steel making notes

8/12/2019 steel making notes

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UNIT -1


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COUNTRY 2007 2008 2009 2010 2011 2012

1 P R of China 494.9 500.5 567.8 625.1 683.3 716.

2 Japan 120.2 118.7 87.5 109.4 107.6 107.

3 United States 98.1 91.4 58.1 66.4 86.2 88.6

4 India 53.1 55.2 56.6 66.2 72.2 76.7

5 Russia 72.4 68.5 59.9 80.3 68.7 70.6

6 South Korea 51.5 53.6 48.6 57.5 68.5 70.6

7 Germany 48.6 45.8 32.7 44.4 44.3 42.78 Turkey 25.8 26.8 25.3 28.5 34.1 35.9

9 Brazil 33.8 33.7 26.5 32.6 35.2 34.7

10 Ukraine 42.8 37.1 29.8 33.0 35.3 32.9

World 1,351.3 1326.5 1,219.7 1,413.6 1,490.1 154

TOP TEN Steel producing countries

8/4/2014 Dr R Haldar
http://en.wikipedia.org/wiki/Worldhttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Ukrainehttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/World


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India has become a major hub for steel products. TheSachs forecasts say, India's GDP is likely to surpass the GDby 2032. The steel demand outlook is quite bright. Internaand Steel Bureau (IISB) forecasts say, 'India is going to plarole in global steel market dynamics'. These developminduced Indian and foreign steel-makers to i

modernization of existing plants and new steel projects.

The Ministry of Steel, Government of India has revised itssteel demand forecast upward, for 2019-20, from the earof 110 Mt (as per National Steel Policy, 2005) to 180 Mt 2


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MAJOR ISSUES

The demand side of the product market, ie, the demand

scenario and forecasting.

The supply side of the product market, ie, the future supply of

steel (brown field and green field projects)

Infrastructure requirement of Indian steel industry to achieve

target production and challenges ahead

Policy measures

Strategic planning framework to meet the challenges

Domestic finished steel demand is likely to touch 156 Mt by

2019-20.


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INFRASTRUCTURE REQUIREMENT OF INDIAN

STEEL INDUSTRY AND THE CHALLENGES

The major infrastructures required for steel industry are mining,

power, water and external infrastructure like rail, road, power,

human capital, consultancy etc. The big issue with the Indian steel

industry is as to how to meet the infrastructure requirement for

steel production.

Internal Infrastructure

Steel industry's internal infrastructure constitutes of iron ore, coal

limestone, dolomite, natural gas etc. Availability of these

infrastructure itself is a challenge for meeting the growing demand

for steel in India.

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Iron ore is the basic input for production of steel. In th

present context, demand-supply scenario of iron ore large

determines the future of steel in India. It is observed tha

321 Mt of iron ore (at mines) is required to achieve th

target finished steel production of 156 Mt in 2019-20. Of thi

requirement of BF grade iron ore is 240 Mt and DR grade

81 Mt. Cumulative requirement of iron ore for the perio

2007-08 to 2019-20 is 257 billion tonnes


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A major portion of good quality iron ore has already

been used during the last century.

The quality of iron ore left contains less Fe conten

and mixed with more gangue materials.

India's iron ore have relatively high alumina and low Fe

content which causes adverse slag chemistry.

The ores are less closely sized and contain large

amount of undesirable fines than in other countries.

At present, major portion of India's iron ore is of the

medium grade (with 62.5% Fe content).

Problems with Iron Ore

Over the years mines have gone deeper and deeper

and the mines with high grade ore such as Bailadila

mines in the Barbil sector are now less in number.Fe content is a ain scattered in the lum .


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Coking Coal

Coking coal is another major mining infrastructure for steel

industry. India has huge coal reserves but as far as coking coal isconcerned India has serious shortage. An estimation of the

requirement of coking coal for achieving the target iron and steel

production by 2019-20 is given in Figure. Coking coal demand is

likely to be as high as 97Mt in 2019-20. Details of the computations

are given in Table. This is a challenging area, involving dependence

on imports, which is to be looked into. To meet this constraint,meticulous planning is required as import of coking coal means

foreign exchange outflow besides dependence on overseas sources

both with respect to availability and pricing.


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External Infrastructure

The role of external infrastructure is no less import

External infrastructure mainly constitutes of railw

roads, ports, power, water etc.Power

Steel plant operations are continuous in nat

Therefore, uninterrupted supply of good quality pow

essential for smooth operation of a steel plant. In cas

electric arc furnace based route, a strong power sugrid support is essential to sustain high short circuit le

The power requirement for typical steel plants of var

capacities and different process routes are :

Water Railways Land Human Capital Finance


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Land

Around 600 acres of land is required for installation of an intsteel plant of 1 Mt capacity with provision for future expansio

two million tonnes. The total land area to be acquired would

on the composition, size of main technological units, and top

of the land and the shape of the plot of land. Depending on t

of plant, these factors assume varying degrees of importance.

major challenge in this area is land acquisition as has been trecent events.


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Human Capital

Skilled human resource is very vital for the growth of any indust

sector. It is estimated that the anticipated steel production of

Mt by 2019-20 would require additional workforce of 275000

2019-20. Further the creation of one man-year of employmen

the steel industry generates an additional 3.5 man-years

employment elsewhere in the economy due to its strong linka

with other sectors such as transport, mining, construct

machinery, and steel fabrication.Thus, the total additional employment generated in the econo

due to expected production of 156 Mt of steel by 2020 would

around two million. Lack of engineering graduates in

metallurgical and related industry is going to create a lot

problems in the growth of such industries.

