asked about the impact of increase in import duty on steel in Budget proposals for 2014-15,

Narendran said: "In the budget they have only increased the peak duty, they have not increased

the basic duty so that's something we are discussing with the government."

He said the current import duty on steel in India was among the lowest in the world and if the

government wanted to encourage local manufacturing and local investment, then there should be

some sort of support.

According to his estimates, total steel import by India in 2014 was around 8 million tonnes.

India's steel imports during the first 10 months (April-Jan) of 2014-15 stood at 8.127 million

tons, up 69 per cent as compared to only 4.803 million tons imported during the corresponding

period of 2013-14, according to India Steel Market Watch data.

There is also a concern because in Russia the rouble is ruling very weak and that is also creating

a pressure, Narendran pointed.

Asked about imposing dumping, he said: "That is the point of discussion because dumping is a

very technical definition, but what industry is saying that there should be some sort of support

because establishing dumping cases take some time."

http://economictimes.indiatimes.com/topic/Indian-steel-sector : By PTI | 20 Mar, 2015, 11.04PM IST

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The Chinese finished steel import glut

Indian Plate manufacturers are struggling to keep their head above

water, as the glut in the Chinese finished steel market has led to

surge in Plate imports to India by 400 per cent. Imports of Plates

from China in H1 FY15, has reached 0.17 MnT as compared to

only 34,570 MT in H1 FY14. Declining prices in China &

slowdown in domestic demand has been a cause of concern for

Indian Steel manufacturers. China’s dumping of Steel products in

India has seriously disturbed the price dynamics in India.

As per the official data available with Steel 360, we learnt that the

total value of Chinese Plate imports to India in H1 FY15 touched INR 7.14 billion against INR 1.39

billion in H1 FY14. Rising import has affected Steel producers in India, since prices have hit the lowest

levels in last 4 months.

Worried over the surging imports of Plates from China, domestic manufacturers have increased discounts

by INR 500-1,000/MT to reduce the big gap in the domestic & imported plate prices. During October,

2014 prices were around INR 41,500-42,500 per MT, whereas commercial grade imported Chinese Plates

were offered at INR 40,500-41,000 per MT. Manufacturers like Essar, JSPL & SAIL have been battling

with this cheaper price regime.

There have been several proposals to impose a safeguard duty on cheaper imports, however no such

concrete measure has been taken so far. An industry expert quips the subsidies offered to Chinese

producers for manufacturing steel gives them a cost

advantage & makes Indian steel products vulnerable to

unfair price competition.

Total imports of Plates to India have increased to 0.4

MnT in H1 FY15 from 0.22 MnT in H1 FY14.

Imports from France, Ukraine and China have

appreciated to the highest during H1 FY15 as

compared to the same period last year. A break up of

the import basket gives a more clear picture.

India’s Export Competition

Cheaper Chinese plates are not only affecting domestic prices in India, it is also leading to competitive

pricing in the international market thereby affecting India’s export markets. India mainly exports Plates to

UAE, Iran, South Asia, North America and Europe; however Chinese plate prices have affected Indian

offers in the international markets to a certain extent. The only respite to Indian manufacturers is

improvement of prices in the US and some European markets. This could possibly help Indian exporters

to gain traction in selling their products in these markets.

The current situation for Iron ore & Steel industry in India is extremely grim. If our trade policies are not

aligned as per the needs of the domestic industry, it will be difficult to protect the manufacturers India.

We have exported the benefits of Iron ore mining bubble to China in the past and currently we are

importing the glut of Chinese Finished Steel to India. It’s high time when policy makers need to take a

note of this and bring in serious policy reforms to shield the domestic industry from extinction.

Source : http://news.steel-360.com/steel/the-chinese-finished-steel-import-glut/

http://news.steel-360.com/steel/the-chinese-finished-steel-import-glut/


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SRMA


Domestic Steel Price need to come down

It is good to see that market realities are dominating the price strategies in the domestic semi-oligopolistic iron ore

segment, NMDC has reduced prices of fines by Rs. 500/t and lumps by Rs.200/t for the balance 12 days of April’15

At Rs.3,050($49.1/t) the supply price for the lumps and at 1960 for the fines, the domestic prices are comparable

with global prices of $50/t for Platts index for 62.5% Fe CFR China, However If royalty and the compensation to

the DMF and railway freight are added, the final prices at the customers and would be higher than imported iron ore.

