India could finish up making 93-94 million tonne (MT) of completed steel in FY 2021, a 10% decline compared to final year’s production, Ranjan Bandopadhyay, executive secretary, joint plant committee, stated. At this level of completed steel production crude steel production could be crossing one hundred MT this fiscal but steel consumption would stay at 91 MT, he stated.
India’s consumption reached one hundred MT in FY20, developing at a CAGR of 5.2% involving FY16 and FY20. While Icra estimated that steel demand could contract 20% in FY21, Vinay Verma, managing director, mjunction, stated that steel production, demand and costs have observed important recovery as the sector got adapted to new typical in the wake of Covid.
Digitisation of steel sector would play a key part in demand forecasting and could also enable in providing essential insights that could allow strategy manufacturing with the demand in sight. As one hundred% asset utilisation was essential to production price optimisation, inventory optimisation was equally critical, Stayan Jha, assistant vice-president, sales & marketing and advertising, JSW steel, stated at an mjunction steel markets conference. Lower inventory, even though in the approach of production, was critical due to the fact it could effect EBITA by 2-4 %, Akshay Gujral, chief of sales,Arcelor Mittal and Nippon Steel, stated.
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Ajay Mishra, chief of marketing and advertising, industrial goods and projects, Tata Steel, was of the opinion that digital play has to go hand in hand with physical connectivity. Digital play could only be valuable for provide-chain management. There was no option to physical connectivity at the consumers’ point though demand forecasting, analytical forecasting, capacity forecasting and inventory buffers remained essential to digitisation.
Bhaskar Chatterjee, secretary common of the Indian Steel Association, stated, a pretty higher demand for worth-added steel nevertheless remains in India and production of such steel could lower import dependence. India is the world’s second biggest steel producer but the country’s dependence on imports of speciality steel such as electrical steel, automotive grade steel and steel for specialised use in defence space and nuclear applications is nevertheless pretty higher.
But specific choices have opened the floodgates for stainless steel material to come in from China and Indonesia posing a massive challenge to the Indian steel sector, Vijay Sharma, director, Jindal Steel, stated.
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According to the Indian Stainless Steel Development Association (ISSDA), India’s apex stainless steel body, if the government didn’t contemplate withdrawing its revocation of trade remedial duties on importing stainless steel, it would distort the marketplace with subsidised Chinese and Indonesian stainless major a number of MSME players to bankruptcy. China and Indonesia provide non-WTO-complaint subsidies to the tune of 20-30% to their domestic steel sector. The government’s reversal of six trade treatments of which 3 relate to stainless steel has disproportionately impacted the stainless steel sector mainly beneath the MSME category.
The MSME sector tends to make about 35% of the Indian domestic stainless steel sector with an installed capacity of 15 lakh tonne per annum. But significantly less then 50% of this capacity is becoming utilised due to the fact the marketplace is brimming with unregulated and low-priced imports of Chinese stainless steel goods, KK Pahuja, president, ISSDA, stated in a diverse statement.