Despite pandemic-linked blips, domestic demand outlook remains strong, which has helped acquirers ramp up utilisation levels. The ongoing steel upcycle will also mean stronger-than-expected realisations over the medium term.
“Consequently, acquirers may see 20 percent faster payback and are well set to tap the brownfield potential housed under these assets,” says the report.
The findings in the report are based on a study of five stressed steel capacities - Bhushan Steel Ltd (renamed as Tata Steel BSL), Essar Steel Ltd (renamed as Arcelor Mittal Nippon Steel India), Electrosteel Steels (now ESL Steel), Monnet Ispat & Energy (now JSW Ispat Special Products) and Bhushan Power & Steel - totalling 21million tons (mt), which were acquired under NCLT, mostly by other primary steel producers. These assets accounted for 70 percent of total financial claims resolved or liquidated under IBC in the steel sector till March 31, 2021.
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Car sales on a bumpy ride ahead of festivities
Plagued by the shortage of semiconductors, car sales in September saw a huge drop of 36.5 percent to 185,908 units from 292,858 units in the same month last year.
Indian Railways' iron ore handling up 36% till August
Indian Railways in April-August 2021 transported 73 mt of iron ore, up 36% from 54 mt during AprilAugust 2020.
Steel Ministry focuses on raising consumption, cost cutting measures
The steel ministry, in a recent series of meetings with officials of major state-owned and private steel makers, asked the industry to raise steel consumption across several sectors of the economy and also take steps to bring down costs of production.
August crude steel production up 8.2% y-o-y, 0.8% m-o-m
India’s crude steel production stood at 10 mt in August 2021, up 8% over August 2020 and 1% over July 2021.
ArcelorMittal bets big on decarbonisation
The Ghent project involves the reduction of CO2 emissions by 3.9 mtpa by 2030, by building a 2.5 million ton DRI plant and two electric furnaces, which will operate alongside its state-of-the-art blast furnace that can take waste wood and plastics as a substitute for fossil carbon.
Global crude steel output down 3% in August
China manufactured 83.2 mt in August, fall of 13% over previous year and India’s production was up by 8% y-o-y to 9.9 mt.
Iron-ore handled by major ports down 8% till August
The 12 major Indian ports handled 25 mt of iron ore during AprilAugust 2021, 8% lower than 27 mt handled in the same period of the previous year, according to data released by IPA.
Recycling: The route to decarbonisation
India, the second-largest steelmaker in the world, is also the second-largest importer of steel scrap. Surely India fares poorly in terms of scrap generation and consumption despite steel being the most recyclable metal in the world.
NMDC raises FY22 output target to 47 mt
“NMDC has made IT and digitalisation a strategic priority, synergising its efforts to significantly enhance competitive advantage and efficiency. We expect technology, automation and data analytics will reinvent all aspects of our business – from mineral exploration to mining, processing of ore to the sales and distribution of the product.” Sumit Deb, CMD, NMDC
More coking coal mines to be offered in auction
Govt has set up 2 committees under Assistant Secretary (Coal) for making suggestions on augmentation and consumption of domestic coking coal by the steel sector under Coking Coal Mission.
The bad bank will help banks clean their books, but it will not solve the problem of NPAs
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India’s airlines are staring at aggregate losses of a staggering Rs 1.3 lakh crore by the end of the next fiscal year. The fare hike will bring some relief but not quite enough
Narrow Business Focus, Wide Technology Adoption
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Although it was expected that the GDP growth numbers for the second quarter of this fiscal year would read far better than the dismal -23.9 per cent seen in the first quarter, the actual numbers came in as a surprise to many.
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The Tough Get Going
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THE ECONOMY IS SICK
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STRATEGIES FROM A CIO
Never confuse transformation with technology strategy. For core technology – it is better to go internal. Here’s a CIO’s formula for using technology right. From high-accuracy-oriented NLG to stress-testing platforms, from scalable frameworks to microservices, from reusable modules to machine learning, this CIO rates technology with a distinct report card. Ramesh Lakshminarayanan, CIO, CRISIL discusses some of the CIO strategies.