expansion

Out of the total Steel long production capacity in India, 5 primary producers hold around 30% market share and about 1,200 secondary manufacturers cater to the balance 70%. According to JPC, during Sep’14, the Bars & Rods sales were largely made by Tata Steel at about 9.3% followed by RINL with 8.2%, JSW Steel – 5.7%, SAIL – 5.5% and JSPL with about 2.6%.

Upcoming Government Projects

In the Budget FY15, the Central Government announced various construction projects like developing 100 smart cities across India, affordable housing plan for the urban poor, focus on rural power infrastructure and numerous other projects across the country. Thus, it appears that the Government’s incentive to Real Estate & Investment Trusts & Infrastructure Investment Trusts is likely to boost the demand for Steel long, if the plan gets properly executed.

With an equal and opposite reaction, Primary steelmakers in India have planned phase-wise upgrades of their manufacturing facilities on various stages of the value chain.

Capacity Addition by Government & Private Steel Companies

SAIL: According to the company’s modernization & expansion plan, by FY15, five of SAIL’s integrated Steel plants will ramp up capacities to 23.46 MnT pa of Steelmaking from the existing 13.8 MnT pa of hot metal production. Bhilai Steel Plant is likely to commission a new Bar & Rod mill with a capacity of 0.9 MnT pa during FY15. The Wire Rod mill with a production capacity of 0.5 MnT pa in IISCO Steel Plant at Burnpur was commissioned in Aug’13. Its new 0.75 MnT pa Bar mill is likely to be commissioned this fiscal.

RINL: RINL has recently installed a 6.3 MnT pa capacity Steel manufacturing plant in Vishakhapatnam. RINL will further expand its capacity by 1 MnT pa by FY17. As a part of proposed expansion, the PSU is coming up with modernization plans of Special Bar mill & Wire Rod mill with additional 0.75 MnT pa and 0.6 MnT pa capacity respectively.

JSW Steel: JSW Steel has an installed capacity of 14.2 MnT pa. Currently, the Bar Mill at Vijayanagar has a capacity to produce about 1 MnT of Bars per annum and its Wire rod manufacturing capacity at Vijayanagar is about 0.6 MnT PA. The company is in process of setting up a Bar mill at Vijayanagar & Dolvi with 1.2 MnT & 1.4 MnT pa capacity, respectively.

Company

Plant Location

Existing Capacity

Additional Capacity

Merchant/Bar Mill

Wire Rod  Mill

Bar & Rod Mill

SAIL

BSP, Bhilai, CG

0.5

0.42

0.9

DSP, Durgapur, WB

0.28

IISCO, Burnpur, WB

0.15

0.5

0.75

 

Total

0.93

0.92

1.65

RINL

Vishakapatnam, AP

0.71

0.85

1.35*

Tata Steel

Jamshedpur, JH

2

0.3

JSPL

Patratu, JH

1

0.6

JSW Steel

Vijayanagar, KA

1

0.6

2.6**

Quantity in MnT pa
*0.75 MnT Rebar manufacturing capacity & 0.6 MnT Wire Rod manufacturing capacity   ** 1.2 MnT at Vijaynagar New Rebar mill & 1.4 MnT Rebar mill at Dolvi, MH