Steel

plant industries

Presented by :-Bharat (ME-4)

Submitted to:- Mr. P.K. Soni

 Contents
• Introduction
• Industry overview
• History of steel industry
• Major players
• Global Economic Development
• Global Steel Development
• Indian Steel Industries
Introduction
• Steel has had a major impact on our lives, the cars
we drive, the buildings we live and work in and
countless other places. Steel is by far the most
important, multi-functional and most adaptable of
materials. The backbone of developed economies
was laid on the strength of steel. Steel industry is
very cyclic and is impacted by economic policies.
It has a direct impact on GDP of our country. The
global steel industry is in the grip of mergers
spree.
INDUSTRY OVERVIEW
• Steel is crucial to the development of any modern
economy and is considered to be the backbone of human
civilization
• India’s economic growth is contingent upon the growth
of the Indian steel industry. Consumption of steel is
taken to be an indicator of economic development.
While steel continues to have a stronghold in traditional
sectors such as construction, housing and ground
transportation, special steels are increasingly being used
in engineering industries such as power generation,
petrochemicals and fertilizers.
HISTORY OF STEEL INDUSTRY
The Indian steel industry – backbone of the Indian economy:

The Indian Steel Industry is almost 100 years old now. Till
1990, the Indian steel industry operated under a regulated
environment with insulated markets and large-scale
capacities reserved for the public sector.
Production and prices were determined and regulated by
the government and SAIL and Tata steel were the main
producers.
The first integrated steel plant was set up
in 1907 in Jamshedpur by TISCO. The years
between 1997 and 2001 saw a downturn in the global steel
industry due to demand-supply mismatch, unremunerative
prices and erosion of bottom lines. The industry recovered
• India occupies a central position on the global steel map,
with the establishment of new state-of-the-art steel mills,
acquisition of global scale capacities by players,
continuous modernization and up gradation of older
plants, improving energy efficiency and backward
integration into global raw material sources.
• India is currently the world's fourth largest producer of
crude steel (knocking to be the third largest by the year
end) and is expected to become the second largest
producer by 2020. The steel sector contributes nearly 2%
of the country’s GDP and employs over 6 lakh people.
Global Scenario
In 1913, production of stainless steel in the world
was only a few tons. It reached 0.6 MT in 1938
and increased to about 2.5MT in 1963. It crossed
the 10MT mark in 1986 .  
China is presently the world’s largest
producer and consumer of steel.
TOTAL WORLD PRODUCTION = 1132.8 MT
MAJOR PLAYERS

The major steel producing companies in

India with capacities of over one MT and
known as Integrated Steel Produces(ISPs)
are the following companies:
Revenue
(Rs in Crores) Production
Industries FY06-07 (Tonnes) Location

Steel Authority of India Bhilai, Rourkela, Durgapur, IISCO,

Limited (SAIL) 39,189 12.6 Bokaro, Salem,
` 27,437 5 Jamshedpur
Jindal Steel (JSW) 9337 4 Tarapur, Bellary

Rashtriya Ispat Nigam Ltd

(Vizag steel) 9151 3.6 Visakhapatnam
Essar Steel 9002 4 Hazira Steel Complex
GLOBAL ECONOMIC
DEVELOPMENTS
 In %Forecasts 2019 - 23
Country-wise Growth 2019 2020 2021 2022 2023
India Real GDP Growth 7.4 7.2 7.5 7.4 7.1

Inflation 3.3 3.2 3.9 4.4 4.1

China Real GDP Growth 6.3 6.1 5.6 5.3 5.0

Inflation 2.6 2.5 2.6 2.8 2.7

U.S.A Real GDP Growth 2.2 1.7 1.7 2.0 1.8

Inflation 2.2 1.4 2.2 2.1 2.1

Japan Real GDP Growth 1.0 0.4 1.1 1.1 1.0

Inflation 1.5 1.7 1.0 1.2 1.4

EU 28 Real GDP Growth 1.4 1.5 1.8 1.9 1.8

Industrial Output in (USD B illion DOLLARS)
Global Steel Demand
• The World Steel Association (world steel)
forecasts global steel demand reach
1,735 Mt in 2019, an increase of 1.3%
over 2018. In 2020, demand grow by
1.0% to reach 1,752 Mt.
• In 2018, global steel demand increased by
2.1%, growing slightly slower than in
2017. In 2019 and 2020 growth is
continued, but in a less favourable
economic environment
 Region Wise Steel Demand

