BT Steel Strips Blog

NEW DELHI: The steel industry has finally got what it has been waiting for a long time. The government on Friday notified withdrawal of recently imposed export cess on a host of steel items as was agreed earlier during a meeting of steel producers with the Prime Minister.

It went a step further by imposing a uniform 15% ad valorem export duty (duty based on value of a product) on iron ore under an additional resource mobilisation programme (ARM). The new duty structure would be implemented with immediate effect.

As per the notification, the government has withdrawn 5-15% export cess imposed on variety of steel products including hot and cold rolled coils, steel pipes and tubes and galvanised sheets. It has, however, increased export cess on long steel products such as bars and rods; angles, shapes and sections and wire from present 10% to 15% to improve their availability in the domestic market. Rising price of long products has directly impacted consumers with higher cost of construction.

It is understood that 15% export cess on pig iron has also been maintained at the same level to discourage its exports and make available the material for value addition by domestic companies.

However, the levy of 15% ad valorem duty on iron ore is significant as it has been uniformly across all categories of ore irrespective of iron content. This likely to swell government’s resources substantially as country exports roughly 100 million tonne of ore annually mainly to spot markets in China where prices have been spiralling.

Government sources said net impact of export cess withdrawal and imposition of price linked duty on ore would be a gain of Rs 2000 crore for the exchequer.

The duty changes were earlier approved by a Committee of Secretaries (CoS). The CoS was asked to arrive at solution to check the rising price of steel through a mix of fiscal and administrative measures. The proposal to levy export cess on iron ore, however, divided inter-ministerial consultation earlier with mining and commerce ministries opposing the levy while steel and finance supporting.

The cess on iron ore is a expected to act as a big disincentive for exporters of ore (mainly mining companies). “There’s no shortage of iron ore in the domestic market currently. The government’s move would only have an adverse impact on the exports of iron ore as freight and other transportation costs are already very high. The decision would also aggravate the trade deficit between India and China,” Federation of Indian Mineral Industries (FIMI) secretary general R K Sharma said.

At present export duty on a fixed rate of Rs 300 per tonne is imposed on ore with 62% of higher iron content and Rs 50 on lower grade ore.

Finance minister P Chidambaram had announced imposition of 15% export duty on hot rolled steel products, 10% on cold rolled steel products, pipes and tubes and 5% on galvanised sheets to disincentivise exports and contain the domestic demand-supply gap. The steel ministry, however, favoured its withdrawal. Steel prices have risen by about over 60% in last one year.

Essar Steel Holding CEO J Mehra, “We appreciate the government’s decision to roll back export duty on steel products as it was required to maintain long term commitments to export value added items to overseas buyers. The move will provide free market access to the industry without affecting the domestic market.”

While steel firms are maintaining a voluntary moratorium on prices, the new measures are aimed at bringing stability for a longer period.

14 Jun, 2008, 0015 hrs IST, ET Bureau

New Delhi, May 23: India’s steel minister, Ram Vilas Paswan, said on Friday he has urged the finance ministry to roll back an export tax recently imposed on steel products.

“Steel producers have demanded roll back of export duty and we have forwarded the request to the finance ministry,” Paswan said.

Earlier this month, the government persuaded steel makers to roll back price hikes. It had earlier imposed an export duty ranging from 5 to 15 percent, as part of efforts to boost supplies and tame inflation ruling at 3-½ year highs.

Reuters
Posted online: Friday , May 23, 2008 at 1153 hrs IST

Blast furnaces have been used for two millennia to produce pig iron, a crucial step in the steel production process, from iron ore by combining fuel, charcoal, and air. Modern methods use coke instead of charcoal, which has proven to be a great deal more efficient and is credited with contributing to the British Industrial Revolution. Once the iron is refined, converters are used to create steel from the iron. During the late 19th and early 20th century there were many widely used methods such as the Bessemer process and the Siemens-Martin process. However, basic oxygen steelmaking, in which pure oxygen is fed to the furnace to limit impurities, has generally replaced these older systems. Electric arc furnaces are a common method of reprocessing scrap metal to create new steel. They can also be used for converting pig iron to steel, but they use a great deal of electricity (about 440 kWh per metric ton), and are thus generally only economical when there is a plentiful supply of cheap electricity

                                                                                            SOURCE: Wikipedia

Hardening and Tempering is a thermal process that strengthens steel through a controlled heating and cooling process Hardened and tempered steel strip, is used in many applications including saws, cutting tools as well as springs. This process will result in improved mechanical properties and give a tougher more durable product. The hardening process involves heating the steel to above the critical transformation temperature for the given grade and then rapidly cooling. Whilst this process achieves the highest mechanical strengths and hardness’s, steel in this condition is extremely brittle and therefore requires further treatment in the form of tempering. This consists of reheating the steel to a lower temperature and holding the steel at the given temperature for a given period of time. As with traditional annealing (used to soften steels) this process is conducted in an inert atmosphere to avoid oxidation.

