Steel Insights, December 2022

15 Imported scrap market sees limited trades 16 India pig iron production up 42% y-o-y in October

India’s October sponge iron production up 5%

India October crude steel production up 2.7% y-o-y

PLI capex expected to surge from FY24: ICRA

Focus on steel decarbonisation to achieve carbon neutrality: study

Seaborne coking coal offers fall in November

India iron ore offers rise post export duty action

Car sales shine even post festivities

Iron ore handled by major ports down 28%

Indian Railways’ iron ore handling down 5%

India needs to exploit its mineral potentials: Industry leaders

Global crude steel output down 3% in October m-o-m

Tata Steel sources green rebar mill from Danieli for Ludhiana plant

Divest bids invited for NMDC Nagarnar plant

RHI Magnesita to acquire refractory biz of Dalmia Bharat

JSL to set up stainless steel park in Odisha

EVENT

Enabling policy support, infra needed for transition: ISA conclave Climate change and its impact on industry under focus.

6 | COVER STORY

Duty cut boost to exports Step follows 15-20% domestic price correction since May.

30 | INTERVIEW

“Our new plant at Chakan in Pune is fast nearing completion”

Sourav Sen, MD, Eirich India shares his views of the industry and plans for the company.

40 | INTERNATIONAL

Jindal Shadeed to invest $3 bn in Oman green steel unit

Plant to come up at world’s largest green hydrogen-ready steel facility.

Duty cut boost to exports Duty cut boost

Sumit Maitra

The government rolled back the export duties levied on the steel sector through a notification on November 18 after domestic steel prices corrected by 15-20 percent since duties were earlier imposed on May 21, 2022.

Hefty export duties on steel and steelmaking raw materials were removed.

Export duty on high grade ore and pellets was reduced to nil.

Similarly, the 15 percent export duty put on pig iron, hot-rolled and cold-rolled alloy and non-alloy flat steel products of 600mm or more in width has also been slashed to nil.

Earlier on May 22, the Indian government had imposed these duties in a bid to preserve higher domestic supplies and control rising prices. Following this move, exports of iron and steel products witnessed a significant drop.

The duty rollback came at a time when coal costs are starting to moderate, and domestic demand picks up in the second half of FY23. Consequently, from the second quarter lows, the industry’s profits are likely to increase going forward.

For the first time since fiscal 2019, the country became a net steel importer between July and August.

Removal of export duty on steel products will lead to a new era of growth for the domestic steel industry which has gained footprint internationally, Steel Minister Jyotiraditya Scindia said.

It has taken years for the domestic steel industry to gain footprint in the international markets, the steel minister said recently at

a conference of Indian Steel Association (ISA).

The government has cut the export duty on steel products and iron ore to nil with effect from November 19, 2022 — six months after imposition of the levy on May 21.

“It has taken if not months then years for our industry to be able to to firmly plant its footprint internationally… (On) steel product, the duty has been removed completely from Friday evening enabling a new era for the steel industry to grow,” he said.

The decision was taken very judiciously after taking all stakeholders’ concerns into account. There were several rounds of

discussions with the advisory committees on integrated steel plants (ISP) and secondary sector players who were of the view that the duty should be removed.

“Finally we came up with the judicious reasoned argument with which I approached both group of ministers and finance ministry, and I promised industry that we will take clear cut opinion certainly by November,” he said.

After so many years, Indian steel industry has been able to enlarge its footprint globally and therefore it was “our (government) job to provide a fillip” to the industry, he said. “I can understand the pains of customer acquisition and customer retention,” Scindia added.

“India will be making steel not only for

“Removal of export duty on steel products will lead to a new era of growth for the domestic steel industry which has gained footprint internationally,” Jyotiraditya Scindia, Steel

COP27: Breakthrough Agenda to work on nearzero emission steel

Representatives from countries who congregated in Egypt for the United Nations Framework Convention on Climate Change (UNFCCC), during the 27th Conference of Parties (COP27) launched a package of 25 new collaborative actions in five key areas: power, road transport, steel, hydrogen and agriculture.

