1. STEEL INDUSTRY

2. Introduction of steel:
• Steel was first made by cementation, a process of heating bars of iron
with charcoal in a closed furnace
• Steel is an alloy of iron, carbon, and small proportions of other elements.
• Iron contains impurities in the form of silicon, phosphorus, sulfur, and
manganese; steelmaking involves the removal of these impurities, known
as slag, and the addition of desirable alloying elements
• Steel was known in antiquity, and may have been produced by
managing bloomeries, or iron-smelting facilities, in which the bloom
contained carbon
• In 1866 by Sir William Siemens, uses iron ore and pig iron to produce
steel
• Steel is classified by its carbon content: High carbon steel, Low or
medium carbon steel, Alloy steel, Aluminum steel, Chromium
steel, Nickel steel, Nickel chromium steel and Stainless steel

3. Steel Industry in India:
• India is the largest producer of sponge iron and fourth largest producer of
steel in the world
• India registered a 5.7% growth in crude steel production in 2011
• Steel-making company based in New Delhi, India and one of the top
steel makers in World. With a turnover of 486.81 billion (US$7.4 billion)
• It is a public sector undertaking which trades publicly in the market is
largely owned by Government of India and acts like an operating
company
• Given the uncertainty in the global economy, export growth seen in the
recent months may not be sustainable
• Steel exports increased by 12.7% in April-June period of 2013 mainly
because of a depreciating rupee and export incentives
• With a capacity of about 15 million tones estimated to come up in
FY'14, which is equal to almost 16% of the domestic capacity at the end
of FY'13
• India, growth in apparent steel use is expected to grow by 6.9% in 2012
and by 9.4% in 2013

4. Export contribution of Steel:
• In India steel exports began only in the year 1964
• Iron and Steel are freely exportable
• Duty Entitlement Passbook Scheme (DEPB) was introduced to facilitate
exports
• For the first time, steel exports from India have crossed the million tones
mark in three months in 2013
• Tata Steel exported 240,000 tones of steel in 2012-13, more than three
times of 70,000 tones exported in the previous year.
• SAIL, exports of steel materials stood at 368,000 tones in the just
concluded fiscal year, up over 11% from the preceding year’s 334,000
tones
• At JSW Steel Ltd, the norm is to export 20% of production had an output
of 7.815 mt in 2011-12.
• Since all steel mills are expanding capacity, exports are expected to rise.

5. Indian steel industry Exports in million ton
9
8.2
8
6.7
7
6
5
4
4.04
3
2
1
0
2009-10
2010-11
2011-12

6. Current Scenario:
• The World Steel Association (WSA) has predicted a growth of 5%
consumption of steel in India
• The domestic steel demand is expected around 5.5%
• Domestic steel companies are increasingly targeting a substantial chunk
of their production for exports
• While the rupee fall and slow demand at home is acting as an immediate
trigger, a more compelling reason for exports could be to find alternative
markets
• India is expected to be the world's second largest producer of steel by
2014
• The demand for steel is expected to rise 7% by 2014

7. Market size:
• India's steel production increased by 0.9% to 6.45 million ton (mt) in
June 2013, as against 6.39 mt in June 2012
• India fared better than rest of the world in terms of average output for the
first six months of 2013
• India’s steel production grew by 2.5% to 39.63 mt in the six month
period January-June 2013 as against 38.68 mt in the same period in 2012.
• During the same period, world crude steel production was 789.8
mt, recording an increase of 2%

8. Category of steel:
• Carbon Steels- contain trace amounts of alloying elements and account
for 90% of total steel production
– Low Carbon Steels/Mild Steels contain up to 0.3% carbon
– Medium Carbon Steels contain 0.3 – 0.6% carbon
– High Carbon Steels contain more than 0.6% carbon
• Alloy Steels- contain alloying elements (e.g.
manganese, silicon, nickel, titanium, copper, chromium and aluminum)
• Stainless Steels- contain between 10-20% chromium
• Tool Steels- contain tungsten, molybdenum, cobalt and vanadium in
varying quantities

9. Major steel producing countries 2012:
• China (716.5mt)
• Japan (107.2mt)
• United States (88.7mt)
• India (77.6mt)
• Russia (70.4mt)
Major Exporter of steel according to 2012:
• China (54.8mt)
• European Union (47.1mt)
• Japan (41.5mt)
• Russia (26.7mt)
• India 17th place (8.2mt)

10. Major Importer of steel according to 2012:
•
•
•
•
•
United States (31.5mt)
European Union (29.5mt)
Germany (22.9mt)
South Korea (20.4mt)
India 13th place (9.3mt)
List of Top Steel Companies in India:
•
•
•
•
•
TATA steel (20%) - Mumbai
SAIL (10%)- New Delhi
JSW steel (8%)- Mumbai
Visa steel (5%)- Jaipur
Bhushan steel (3%)- New Delhi

11. Market share of steel by countries in 2012
50
45.5
45
40
35
30
23.6
25
20
15
10
7
5.6
5
4.7
4.5
4.5
2.3
2.3
0
China
Japan
US
India
Russia
South Ukraine Brazil
Korea
ROW

12. Ministry of Steel:
• The Ministry of Steel is under the overall charge of the Hon'ble Minister
of Steel
• This has direct control and supervision on the country’s total steel
producing companies in India
• Mr. Beni Prasad Verma serves as the Minister of Steel Industry
• All the exports and import transactions are controlled by the ministry
• The ministry holds the responsibility for framing policies and regulation
norms with regard to the sector in India
• The ministry effectively contributes its service through administration and
designing financial propaganda supporting steel and iron ore production
inside the country

13. Incentives to the steel industry:
• In union budget 2012-13 as well as in 12th five year plan
draft, government had took lot of steps towards the infrastructure sector
• In FY13 budget custom duty has reduced to 2.5% from 7.5% on plant and
machinery
• Other steps taken by the government are 100% FDI allowed through the
automatic route in the sector
• Large infrastructure projects in Public-Private partnership mode are being
formed
• Basic Custom Duty (BCD) on stainless steel flat products may be
increased from the existing level of 5% to 15%

14. Ministry of Steel’s promotion of R&D:
Ministry of Steel is encouraging Research and Development activities both
in public and private steel sectors by providing financial assistance under the
following two schemes:
• R&D with Steel Development Fund (SDF)
Year-wise release of SDF fund during the last 5 years is given below:
2007-08
10.12 cr
2008-09
7.27 cr
2009-10
11.26 cr
2010-11
20.65 cr
2011-12
3.01 cr
2012-13 (up to Sep’2012)
7.37 cr

15. R&D with Government Budgetary Support (GBS):
Year-wise release of fund is as follows:
2009-10
4.14 cr
2010-11
27.05 cr
2011-12
9.63 cr
2012-13 (up to Sep’2012)
11.97 cr

16. Packing methods of steel:
•
•
•
•
Packing involves color coding of each bar to client’s specification
Each bar bears a sticker detailing grade seal of the inspector
Non metallic spacer rings or collars placed on each bar
Steel is wrapped with HDPE foam/film before being inserted into cartons
and boxes
• Each bar/rod is wrapped in multiple layers and packed in wooden boxes

17. Distribution process:

18. THANK YOU