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Iron & Steel Review October 2011 Issue

Highlights of the Issue

Indian Steel Industry - Competitiveness and Challenges


Shortage of Iron ore cripples S
The iron and steel industry is gloomy in India, facing a big shortage of iron ore. A huge number of sponge iron plant manufacturers and small steel units are on the verge of closure. Already some of these have rolled down their shutters.

Indian Steel Industry - Competitiveness and Challenges

India currently stands at an impressive record of economic growth. The average GDP growth in 2007-2010 was recorded at 8%. Besides, there was acceleration even within the tenth five year plan period (2002-2007) where the growth rate in the last four years (of the plan) had averaged 8.7%, making India one of the fastest growing economies in the world.


  • Steel Minister reviews performance of SAIL
    The Union Minister for Steel, Shri Beni Prasad Verma has reviewed the performance of Maharatna Steel Authority of India Ltd. (SAIL) during Q1 (April-June) of FY '12.
  • SAIL gives Rs. 1 crore for flood relief at Odisha
    Shri C.S. Verma, Chairman of Maharatna Steel Authority of India Limited (SAIL), presented a cheque of Rs. 1 crore to Shri Naveen Patnaik, Hon’ble Chief Minister of Odisha, for the Chief Minister’s Relief Fund, to provide relief to the flood affected people of the state.
  • Steel Minister releases Agenda for next 100 days
    The Union Minister for Steel, Shri Beni Prasad Verma has released the Agenda for the next 100 days for his Ministry. The Agenda envisages increase in steelmaking capacity in India to 200 mt by 2020 and a proactive mechanism to ensure time bound progress for all PSU projects.
  • SAIL VISL Unit gears up for enhancing market share
    Visvesvaraya Iron and Steel Plant (VISL), a unit of Maharatna Steel Authority of India Limited (SAIL) has set a goal of about 9 per cent share in the Alloys and Special Steels' market in the coming years.
  • Siemens reaches an important milestone with the delivery of 100th Gas Insulated Switchgear
    Siemens Limited reinforces its commitment to offer latest technology to Indian Customers at an affordable price in the fast growing demand for Gas Insulated Switchgear.
  • Steel Ministry panel for Rs. 600 cr allocation on R&D in 12th Plan
    Press Trust of India reported that a Steel Ministry panel has recommended five-fold increase in fund allocation at Rs. 600 crore for research and development (R&D) activities in the sector during the 12th Plan Period ending 2017. Allocation on R&D for the current Plan period is at Rs. 118 crore.
  • NMDC buys 50% in Australia's Legacy Iron Ore
    India's largest iron ore miner and exporter, NMDC has decided to buy 50% stake in Australia's Legacy Iron Ore for Rs. 92 crore, which will make the navaratna company's first overseas foray and one that will give it access to key mineral resources down under.
  • SAIL mines to produce more for steel capacity expansion
    According to latest news, India's steel major Steel Authority of India Ltd. (SAIL) will increase the production from its mines to 38 million tonnes in keeping with the steel capacity expansion.
  • NMDC wins PSU Excellence Award 2011
    The Department of Public Enterprises, Government of India and Indian Chamber of Commerce conferred the PSU Excellence Award 2011 to NMDC Limited, as Company of the Year in the “Navaratna” category.
  • Performance Review of NMDC by Hon'ble Union Steel Minister
    Shri Beni Prasad Verma, Hon'ble Steel Minister reviewed the performance of NMDC Limited, a Navratna PSU under Ministry of Steel, for the first quarter (April-June), 2011-12 on 28th September, 2011.


Badische Stahlwerke finds upgrade solutions for mill with Siemens VAI
Badische Stahlwerke GmbH, Kehl, Germany has selected Siemens VAI to undertake an extensive upgrade for its wire rod rolling line. The automation system of the two-strand wire rod mill will be thoroughly modernized, and two new rod outlets will be installed. The aim is to achieve greater efficiency and to adapt the mill to market requirements. The order value is in the medium double-digit million Euro range. The project will be carried out in three phases and will be finished in early 2014.

Siemens VAI receives third Finex order from Posco
Siemens VAI Metals Technologies received an order from Posco Engineering & Construction Co., Ltd. (Posco E&C), a subsidiary company of the Korean steel producer Pohang Iron and Steel Co. Ltd. (Posco), for engineering and the supply of proprietary equipment for a Finex 2.0M plant.

Outotec raises its sales guidance for 2011
Based on strong order intake in 2011 and good progress in project execution, the Outotec's management expects that sales in 2011 will grow to approximately EUR 1.35-1.45 billion.

RHI AG begins construction of first plant in Brazil
RHI AG, the global refractory products leader for the steel, cement and glass sectors, has begun to build its first factory in Brazil, located in the Industrial District of Queimados, part of the Rio de Janeiro metropolitan region. Investment for its first phase will be ¤85 million and the factory will create 200 direct and about 400 indirect jobs. The start of production is planned for the third quarter of 2013.