Any further drop in global prices of the iron ore, which is likely in May, in the differential would go up. Lowering of

the global prices by another $10/t may still be sustainable by the four dominant players given the current cost

production. Indian steel manufacturers are deprived of freight parity as substantial drop in vessel hiring charges did

not get reflected in the domestic railway freight rates which with the latest changes in tariff classification in steel

have only moved up for the last two months.

A fall of around $80/t in steel scrap prices in the recent period has made imported scrap (SMS:80/20 variety)

available at $300-305/t in Mumbai. The drop in prices in scrap, while temporarily increasing demand has made the

production wary of scrap recovery process and may lead to inventory accumulation of obsolete scrap.

Correspondingly sponge iron prices are ruling at average Rs.16,000-17,500/t ($255-280) range. The thermal coal

(non-coking) prices are currently available at an average prices $60/t fob Australia with cocking coal spot prices are

lower than $109/t fob contract prices of SAIL/RINL. However more than the prices, it is the limited availability of

coal in the domestic market and the possibility of a hike in prices to make up the cost of auctioning when

production begins at the completion of the process remains worrying factor for the secondary sector before they

obtain any reduction in the cost of steel production.

Another interesting feature of international steel trade in the variation of actual transaction prices as compared to the

official quoted prices depending on the logistics, volume, period of contact, sizes and grades and highly volatile

political scenario in specific zones. The official quoted prices for HR Coils by China at $413/t ex-Shanghai is

offered at $380-390/t CFR Mumbai for actual transaction. For regular buyers it is available even at lower quotes.

Due to prolonged political crisis, Ukraine and Russia are offering HRC at around $365/t CFR Mumbai against

official quotes $375/t fob Black Sea. Assuming that the government hikes the customs duty rates by another 5-

7%, domestic prices would still be higher.

The spread between HR and CR at $90-100/t and between CR and HDG at $60-70/t is not much different from

the earlier trend. However, the spread between Billet and Slab in the global market has widened with slab prices

regularly coming down reflecting a lower demand for the flat products compared to long. The domestic market also

exhibits in similar trend. It is apparent that downward trend in raw material prices in the global market has not

replicated itself in the domestic market.

THE FINANCIAL EXPRESS, NEW DELHI 29.04.2015

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TAXATION/ LEGAL NEWS

Re : Filing of Profession Tax Returns - for 2014-15 and onwards.

Members are requested to note the following in connection with the filing of Profession Tax

Returns for 2014-15 and onwards :

1. The Last date of filing Profession Tax Return for 2014-15 has been extended to 31.05.2015

(for electronic transmission) and 15.06.2015 (for submission of hard copy) under Order dated

27.04.2015 of the Commissioner of Commercial Taxes & Profession Tax, West Bengal.

2. For filing of Return for 2014-15 onwards, every registered employer shall have to update

their existing Registration Certificate (with 10 character alpha-numeric RC Number) to obtain 12

digit new Registration Certificate Number through egov.wbcomtax.gov.in > Profession Tax > PT

Registration > Update existing Registration Records. The link is

http://egov.wbcomtax..gov..in/PT Registration/homeAction.do?parameter=dolnit.

The registered employers who are also holding Profession Tax Enrollment Certificate (EC), with

10 character alpha-numeric EC Number, are also required to update the EC first (i.e. before

proceeding to update the RC) to obtain 12 digit new enrollment certificate number through

egov.wbcomtax.gov.in > Profession Tax > PT Enrolment > Update existing Enrolment Records.

The link is http://egov.wbcomtax.gov.in/PT Enrollment/homeAction.do?parameter=dolnit#no

back-button.

