Mittal Steel-The next big thing

Mittal Steel is eyeing to expand its production base and is planning to go upto 150 Million Tonnes by 2020.

The world’s biggest steel producer, feels that India is the biggest emerging market in future and the demand of steel will go up sustantially.

Presently with production of about 40 Million tonnes, there seems to be much scope in this field of business in the time to come.

Hardened tempered steel strip

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.

Weak dollars effecting steel exports

The initiative taken by RBI has kept the Rupee on hold to some extent, otherwise it would have crossed the 39/- per dollar barrier. Rupee is appreciating due to huge inflow of Dollars by the FII’s in the Indian Stock Market.Due to open market, it has totally become a simple statistics of demand and supply.

However, this is highly effecting the Indian Export Market. Already the Garment Manufacturers are feeling the punch. The steel industry is also facing similar kind of recession.Exports in steel is having a negative growth in the last 6 months. Compared to the first half of the previous fiscal year, the exports have have gone down by 8.5%

RBI is taking all the neccessary measures to control the rising rupee. But if the Rupee keeps appreciating in this similar fashion, it will soon become a boon to importers, whereas the fate of exporters will be in doldrums.