Tata Steel UK to close pension scheme, to implement new scheme

 

Tata Steel UK has completed the consultation process to close its existing pension scheme for its workers from March 31, 2017. A new pension scheme will be implemented from April 1, 2017.

Tata Steel Ltd disclosed the development in a regulatory filing in BSE on Wednesday.

During the consultation process, the company spoke to more than 4,000 employees at more than 90 face-to-face briefings across the UK and also received feedback from trade unions.

According to the statement, after considering responses received and sharing the review with the trade unions, Tata Steel UK has informed its employees it it will close the British Steel Pension Scheme to future accrual.

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Today Centre to unveil new steel policy soon: Minister

 

The government will soon unveil a new steel policy to boost production and consumption of the commodity, Union Minister Chaudhary Birender Singh said according to the PTI report.

Addressing a regional seminar, the Steel Minister said the government would organise a national conference of steel producers and consumers.

This conference would discuss the issues related to the sector, including quality, price and problems faced by stakeholders, he said.

The government has decided to increase the production of steel to 300 million tonnes by 2030 from the present level of 126 million tonnes.

He added that the government plans to double the country's per capita steel consumption of 61 kg, which is a big challenge. The global per capita steel consumption stands at 208 kg.

The minister also asked the industrialists to change their mindset and adopt modern technologies instead of sticking to traditional forms of production.

The new steel policy would bring about a balance between production and consumption in the country, he added.

 

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Arcelor Mittal plans solar farm on steel plant land in Karnataka

 

ArcelorMittal may set up a solar farm on land alloted to it for the proposed 6 MT Karnataka project in view of excess global steel capacity and delays in securing raw materials, reported PTI.

The company had entered into a pact with Karnataka government for setting up a 6 million tonnes (MT) steel plant with a captive 750 MW power plant at an estimated investment of USD 6.5 billion.

"In view of excess capacity of steel world-wide and uncertainty in iron ore availability locally, the company is also exploring the possibility of utilizing the land in Karnataka for the establishment of a solar farm for generating solar energy," the global steel giant has said in its latest report.

ArcelorMittal India has received possession certificates for 2,659 acres of private land following the acquisition of 1,827 acres and 832 acres in December 2011 and October 2012, respectively, it said.

A balance of 136.33 acres owned by the Karnataka government is being processed for allocation, it said.

Setting up of the solar park will contribute to the mitigation of Karnataka's power crisis and participation in the National Solar Energy mission of the government of India.

"In this regard, the company has sought the state government's permission to set up a solar farm of up to 600 MW.

"The state government is considering ArcelorMittal's proposal and the company is hopeful of receiving a favorable response to the proposal," it said.

The NRI billionaire Lakshmi Mittal-led company in June 2010 had signed an MoU with the Karnataka government to set up a 6 MTPA greenfield project at Kuditini in Bellary, Karnataka.

After failing for over a decade to set up plants at Odisha and Jharkhand, ArcelorMittal had signed the pact with Karnataka government for the plant but the same is yet to take off.

While the company is facing raw material security issues in Karnataka, the projects in Jharkhand and Odisha 

Govt extends anti-dumping duty on steel products.

The Indian Government has said that India has extended by two months the anti-dumping duty on certain cold-rolled flat steel products from four nations including China and South Korea to guard domestic industry from cheap imports.

As per reports, the anti-dumping duty to be paid is the difference between the landed value of the steel products and USD 594 per tonne. The duty was earlier imposed on August 17, 2016, for six months on cold-rolled flat products of alloy or non-alloy steel from China, Japan, South Korea and Ukraine.

As per reports, the Central Board of Excise and Customs (CBEC) amended the August 17 notification to extend the levy of duty by two months from the present six months. The anti-dumping duty was imposed on recommendation of the Directorate General of Anti Dumping (DGAD), an arm of Commerce Ministry.

 

Read more - Steel Updates.

Business environment challenging for steel sector:

 

Country's largest steel maker SAIL has said that with the business environment becoming extremely challenging for the steel sector, it has identified five core areas, including optimisation of new assets utilisation, to turn impending challenges into opportunities.

Commenting on the issue, a Steel Authority of India Ltd (SAIL) Official told the media, "At this crucial juncture for steel industry across the world, SAIL management realises that business environment has become extremely challenging. Thus the company, in a recent meeting of top management, devised appropriate responses for the impending challenges to turn them into opportunities."