3. The User ID & password, for filing PT Return for 2014-15 onwards, through the new

PT_Return module with be as under :

User ID : The 12 digit RC No.

Password : As used while sign-up ; re-set of password by the registered employer is possible

with the help of registered mobile phone.

4. The New PT_Return module for filing Profession Tax Return for the period 2014-15 and

onwards has been hoisted in the official web-site of the Directorate of Commercial Taxes.

It can be accessed by egov.wbcomtax.gov.in > Profession Tax > Login for e-Return

>e Return : New Module

The link is : http://egov.wbcomtax.gov.in/PT Return/.

http://egov.wbcomtax.gov.in/

http://egov.wbcomtax.gov.in/PT






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ENVIRONMENT & SAFETY

Occupational safety and health skills development

By building upon advances already

made through employer and employee

initiative for providing safe and healthy

working conditions;

By providing for training programmes

to increase the number and competence

of personnel engaged in the field of

occupational safety, health and

environment at workplace;

By providing information and advice, in

an appropriate manner, to employers

and employees organisations, with a

view to eliminating hazards or reducing them as far as practicable;.

By establishing occupational health services aimed at protection and promotion of health

of employee and improvement of working conditions and by providing employee access

to these services in different sectors of economic activities;

By integrating health and safety into vocational, professional and labour related training

programmes as also management training including small business practices;

By adopting Occupational Safety and Health training curricula in workplace and industry

programmes; There is a need to develop close involvement of social partners to meet the challenges ahead in the

assessment and control of workplace risks by mobilising local resources and extending protection to such

working population and vulnerable groups where social protection is not adequate.

Government stands committed to review the National Policy on Safety, Health and Environment at

Workplace and legislations through tripartite consultation, improve enforcement, compilation and

analysis of statistics; develop special programmes for hazardous operations and other focus sectors, set up

training mechanisms, create nation-wide awareness, arrange for the mobilisation of available resources

and expertise.

The National Policy and programme envisages total commitment and demonstration by all concerned

stake holders such as Government and social partners. Our goals and objectives will be that through

dedicated and concerted efforts consistent with the requirements of safety, health and environment at

work place and thereby improving the quality of work and working life.

Source : Ministry of Labour, Govt of India


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EVENTS

Steel Success Strategies Date: 08 - 10 June 2015

Location: Sheraton New York Times Square Hotel, NY. Organised by Metal Bulletin.

Covers world steel markets, steel industry, iron ore derivatives, steel derivatives, raw materials, logistics,

steel technology.

INTERNATIONAL INNOVATION AND TECHNOLOGY EXHIBITION (INOTEX)

9-12 June 2015, Tehran

TEHRAN PERMANENT INTERNATIONAL EXHIBITION FAIRGROUND

Companies interested to participate are requested to send their pre-registration form (attached) to Mr Amit Tyagi [email protected]. INOTEX 2015 evaluation committee will assess the registrations and confirm final acceptance or

rejection.

10th Asian Stainless Steel Conference

3 - 4 June 2015 - Marina Mandarin - Singapore

Metal Bulletin Events mailing address

Metal Bulletin Events Nestor House Playhouse Yard - London, EC4V 5EX, UK

Minerals, Metals, Metallurgy, Materials (MMMM Expo) Date: 10 - 12 August 2015

Location: Pragati Maidan, New Delhi, India.

One of the most significant events in the Indian minerals, metals and materials market and claimed to be

an ideal B2B platform for entrepreneurs, CEOs, consultants, senior government officials, decision makers

and trade delegations looking to network, brainstorm and forge meaningful business partnerships.

CIMIE 2015 – the 11th Metallurgy Expo 2015, China Date: 08 - 10 September 2015

Location: New China International Exhibition Centre, Beijing. Organised by Beijing Hiven Exhibition Company.

Sponsored by the Beijing Society of Metals, the Non-Ferrous Metals Society of China, the Beijing Mechanical

Engineering Society and the China Association of Plant Engineering, CIMIE 2015, which stands for China

International Metallurgy Industry Exhibition is recognised as one of the four largest global metallurgy exhibitions.

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