The Breakthrough Agenda group of countries representing more than 50 percent of global GDP set out sector-specific ‘priority actions’ to decarbonise power, transport and steel, scale up low-emission hydrogen production and accelerate the shift to sustainable agriculture by COP28.

“These measures are designed to cut

energy costs, rapidly reduce emissions and boost food security for billions of people worldwide,” a release by Breakthrough Agenda said.

The actions under each breakthrough will be delivered through coalitions of committed countries – from the G7, European Commission, India, Egypt, Morocco and others, supported by leading international organizations and initiatives, and spearheaded by a core group of leading governments. These efforts will be reinforced with private finance and leading industry initiatives and further countries are encouraged to join.

The priority actions include agreements to:

♦ Develop common definitions for lowemission and near-zero emission steel,

hydrogen and sustainable batteries to help direct billions of pounds in investment, procurement and trade to ensure credibility and transparency

♦ Ramp up the deployment of essential infrastructure projects including at least 50 large scale net-zero emission industrial plants, at least 100 hydrogen valleys and a package of major cross-border power grid infrastructure projects

♦ Set a common target date to phase out polluting cars and vehicles, consistent with the Paris Agreement. Significant backing for the dates of 2040 globally and 2035 in leading markets will be

Steel Insights Bureau

“The heavy industries are responsible for a considerable share of the total carbon dioxide emissions in the world today. We need to recognise our obligation to work towards mitigation of climate changerelated risks and strive to reduce our carbon footprint,” T V Narendran, CEO & MD, Tata Steel and co-chair, Alliance for Industry Decarbonisation

UN Secretary-General António Guterres speaks at the COP27 with COP27 President, Sameh Shoukry, standing to his right.

Enabling policy support, infra needed for transition: ISA conclave

Steel sector should focus on climate change and its impact on the steel industry, T V Narendran, MD & CEO, Tata Steel, said at the 3rd Indian Steel Association (ISA) conference at New Delhi.

“We have to look into the choices of inputs and government policy and proper infrastructure is required for the transition,” he said.

Reduction of carbon emission is the need of the hour and use of new technologies like hydrogen and carbon capture should be adopted, SAIL Chairman Soma Mondal.

Generation of scrap for use and scrap availability is another area that needs to be looked into, she added.

“We are in the process of implementing a strong policy with the Ministry of Road Transport and Highways to realise the idea of a circular economy and make maximum use of scrap, which we have in abundance. We must pledge to reduce carbon emissions by 30-40 percent,” Steel Minister Jyotiraditya Scindia said.

As Indian steel sector faces unique challenges to decarbonise, government support and stakeholder readiness must go hand in hand, Hetal Gandhi, Lead, Energy Transition at CRISIL, said. According to her, the following are some of the challenges for decarbonising India’s steel sector: ♦ Low-cost competitiveness

Affordability and availability of technology

Garnering Investments

Scrap availability

Inclination towards BF-BoF and coalDRI ♦

Unavailability of high-quality iron ore

Stakeholder collaboration will drive the transition, said Surya Prakash Karri, Head, Public Spaces, Airports and Factories Design at L&T Constructions. “Steelmakers must involve concerned stakeholders and must have a trade-off between industry, end consumers and the environment,” he said.

Focus on consumption sectors

Stress on infrastructure sector is the primary

requirement for consumption led growth of the steel sector while steel consuming sectors like automobile, capital goods and consumer durables need to grow and proper mechanisms should be initiated for its growth, he said.

Narendran said removal of export duty on steel is a welcome step and it should be conscious effort to establish the Indian steel industry in the global arena.

SAIL Chairman Soma Mondal said steel has no replacement but the industry needs to be vigilant about the changing demand conditions. “The industry has to provide a sustainable, customised, just in time and value for money solution,” she said.

Commerce Minister Piyush Goyal noted that India’s per capita consumption of steel is much below the world average and urged the industry to aspire for at least 3X growth to reach the global average.

He said that the rising EV auto market coupled with increasing levels of prosperity will translate into potential business for the steel and aluminium industry. He urged the industry to kickstart the process of investment and aid in faster rollout of PLI in steel.

Steel Insights Bureau

Steel Minister Jyotiraditya Scindia and Commerce Minister Piyush Goyal speaking at the conclave.

