Steel 360 Magazine - November 2015

In this issue

China’s steel demand growth turned negative for the first time in 2014 and experts believe the trend may continue for a while. Over half of China’s steel demand is driven by infrastructure and construction, so when the development slows down, the other markets such as automotive & white goods cannot fill the demand gap. As a result of contraction and government’s efforts to curb pollution and tackle industry overcapacity, China has been closing down steel units. However, with the nation now exporting more than ever, European & UK steel plants are forced to shut shops.

A Taipei Times article read - The UK’s steel industry has been in decline for decades. Companies that held out are now under more pressure from record Chinese exports, a stronger pound and weaker demand.

CEO of Tata Steel’s European operations laments - Inaction threatens the future of the entire European steel industry.

The world’s focus has now shifted to India with government’s ambitious plans of achieving 300 million tonnes in the next decade and become the world’s second largest steelmaker. Apropos to the plan, large steelmaking states like Chhattisgarh have begun to ascend with proposals to start 51 new induction furnaces totaling to an approx increase of over 150,000 tonnes of semi finish products. This will need about 0.2 mnt of Sponge iron as feed.

Bangladesh, one of the Next Eleven Emerging Countries (identified by Goldman Sachs Investment Bank and economist Jim O'Neill) is growing at over 6% a year with per capita income forecasted to grow by more than 50% by 2018 Vs 2012. The country has been rolling steel for many years but now with backward integration, will produce over 3 million tonnes of crude steel and reduce dependency on imports. The government has clarified its stand with pulling up duties on semi finish products and shifting focus on importing more scrap and also producing power. Read more on page 24.