• Steel demand in the developed economies grew by 1.8% in 2018

following a resilient 3.1% growth in 2017. Further decelerate to 0.3%
in 2019 and 0.7% in 2020, reflecting a deteriorating trade
environment.
Indian Steel industry
• Since the first Steel production started in India at
TISCO in 1907, India has travelled a long way to
become the world’s second largest crude Steel
producer with a production of 111 million tonnes
accounting for 5.9% of global production and 3.1%
of global exports4. The sector has largely been
dominated by private players contributing 81% of
the crude Steel production and rest by government
owned enterprises. The sector currently accounts
for more than 2% of the country’s GDP and
employs half a million people directly and about 2
million indirectly.
Steel consumption

Sector-wise steel consumption

6% 5% Construction and infrastructure
3% Capital Goods
9% Automobile
15% 62% Intermediate Products
Consumer durables
Railways
Source: Market Economics via Factiva Research
Impact of COVID disruption and path to recovery
TREND IN STEEL EXPORT AND IMPORT IN MILLION TONS
Trend in Indian Steel Export and Import(MT)
• Total finished steel exports stood at 6.36 Mt in
2018-19 and declined by 33.9% over 2017- 18 while
imports stood at 7.83mt and increased by 4.7% in
2018-19 over 2017-18.
• Such trends implied that India emerged as a net
importer of total finished steel in 2018-19 in
contrast to its net exporter status of 2017-18.
• Korean imports (2.94 Mt) had the largest share
(37%) in major flat items, making it the largest
import market for India during this period.
• China (imports down by 19%) was the 2nd largest
import market, with its share in overall total
falling from 26% in 2017-18 to 20% in 2018-19.
• Import of total finished steel valued at Rs. 49317
crore in 2018-19.
• Nepal (13% share) was the largest export market
for India during this period.
• Exports of total finished steel valued at Rs.
33153 crore in 2018-19
Route Wise Steel Production in India
Route Wise Steel Production in India
• Total Steel Production in India in 2018-19 was 106 Million
ton.
• Oxygen Furnace contributed 47 % in Production in 2018-
19 which was 46 % in 2017-18.
• Share of Electric Arc Furnace (EAF) route was 26 % in 2018-
19 which was similar in 2017-18.
• Share of Induction Furnace was 27% in 2018-19 which was
28 % in 2017-18.
• Public Sector unit (SAIL and RINL) produced around 21 MT
in 2018-19 and shared around 20 % in total Steel
production of India
BY 2030
• Indian population is expected to be 1.5 billions.
• At the present rate of annual growth of 1.5% and
the growth of steel at 8%, it is expected that the
per capita consumption of steel will grow by 5.3%.
• If the present per capita steel consumption in
India is 50 Kgs, then at 5.3% growth, by 2030,
per capita consumption will be no more than 120
kgs, maximum 150 kgs.
• Annual demand for steel will be 225 million tones
of steel leaving 100 million tones each year as
surplus.
 Major constraints in the path of expansion

• Lack of mineral resources like iron and coal.

• Limited supply of natural resources like water and
land.
• Pollution impacts on air and water
• Poor skills.
 CONCLUSION

Steel industry is one of the basic industries which have a

huge impact on the country’s economy, as seen in the steps
taken by government such as liberalization and national
steel policy to encourage growth.
Hence the growth in this industry has been impressive over
the past decade with Indian companies becoming global
players and
India becoming net exporter of steel with Indian exports
growing by over 33%. In spite of this Indian share in
consumption and world steel trade is still miniscule.
References
• Indian Steel Association Report
• Future Imperfect- Trends Driving The Indian Steel
Industry Towards 2030 –by Sushmita Dasgupta ECONOMIC
RESEARCH UNIT
• Wikipedia articles on steel industries
• Reports on steel industries from google webpages