Steel price may increase furthur in November.

“Another round of increase is likely from November. It could be around Rs 500 a tonne,” said Bhushan Steel Managing Director Neeraj Singal. “The fall in raw material prices has not been able to offset the impact of rupee depreciation,” explained another industry representative.

At present, the gap between landed imports and domestic hot rolled coil (HRC), taken as the benchmark for flat steel products, is around Rs 2,500 a tonne. The HRC price in India is ruling at Rs 33,000 a tonne.

“This increase is entirely cost-push-driven. Producers are not going to let go of an opportunity to increase prices. But there is likely to be a margin squeeze,” a downstream Mumbai-based steel producer said. Though the demand in India is steady, the international market scenario is not good, and the industry is not expecting the crisis to be resolved in one year, which puts finished product prices in question.

Domestic steel demand is expected to be moderate over the next five years. In 2011-12, Crisil Research expects profitability to be impacted by rising input costs. Steel prices would increase on the back of input cost, but profitability is likely to decline across the steel industry.

Iron ore exports.

India must take a strategic view that it will be a major exporter of steel and not of iron ore. As India moves to reach its goal of producing 100 million tonnes of steel locally, the availability of high-grade ore to the local steel industry has to increase. Exports would then not a feasible option. It is also necessary to conserve high-grade iron ore which, is at present, being exported in substantial quantities. Various stakeholders should come together and agree to a larger national perspective in this area so that value-addition takes place in India and employment is also generated in the country.

Steel Price on the rise.

Despite sluggish growth in the industrial sector, the steel prices have gone up by 7-8% in the last 15 days. The main producers find it difficult to survive without price hike as the cost of all the major inputs like metcoke, iron-ore, etc. are at all time high.

But again, most of the stockyards are overflowing with material as there is no lifting due to indutrial slow down in ndia as well as the golbal economy meltdown.

Under these cicumstances, it is very difficult to assess the future prospect in the price of steel.

Hardened Tempered Steel Strip

Hardening and Tempering is a thermal process that strengthens steel through a controlled heating and cooling process.
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 temperature for the given grade and then rapidly cooling. Whilst this process achieves the highest mechanical stengths 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.
The exact temperature and processing times vary with given grades of steel and the process is very specialized.