Structural Mills in Indian Steel Plants - An Overall Technological Prospective
The rolling of sections in rolling mills began in the early years of the nineteenth centuries. Samuel Leonard of Pittsburgh has been the first to roll such products in U.S.A. in 1819. However, the pass designs for rolling the angles have undergone progressive improvements over the period. In 1881, an angle design patented by J.L. Lewis featured a “Butterfly” design. The butterfly layout for rolling angles has been the most commonly used design.

Optimize Purchase through Reverse Auction
The aim of any manufacturing organization is to produce products to meet the end-customer requirements. One of the key differentiators which influences a customer's buying behaviour is the price of the product. With the cut-throat competition and increasing input prices, cost reduction is a must to help maintain/increase margins. It is also a well-known fact that more than two-third of the total cost of steel production accounts only for Material and Energies costs, therefore, efficient purchasing and sourcing has been identified as one of the thrust areas for improvement in most of the steel manufacturing companies.

Some Problems of Smelting the hematite ore samples for Pig Iron Production
In Odisha, there is a massive deposit of Pure Hematite Grade Iron Ore, which is apparently suitable for pre-reduction and smelting in Ironmaking process. Some tests were conducted with this ore and difficulties encountered are mentioned below.

Indian Steel Industry Outlook
Globally, the steel industry has gone through significant reforms since the 1970s with China emerging as a significant producer and consumer followed by Japan, United States of America, Russia and India. The volume consumption of steel is regarded as the barometer for measuring a country’s economic progress and development.


Any acquisition of land, not only results in uprooting the affected people from their usual habitation, but also severely affects their livelihood. Rehabilitation and resettlement are very crucial issues concerning and land acquisition.
Mr. Santosh Mahanti : In Odisha, Land has been the major issue, are we in a position to invite foreign companies to setup a steel mill in India, when it has become difficult to manage the existing steel production and the per capita consumption is far below our capacity? How would you address this issue?


Steel Supply Chain Management Trends: An Indian Perspective
The steel industry in India has been on a growth curve for the last several years and with the increasing urbanization and infrastructure development, the momentum is expected to continue. According to government predictions, India's domestic steel output is expected to cross 120 million tonnes by 2012-2013, from nearly 70 million tonnes from the year 2009/10.


Modern high strength Niobium Microallyed structural steels
The application of steel in the construction of civil building structures dates back well over 225 years. Indeed, one of the well-known structures using cast iron is the Ironbridge (Shropshire, U.K.) built in 1779 using approximately 338t of cast iron. However, although this was based on a carbon content of 2-4%, the structure put into place the beginnings of all modern steel bridge construction practices. The application of steels in such civil construction projects allowed the following advantages: (i) reduced construction time; (ii) reduced costs; (iii) reduced maintenance; (iv) greater load bearing capability, and; (v) better strength to weight ratios.


Stainless Steelmaking in 60T Argon Oxygen Decarburization Furnace in SAIL Units - Process Regime & Performance of Vessel Lining
Stainless steels contain from 10-30% chromium, varying amounts of nickel, molybdenum, copper, sulphur, while titanium, niobium, etc are added to obtain desired mechanical properties. Stainless steels are primarily classified as austenitic, ferritic, martensitic, duplex or precipitation hardening grades. The first stainless steel grades that were commercially produced in the United States were similar to Gr. 302, 410, 420 and 446.


Use of Refractory in Steelmaking - Developmental Trends
Iron and steel industry is the major consumer (70%) of refractories. Refractories and steelmaking process technology have constantly been upgraded to increase production capacity and productivity of various steelmaking units. Although various steelmaking processes have been evolved over the last 100 years, the main route of ironmaking is still the blast furnace. Major steelmaking route in integrated steel plant is now BOF.


Exim incentive be deprived of ferro alloys
The domestic demand of manganese ore to the ferro alloys industry in India in this decay and further increasing the demand due to new production capacities are coming up in industry, against the huge shortage of ore. As per concern of manganese ore, globally the prime manganese ore deposits are available in South Africa, Australia, Brazil, Gabon, Mexico, Ukraine, Kazakhstan, Ghana, and other countries.


Colakoglu hot strip mill: Mechanical equipment plus electrical and automation systems - SMS Siemag supplies from a single source
Çolako lu Metalurji is a Turkish family-run business which during the last few decades has turned from steel trader into steel producer. With its hot strip mill, Çolako lu Metalurji expanded its product portfolio from long products to highquality hot strip, thus opening up a new chapter in the history of the company. Turkey's currently most modern hot strip mill was supplied completely by SMS Siemag.


Media and Industry Analyst Summit organized by Drive Technologies Division (Siemens)
Siemens paves the way forward by providing optimum help and support to its valued customers to perk up Industrial productivity. The rate of production is backed by more torque and economic norms in the course of integrated solutions. Giving a focal eye on the same, Drive Technologies Division of Siemens organized a media and industry analyst's summit at Mumbai where senior management personnel, Siemens AG representatives and management team (Siemens India) participated and shared their views and opinions.

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