Jindal to invest $3 bn in Oman green steel facility

in the presence of a number of high-ranking government and private sector officials.

The MoU was signed by Ahmed bin Hassan al Dheeb, deputy chairman of OPAZ, and Jindal Shadeed’s Harssha Shetty. The land reservation agreement was signed by the Jindal Shadeed and Reggy Vermeulen, chief executive officer of the Port of Duqm.

“This project would contribute to Port of Duqm’s vision to be a green port operating on renewable energy sources in line with the Oman’s vision 2040 to support economic divesification and reduce reliance on the oil and gas sector,” Dr Mete said.

Shetty of Jindal Shadeed added that this project will not only attract foreign investment but also provide work opportunities for local talent, and pave the path for enhancing the use of clean energy and green hydrogen in the Special Economic Zone.

Jindal Shadeed Group is investing more than $3 billion in the world’s largest Green Hydrogen-ready steel facility in Special Economic Zone at Duqm (Sezad), in Oman. The facility will produce 5 million tons tones of green steel annually and is designed to utilise renewable energy sources in its manufacturing operations.

“Our efforts in the Sultanate are in line with the priorities of Oman Vision 2040 to use alternative energy and sustainable natural resources. This grand project also serves the comprehensive national strategy which focuses on reducing emissions and achieving carbon neutrality,” Harssha Shetty, CEO of Jindal Shadeed Iron and Steel LLC, said.

Considered to be the largest planned plant of its kind within SEZAD to produce green steel, the facility will utilise renewable energy sources in its manufacturing operations.

“Jindal Shadeed is investing more than US$3bn to develop this mega steel project in Duqm. We have already obtained the necessary approvals to secure land for our green hydrogen ready steel project,” Harssha Shetty, CEO of Jindal Shadeed Group, said in a press statement released by SEZAD.

He said the company’s goal is to produce more than 5mn metric tonnes of green steel on an annual basis that will create over US$800mn annual in-country value addition. The project is being built on an area of approximately 2 sq. km. in the concession zone at the Port of Duqm.

The plant will supply high-quality steel to automobile, RE sector and consumer durables sector amongst others.

“The announcement comes in response to the demand for green steel from ESG conscious end-use sectors around the world especially in Europe and Asia, who have committed to significant emissions reductions by 2030,” Dr Gokce Mete, senior expert in heavy industry transition and lowcarbon hydrogen at South Pole and co-leads of the Hydrogen for Net Zero Initiative, said at a press conference marking the signing of land reservation agreement between the parties.

The project was announced at a ceremony that included the signing of a memorandum of understanding (MoU) and a land allocation agreement held under the auspices of H E Dr Ali bin Masoud al Sunaidy, Chairman of Public Authority for Special Economic Zones and Free Zones (OPAZ),

“The availability of solar energy and wind resources throughout the year is a great advantage for the project and is likely to attract investments in green industries and renewable energy projects in Oman in general, and Duqm in particular,” she added.

Jindal Shadeed currently runs a 2.4 million tons per annum integrated steel production facility in Oman with the lowest carbon footprint of 1.05 tons carbon per tons of steel vs global average of 1.82 tons.

Jindal Shadeed’s natural gas-powered Midrex-designed and equipped ‘Hotlink’ DRI plant (with world’s tallest DRI tower of 145 meters) feeding the plant is a unique design ensuring energy efficient and environment friendly operations.

“There is a booming demand for green steel from ESG (environmental, social and governance) conscious-customers around the world, especially in Europe and Asia, who have already committed significant reduction in Scope 3 emissions by 2030,” Shetty added.

Commenting on the agreements, Dheeb expressed his delight in partnering with Jindal Shadeed to develop its manufacturing facility in Duqm. He reaffirmed that a project of this caliber would be an added value to the heavy industries cluster in SEZAD and would play a vital role in the development of Duqm as a key industrial hub.

Steel Insights Bureau

Harssha Shetty, chief executive officer of Jindal Shadeed Iron and Steel LLC signs pact with authorities of Special Economic Zone at Duqm while Naveen Jindal, Chairman, JSPL, looks on.