As per reports, five core areas were identified including, ensuring quality and cost effective input, achieving production excellence, optimising new assets utilisation and leveraging human capital. SAIL is focusing on developing high-impact leadership amongst its ranks for which it is sensitising talented young executives to drive the top management's agenda of 'change' and for transforming the PSU into a vibrant organisation.

Govt may impose anti-dumping duty on 19 steel products

 

The Indian Government has said that it may soon impose anti-dumping duty on 19 colour-coated steel products with a view to protect domestic players from cheap inbound shipments and give a fillip to the sector.

As per reports, currently, the Government has imposed minimum import price (MIP) on these 19 products, which are mainly colour-coated steel items, till February 4.

Commenting on the issue, Steel Secretary Aruna Sharma told the media, "The MIP was on 173 items. We have brought it down to 19. Rest of them, we have converted into anti-dumping. Anti-dumping will continue as the evidences are there."

“Anti-dumping investigation is already in the process on these 19 products. These 19 should not circumvent with it therefore we have put it (MIP) at this stage. On that also, we will move on to the anti-dumping route. Before February it should happen," she added.

As per reports, the 19 products include semi-finished products of iron or non-alloyed steel, flat-rolled products of different widths, bars and rods. For the first time, MIP was imposed in February last year on 173 items. But, later on the number of products were reduced.

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Steel ministry asks Govt to lower import taxes on raw materials

A Government Official has said that steel ministry wants lower import taxes on a number of key steel making raw materials, including nickel, to protect the domestic industry from the rising costs of basic resources.

As per reports, Finance Minister Arun Jaitley could announce some of these measures when he presents his annual budget for the 2017/18 fiscal year on Feb. 1.

Commenting on the issue, a Government Official told the media, “The finance ministry could even scrap the current 5 percent import duty on nickel, largely used in stainless steel production. Nickel is not present in India at all, so our argument is there is no point in having the customs import duty on it. There is a case to do away with it."

“The ministry has also sounded out the government about lower dividend payouts by state-owned companies, including Steel Authority of India Ltd (SAIL), the biggest steel producer, due to their poor financial health,” Sharma said.

 

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Steel MIP Extended By Goverment on 19 Products For 2 month

In order to protect domestic steel industry from below-cost imports, The Indian Government has said that it has extended further the minimum import price (MIP) on 19 products for two months, till February 4, in order to protect domestic steel industry from below-cost imports.

Commenting on the issue, the Directorate General of Foreign Trade told the media, "The Central Government hereby extends the applicability of MIP beyond 04/12/2016...for further two months, i.e., till 4th February, 2017."

The MIP ranges between $ 643-752 per tonne. The 19 products include semi-finished products of iron or non-alloyed steel, flat-rolled products of different widths, bars and rods.

As per reports, to guard domestic steel producers against in-bound shipments that are sold at below-cost rate, the government in February had imposed MIP, ranging between USD 341 to USD 752 per tonne, on 173 steel products for six months.

As per reports, the Government in August decided to extend the minimum import price (MIP) on 66 steel products for a period of two months as against 173 items earlier. This was further extended for two months in October, till today.

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Fall in steel demand is a temporary phenomenon: Tata Steel

Tata Steel said the recent fall in steel demand following demonetisation of high-value currency notes is a temporary phenomenon, and is expected to become normal in next two quarters, reported PTI.

"The recent fall in steel demand post-demonetisation is a temporary phenomenon and is expected to become normal in next two quarters. It is a postponement of demand rather than vanishing of demand," Tata Steel MD T V Narendran told reporters on the sidelines of CII event.

"The demonetisation move is good for the government and good for the country," he said.

Narendran added that in the long run the demand in parallel economy will flow back into the mainstream, benefiting organised steel producing companies.

The industry expects that the steel demand will be 5-6 per cent higher, while production will be 8-10 per cent as imports have come down, Narendran said.

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Govt to Impose Anti-dumping duty on Chinese steel products

 

The Indian Government has said that it has imposed antidumping duty on imports of steel wire rods from China to protect domestic manufacturers from cheap in-bound shipments.

As per reports, the Department of Revenue in a notification on Wednesday said anti-dumping duty is being imposed for six months on import of wire road of alloy or non-alloy steel from China.