F t Aff ti T h l i l G th f St l S t i I di


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Factors Affecting Technological Growth of Steel Sector in India

For four decades since independence, the steel industry in India grew

controlled environment with administrative control over prices, distribution

imports resources, and high tariffs .

The productivity levels of state-owned large integrated steel plants rem

the other hand private sector firms were deprived of many of the opportunitDue to inadequate growth of infrastructure sectors, the overall demand

low. As for example, in 1996 the per capita consumption of steel in India w

compared to 603.4 kg, 384.3 kg, and 400 kg in Japan, Italy, and United States

Technology policy of India has major impact on steel industry. India to

develop its first technology policy in 1958. It lacked direction during the ear

after independence. The next notable technology policy came only in 198policy of India could not generate the desired thrust for a sustainable techno

The low level of R&D expenditure by steel manufacturers in India h

technological growth of steel sector. Indian companies put less emphasis on

As for example, in 1997-98, Tata Steel spent only 0.14% of its sales value on

research facilities in most of the large integrated steel plants are not proper

of them started their R&D activities late.

Technology transfer did not take place properly Some of the majo


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Technology transfer did not take place properly. Some of the majo

inadequacy of knowledge and skill to exploit the results and lack of

successful exploitation of the projects on commercial basis. Bureaucratic eff

royalty, inadequate price of technology, import restrictions are som

impediments considered serious by the technology suppliers.

Impact of poor infrastructure like high cost of electrical power, poor reliabavailability of electrical power, inadequate transport facilities, less-develope

decelerated the growth of steel industry.

Developing economy like India faced problems of building local technol

Due to this, the local manufacturing industry was not able to provide adeq

support to steel sector. The steel manufacturers had to import many o

besides technology.Cumbersome procedures to comply with the series of statuary requi

corresponding poor efficiency of administrative machinery retarded the

Industry .

Technological forecasting has not been done properly.

In many cases, particularly for medium and smaller size steel producers,

adoption of newer technologies is also a major barrier to their technology ad


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STRATEGIES TO MEET THE INFRASTRUCTURE CHALLEN

i. The advantage of indigenous availability of iron ore for In

steel industry needs to be further built upon. The experiof China with regard to paucity of iron ore in the last

decade is a pointer to this direction.

ii. Large reserves of iron ore are in deep forests and in ecolog

sensitive areas, where full-scale mining may be discouraged

fear of environmental degradation.

iii. Some of the richest mines are also located in tribal belts wmining may lead to widespread displacement

impoverishment of indigenous population especially, t

dependent on forest resources and this restricts m

operations.



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iv. Gradual reduction in export of iron ore imposing export duty

meet the requirements of steel industry with priority.

v. Exploration of minerals needs to be accorded highest priowith necessary incentives and by removing various lega

procedural constraints, Environment and forest clearance

mining leases should be granted within a pre-specified t

frame,

vi. A transparent set of policy rules that addresses the issue

compensation and makes the affected/displaced persbeneficiaries of the mining projects should be framed,



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vii. Scientific mining and economies of scale are to be encour

for which a minimum economic size for iron ore mines ma

prescribed,

viii. Beneficiation of iron ore and coal needs to be taken up priority to increase the size of reserves suitable for requirem

of steel industry. Adoption of relevant technology in these a

needs to be encouraged through suitable fiscal incentives,

ix. Sintering and pelletization need to be encouraged for dom

usage of iron ore fines for which fiscal incentives may

considered. Steel plants having captive iron ore leases shideally use all their iron ore fines and exports/domestic sa

lump/ fines to be discouraged.



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x. Indigenously available coals need to be blended w

imported coal to make these suitable for metallurg

operations. Therefore, there is a need to intensify effo

to acquire mines overseas to protect against p

availability and rising prices of purchased inputs. T

Indian steel industry should enter into l

term/evergreen contracts with major coal companie

the world. Further, alternative technologies like inject

of PCI, coal tar etc. into blast furnaces need to be f

explored to reduce dependence on imported coking c



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xi. Ferro-alloy is an essential input for steel making.

basic raw materials needed for this industry, especi

chrome and high quality manganese ore, are in shsupply. It is, therefore, necessary to give thrust

exploration of these minerals. In the intervening peri

these ores should be conserved for domestic

pending large-scale discoveries. Further, in view of

surplus domestic capacity, the industry needs to exempted from the ongoing fiscal rationalizat

processes aimed at rectifying the inverted import d

structure vis--vis the steel industry for the time bein



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Education and training institutions would need to be reinforce

ensure availability of trained and skilled manpower for the s

industry. Moreover, the issue of creating conducive environm

to attract young talents in core industries including steel secto

the country would also need to be addressed adequately.

The Government has an important facilitating role in

development of the steel industry. As steel making is a hi

capital intensive and complex process requiring large s

investment, historically the industry has evolved w

Government support. Some of the important areas, wh

Government support is required, are - providing esseninfrastructure facilities; assuring easy availability of critical in

such as iron ore, coal, gas and power; provision of training fac

for manpower development and creation of a consolidated

reliable data base for informed decision making by

stakeholders.8/4/2014 Dr R Haldar


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steel making notes

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