Steel consumption to rise 9 pc in 2010

The Economic Survey today projected domestic steel consumption to grow in the range of 6-9 per cent in 2010 primarily on the back of improved demand from construction and automobile sectors.

“Indian steel outlook for 2010 continues to be positive, since Indian steel consumption is expected to be rising at 6-9 per cent during the current year, on account of higher demand from the real estate, construction and automobile sectors,” the Survey tabled in Parliament said.

However, the projected growth volume was not mentioned.

Steel consumption for April-January period has risen 7.9 per cent to 45.93 million tonne over the same period in 2008- 09, a fiscal which saw demand as well as prices of the commodity falling by more than 50 per cent in the second half.

SOURCE:http://www.ptinews.com/news

ArcelorMittal explores other Jharkhand sites for steel plant

Steel giant ArcelorMittal is looking for an alternative site in Jharkhand to set up a 12 million tonne greenfield plant after it faced difficulties in the earlier selected site straddling Khuti and Gumla districts, an official said on Monday.

The company representatives visited villages in Bokaro district Sunday and interacted with residents of Kasmar block, assuring them of good compensation if they agreed to be displaced for the plant.

“We are exploring various sites in Jharkhand to set up a greenfield steel plant. We are facing lots of difficulties in Torpa and Kamdara areas, earlier selected for the steel plant,” ArcelorMittal Jharkhand steel project general manager P.S. Prasad told IANS.

“We went to Bokaro at the invitation of the villagers and got a good response. We have informed the company about the positive response of the villagers,” he said.

ArcelorMittal signed an MoU with the state government in 2005 to set a steel plant with an investment of Rs.40,000 crore. The company has been allocated iron ore mines and coal block but is facing difficulties to get land in the area bordering Khuti and Gumla districts.

SOURCE:http://economictimes.indiatimes.com/news

Posco eyes Rs 10k cr plant with SAIL

Posco, the South Korean steel behemoth, has offered to set up a Rs 10,000-crore joint venture plant with Steel Authority of India Limited (SAIL) in the industrial town of Kulti, Burdwan, about 200 km from Kolkata. Land acquisition will not be an issue here, because the project will come up on the land of Growth Works, a SAIL-owned plant that is in the red.

Posco (Pohang Iron and Steel Company), which is locked in a long and bitter land dispute for its Rs 52,000-crore plant in Orissa, has recently got clearance from the Union environment ministry to acquire forest land for the Orissa project. Wiser by the five-year ordeal, it is looking for ‘clean’ land for its venture with SAIL. The Kulti Growth Works fits the bill. It would take only an agreement with SAIL to start the project.

Sources say Posco is keen on getting started early, possibly in the next six months.

On Monday, four top Posco officials, including two general managers, visited the Kulti plant, which belonged to the erstwhile IISCO and is now under SAIL’s growth division. Kulti Growth Works GM Probal Gupta showed them around. Sources said that the Posco officials are pleased with the land, especially since they won’t have to go through the political minefield of acquisition.

SAIL executive director (works) S Subhedar confirmed the Posco visit. “They will submit a detailed project report to SAIL. It was their maiden visit and the project is in a preliminary stage,” he said. Asansol MP and chairman of Asansol Dugrapur Development Authority (ADDA) Bansa Gopal Choudhury welcomed the development, saying the Posco plant would be a huge boost to Bengal’s investment scenario.

JSW Steel to start work on Bengal project in 6 months

JSW Steel, India’s No. 3 producer of the alloy, said on Monday that work on its West Bengal project will start in six months.

The company will invest 100-120 billion rupees in the first phase to set up a 3-million-tonne steel plant, Managing Director Sajjan Jindal told reporters.

It is expected to be completed within 30 months from the start of the project, Jindal added.

Eventually the steel-maker plans to set up a 10-million-tonne steel plant with an investment of 350 billion rupees in three phases, he said.

“Along with the steel plant, we will also start the first phase of the 1600 MW power plant project, which would take around 3 years to complete,” he said.