As per reports, the measure follows recommendation by the Directorate General of Anti-Dumping and Allied Duties (DGAD) that steel wire road was being exported by China below the normal value and the domestic industry has suffered material injury because of such imports.

According to a Government notification, “The anti-dumping duty imposed under this notification shall be effective for a period not exceeding six months (unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette and shall be paid in Indian currency.

 

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Govt to impose anti-dumping duty on certain steel products

 

The Indian Government has said that it may impose anti-dumping duty on imports of certain flat steel products from China and European Union to protect the interest of domestic players from cheap in-bound shipments.

In its preliminary findings, the directorate general of antidumping and allied duties (DGAD) has recommended the duty on imports of colour coated / pre-painted flat products of alloy or non-alloy steel.

As per reports, Essar Steel India and JSW Steel Coated Products had jointly filed the application for initiation of anti- dumping investigations. DGAD has suggested the duty be the difference between the landed value of steel products and USD 849 per tonne.

As per reports, these steel products offer resistance to corrosion with barrier protection. It is used in many applications and sectors including construction, roofing, walling, paneling, cladding and decking, automotive, white goods, appliances and furniture.

 

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Steel Ministry to provide low cost affordable homes

 

Union Steel Minister Chaudhary Birender Singh has said that the steel ministry will promote recycling of scraps to increase in-house production and also provide affordable homes made of steel, which are cost effective and more durable.

Commenting on the issue, Union Steel Minister Chaudhary Birender Singh told the media, "We want to increase steel consumption in the country and prepared prototypes of affordable house for Rural Development Ministry where 5 crore affordable houses will be built in coming five years."

“The new scheme of PM Awas Yojana has endorsed Rs 2.20 lakh for a beneficiary. The ministry has prepared prototypes of steel which costs less than Rs two lakh a unit and three times more durable than the present structure,” he added.

Emphasizing that the industry needs to promote use of steel in new and innovative ways, the minister said whether it be steel bridges, steel buildings or its related products in making roads in rural areas, steel can be used productively. 

 

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Steel Updates - Govt unlikely to extend MIP on steel products

The Indian Government has said that it is unlikely to further extend the minimum import price(MIP) on certain steel products beyond October 4 as these items could be covered under anti-dumping duty.

As per reports, by the next month, the commerce ministry will complete the anti-dumping investigations on the 66 steel products on which MIP has been imposed and extended till October 4.

Commenting on the issue, a Government Official told the media, "Anti-dumping duties would cover those 66 items. After imposition of the anti-dumping duty, MIP is likely to be removed as MIP is a temporary measure."

As per reports, the commerce ministry believes that WTO-compliant measures like anti-dumping duty should be used to overcome the issue of cheap imports of commodities like steel. Last month, the government extended the MIP on only 66 steel products for two months as against 173 items earlier.

As per reports, the 66 products include semi-finished ones of iron or non-alloyed steel, flat-rolled products of different widths, bars and rods.

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Industry Advises Govt to relook Stainless Steel (QC) Order

 

Major metals and stainless steel industries associations, have said that they have urged the Steel Ministry to have a relook at the Stainless Steel products Quality Control (QC) Order, 2016.

As per reports, Industry bodies, Process Plant & Machinery Association of India (PPMAI) and the Metal and Stainless Steel Merchants Association (MASSMA) have said that the order do not cover over 60 per cent of most of the non-standard grades of stainless steel being produced and imported in the country.

As per reports, the Stainless Steel Products QC Order makes it mandatory to register with the Bureau of Indian Standards (BIS) and prohibits manufacture, import, storage, sale and distribution of stainless steel products by trade and industry without such registration.

Commenting on the issue, an industry official told the media, "More than 60 per cent of stainless steel produced in the country includes non-standard flat products not conforming to American Standards for Testing of Materials (ASTM) or any other international standard or local BIS standard."

“Though the order seeks to ensure that the domestic and industrial users get quality products, however, over 60 per cent stainless steel (of 200 series with below 1 per cent Nickel) is used mostly by utensil makers, which is not covered under the QC Order or under IS Standards of BIS,” he added.

According To BMI Steel Output to grow 7.3% annually

 

A Report by BMI has said that steel production in India, the world's third largest producer, is expected to grow annually at an average of 7.3 per cent during 2016 to 2020, and touch 127.1 million tonnes (MT).