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Bend Saw Blades

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Cross Cut Saws,Pit saws,Web saws,Bow saws,Pruning Saws,Hand Saws,etc.

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The price increase in the steel sector has seen a massive surge in the month of January and February. An accumulated increase of 3500/- per mt in the last two months, has reversed the trend of the market. This will, however, have an adverse effect on the auto industry which is already facing a sluggish period due to higher interest rates.

 Stelco, Canada’s last domestically owned steel maker, said Friday that it was in early talks that might lead to its sale.While foreign buyers have gradually taken control of Canada’s other steel companies, including Dofasco, Stelco remains independent, largely because it is unprofitable and some of its plants are outdated. Stelco emerged from a prolonged period of bankruptcy restructuring in March 2006 burdened with debt and pension obligations.

Stelco’s most attractive operation is its Lake Erie mill at Nanticoke, Ontario, which completed a renovation and expansion late last year at a cost of 270 million Canadian dollars ($252 million). While Mr. Mott has been working to reduce costs, the company’s much older traditional base of operations at its headquarters in Hamilton, Ontario, is unprofitable.

Over all, Stelco reported a net loss of 39 million Canadian dollars in the first quarter of this year and a net loss of 145 million Canadian dollars in the preceding quarter.

As part of its restructuring, Stelco agreed to make up, over 10 years, a pension shortfall of 675 million Canadian dollars. The company is also carrying about 738 million Canadian dollars in debt.

The company has long had a strained relationship with the United Steelworkers union. That situation has only been made worse by recent job reductions in Hamilton.

Stelco declined to comment beyond its statement, which did not identify the potential buyers. But the trend toward steel industry consolidation suggests that any new owner will not be Canadian.

Severstal of Russia, which owns a former Ford steel mill in Dearborn, Mich., tried to acquire Stelco during its restructuring.

Brookfield Asset Management of Toronto is Stelco’s largest shareholder, with about 36 percent of its stock. It did not respond to requests for comment

          Source : http://www.nytimes.com/2007/06/02/business/worldbusiness/02steel.html?_r=1&partner=rssnyt&emc=rss&oref=slogin

The Rupees One Lakh Car of Tata Motors- a new year gift to Kolkata.

This project will see the musrooming of auto ancilliaries in Kolkata. The eastern region was lagging far behind in this segment and was not getting the feel of the auto boom in the Indian Market.  With the plant of TELCO, lots of auto ancilliaries will come up in and around Kolkata. Presently, 85% of these ancilliaries are situated in North and South India. Kolkata was having a very few units, which can be counted on fingers. Now the market of this region will get a massive boost and the overall economy will grow.

Being a trader of Steel Strips, I feel that the demand of Steel Strips, which is highly consumed for making auto componants, will show a rapid growth in future. 

The hulking steel plant tucked in the northeastern corner of the state never has been much to look at. Monday, it started looking a whole lot better to some people.

In fact, Claymont Steel has become alluring enough to attract a suitor all the way from Russia.

If all goes as expected, the 87-year-old mill will be bought for $564.8 million by coal and steelmaker Evraz Group SA, which began its push into the United States last year with the $2.3 billion purchase of Oregon Steel Mills.

Claymont Steel’s board of directors unanimously recommended that shareholders accept Evraz’s offer. H.I.G. Capital, the private investment firm that bought Claymont Steel’s predecessor in 2005 and now owns about 42.6 percent of its common stock, has committed to tender its shares.

“The price is a good one,” analysts at Aton Capital, including Dmitry Kolomytsyn, wrote in a research report Monday. “Evraz Group has a history of successful and value-accretive acquisitions. The latest purchase will be just as successful.”

Claymont Steel executives could not be reached for comment Monday.

Read the full story at delawareonline

A Happy New Year to all our visitors, from Bijoy Trading Company.

We wish you a prosperous 2008.

For all your Steel Strip requirements, visit us at www.btstrips.com