In the first phase, it will have a capacity 800 MW, with an investment of around 80-100 billion rupees, Jindal said.

Jindal, who was in Kolkata to meet the West Bengal chief minister, said the company was in “active” discussions with the Japanese firm JFE Corp, regarding investment in the Bengal steel plant.

SOURCE:http://sify.com

Japanese steel companies’ India plans

Japanese steelmakers appear to have taken an interesting approach to gain a foothold in India’s steel manufacturing sector. The likes of

Japan’s sixth-largest steel company JFE Steel and Sumitomo Metal Industries are negotiating with JSW Group and Bhushan Steel, respectively, for picking up equity stake of anywhere between 26% and 40% in new plants in India.

This move is distinctly different from ArcelorMittal’s strategy or that of Posco which had tried to set up projects on their own, but have made little headway, so far.

Interestingly, both the Japanese companies have chosen greenfield projects that are being set up by existing home grown steel companies. JSW Group, which had set up a steel plant at Vijaynagar in Karnataka in 1995, is now expanding capacity to 10 million tonne (mt) by March 2011. When completed, it will be one of the largest single site plants in the country, apart from the Tata Steel plant at Jamshepdur. Similarly, Bhushan Steel currently has a capacity to produce one million tonne a year and is set to start operations at a new plant in Orissa in January 2010. It will produce 2.5 million tonne of steel in a year

SOURCE:http://economictimes.indiatimes.com/

ABOUT TISCO

Tata Steel, formerly known as TISCO and Tata Iron and Steel Company Limited, is the world’s sixth largest steel company, with an annual crude steel capacity of 31 million tonnes. It is the largest private sector steel company in India in terms of domestic production. Ranked 258th on Fortune Global 500, it is based in Jamshedpur, Jharkhand, India. It is part of Tata Group of companies. Its main plant is located in Jamshedpur, Jharkhand, with its recent acquisitions, the company has become a multinational with operations in various countries. The Jamshedpur plant contains the DCS supplied by Honeywell.The registered office of Tata Steel is in Mumbai. The company was also recognized as the world’s best steel producer by World Steel Dynamics in 2005.Tata Steel annually produces 18 million tonnes of steel in India and 52.32 million tonnes overseas, making it the fifth largest steel producer in the world. It produced a record-breaking 10.32 million tonnes of salable steel in its Jamshedpur works in 2009-10.
Tata Steel has set an ambitious target to achieve a capacity of 100 million tonne by 2015. B Muthuraman stated that of the 100 million tonne, Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions.
Overseas acquisitions have already added up to 21.4 million tonne, which includes Corus production at 18.2 million tonne, Natsteel production at 2 million tonne and Millennium Steel production at 1.2 million tonne. Tata is looking to add another 29 million tonnes through the acquisition route.
Tata Steel has lined up a series of greenfield projects in India and outside which includes:
# 6 million tonne plant in Orissa (India)
# 12 million tonne in Jharkhand (India)
# 5 million tonne in Chhattisgarh (India)
# 3-million tonne plant in Iran
#.4-million tonne plant in Bangladesh
# million tonne capacity expansion at Jamshedpur (India)
#.5 million tonne plant in Vietnam (feasibility studies underway)

SOURCE:wikipedia

SAIL unit to resume production after fire

Steel Authority of India Ltd, the country’s largest domestic steel maker, said it would resume production on Tuesday at a fire-disrupted

“The production process is expected to gradually resume by the end of the day,” the Bhilai Steel Plant said in a statement. The plant, located in the central state of Chhattisgarh, is SAIL’s largest unit that produced 5 million tonnes of steel in 2008/09.

Production of hot metal in the plant was hit after a fire broke out in the cable tunnel of its power and blowing station, in the early hours of Monday.

“The furnaces will normalise gradually,” the company said. State-run SAIL aims to make 12 million tonnes of steel in 2009/10 that ends on March 31.

SOURCE:http://economictimes.indiatimes.com