The growth will be driven by state-run giant SAIL and Tata Steel, the firm part of the Fitch Group said.

Commenting on the issue, a BMI Official told the media, "India will be the global steel production growth bright spot as demand from construction, auto and infrastructure industries continue to accelerate."

“Besides, government has been spearheading the push towards the boost in steel production capacity, with upgrades being made to existing steel mills and state-owned companies stepping in to build new steel plants,” he added.

The report further added that the global steel market will see a surplus of 5.2 MT in 2016, a decrease from a 2015 surplus of 13.8 MT. From 2018 onwards, the global market will tighten, with the surplus decreasing to 1 MT in 2017, shifting into deficit thereafter. 

 

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Govt’s Anti-Dumping Duty Pproposal to help Domestic Steel Firms

 

Ratings agency S&P has said that Government's proposed anti-dumping duty will support profitability of large domestic steel producers.

Commenting on the issue, S&P Official told the media, "The duty will support the profitability of large domestic steel producers that have a greater proportion of hot-rolled flat steel products."

"Combined with improving domestic demand, India's protection measures could support the average realisation and profitability of domestic steel producers,"

As per reports, the duty will most likely to replace the Minimum Import Price (MIP), which had been introduced in February this year and ends this month.

As per reports, JSW Steel and Tata Steel will benefit the most as they have high portion of hot-rolled flat steel in their product mix at up to 60 per cent and 40 per cent, respectively.

The Government is mulling to impose an anti-dumping duty on imports of hot-rolled flat products of alloy and non-alloy steel from six countries, including China, Japan, and Korea, 

 

Read More - Steel Updates 

WSA Report - India Among Top 10 Importers of steel last year.

 

Global industry body, World Steel Association (WSA) has said that India, the world's third largest steel producer, was among the top 10 importers of the alloy last year.

 

As per reports, India imported 13.3 million tonnes (MT) of the metal in 2015 and was just a notch up from China, which imported 13.2 MT of steel during the same period.

According to Indian government data, steel imports rose by 25.6 per cent to 11.71 MT during the 2015-16 financial year against 9.32 MT in the year-ago period. India was a net importer of the metal in the last fiscal.

As per reports, WSA data also showed that India exported 7.6 MT of steel in 2015, which was just a fraction of what its neighbour China exported during the same period at 111.6 MT.

On the positive side, WSA forecasted that India's steel demand is expected to grow by 5.4 per cent to 83.8 MT in 2016 on the back of low oil prices and reform momentum. 

 

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Steel Imports to go Down Significantly in FY17: ICRA

Rating agency ICRA has said that Indian steel imports will go down substantially in FY17 on the back of imposition of minimum import price (MIP) while domestic steel prices are likely to increase by Rs 2,700-3,400 per tonne in the coming months. Commenting on the issue, an ICRA Official told the media, "With the MIP covering almost the entire spectrum of steel products, which accounted for 87 per cent and 98 per cent of India's total steel imports in FY15 and April-November of FY16, its impact on curbing imports is likely to be more effective than import duty hikes or SGD." “The MIP regime is expected to improve the margins and capacity utilisations of stronger domestic steel players,” he added.
 

As per reports, the Government notified imposition of MIP on February 5 on 173 categories of flat and long steel products for a period of 6 months.
 

Before this, the Government had levied safeguard duty (SGD) of 20 per cent on hot-rolled coils (HRC) of width greater than 600 mm in September 2015, and hiked import duty on steel twice by 2.5 percentage points each in June and August 2015.

Steel Sector Needs financial Support from Govt : ICC

Steel Sector - Industry body Indian Chamber of Commerce (ICC) has said that faced with a difficult business environment in global as well as domestic market, including cheap imports, the steel sector has sought a financial package from the Government. As per reports, the steel sector is passing through a difficult phase due to factors such as unavailability of key steelmaking raw materials like ore in the absence of grant of leases and cancellation of coal blocks. Commenting on the issue, ICC Director General Rajeev Singh said, "Due to FTAs with Japan & Korea, steel is being imported at import duty of below 2.5 per cent which does not even take care of the higher interest costs and logistics costs including infrastructure bottlenecks." “Under the circumstances the margins of steel companies are not sufficient to service interest cost and loan repayment as they are running at low capacity,”