Tata Steel sources green rebar mill from

Ludhiana plant

Tata Steel Ltd will have the maiden green steel endless casting-rolling plant powered by Digimelter and Octocaster made by Danieli to operate in India.

The Danieli MIDA Hybrid QLP minimill for the production of long products is part of the Tata Steel commitment to invest in a circular economy and to transition to low-carbon steelmaking through the steel recycling route, Danieli said.

“The new MIDA will be installed in the North of India, in Ludhiana, Punjab, and will have an annual capacity of 750,000 tons of rebar, mainly in 550 SD grade. And it will start operation by end 2024,” Danieli said.

The minimill will feature the Danielipatented Digimelter (Q-One + Zerobucket + Q-Melt suite) and Octocaster feeding an ultra-compact rolling mill.

Q-One power feeder handles irregular power loads with high flexibility and

reliability by using semiconductor devices. This results in lower energy, electrode and refractory consumption, along with zeroimpact on the power network. Hybrid by design, it allows the direct use of renewable sources generated at the site.

The 75-ton Zerobucket Digimelter will receive preheated scrap thorough the ECS continuous scrap-charging and preheating system.

Danieli Q-Melt advanced process control offers dynamic and automatic optimization of the melting profile.

Endless casting-rolling is powered by a single-strand Octocaster featuring ECOPowerMould and FastCast Cube oscillator, to operate at an hourly productivity of 112 tons, connected to the rolling mill for uninterrupted production.

The 18-stand ultra-compact rolling mill featuring two 6-pass, fast-finishing blocks will roll rebar ranging from 8 to 40 mm dia.

Danieli MIDA QLP minimill is the benchmark technology for commercial

production thanks to smooth and stable production, quick plant ramp-up and lowest operational costs.

Earlier in August, Tata Steel signed a Memorandum of Understanding (MoU) with the Government of Punjab for setting up a 0.75 million tons per annum (mtpa) long products steel plant with a scrap-based electric arc furnace (EAF).

The facility is coming up at Kadiana Khurd, Hitech Valley in Ludhiana.

It is a step aligned to the Company’s goal of achieving Net Zero carbon emissions by 2045.

The state-of-the art EAF-based steel plant would produce construction grade steel rebar under the Company’s flagship retail brand ‘Tata Tiscon’, which would enable Tata Steel to further augment its market presence in the construction segment.

“We remain committed to Net Zero by 2045, to pursue multiple pathways. In India the Kalinganagar phase 2 will help improve the energy balance and reduce our carbon footprint. Work has commenced at our new 0.75 mtpa EAF in Punjab, which will drive volumes as well as reduction in the emissions profile,” T V Narendran, CEO & MD, Tata Steel recently told analysts during a conference call.

Steel Insights Bureau

Danieli for

“The new MIDA will be installed in Ludhiana, Punjab and will have an annual capacity of 750,000 tons of rebar, mainly in 550 SD grade. And it will start operation by end 2024.” Danieli

Divest bids invited for NMDC Nagarnar plant

Department of Investment and Public Asset Management (DIPAM) has initiated the strategic disinvestment of NMDC Steel Ltd through the issue of Preliminary Information Memorandum.

The government has engaged SBI Capital Markets as the transaction advisor while J Sagar and Associates has been roped in as the legal advisors.

Government currently holds 60.79 percent of the total equity share capital of the company.

“GOI shall sell such number of shares representing 50.79 percent of the equity

share capital of NMDC Steel Ltd, along with transfer of management control in the company. The details about process of transaction and other relevant details are given in the Preliminary Information Memorandum (PIM) which has been published on December 1, 2022 for inviting Expression of Interest (EOI) from the bidders,” NMDC has said in a communication to the stock exchanges.

The last date for submission of EoIs is January 27, 2023.

Cabinet Committee on Economic Affairs (CCEA), in 2016, gave in-principle approval for strategic disinvestment of several CPSEs including the Nagarnar plant. Subsequently, in 2020, CCEA gave its in-principle

The government has engaged SBI Capital Markets as the transaction advisor while J Sagar and Associates has been roped in as the legal advisors to the process. Government currently holds 60.79 percent of the total equity share capital of the company.

Steel Insights Bureau

Plant location in Nagarnar, Chhattisgarh