Circulation of Monthly Review of Development in Global & Indian Steel Industry
The Indian Steel publishes a monthly development review of the global and Indian steel industry titled 'Review of Developments in Global & Indian Steel Industry'.
It reviews the development status of the steel industry on the global and domestic front pertaining to raw material, production and consumption, trade, shipping, pricing and forecasts, country reportage, policy developments, and economic parameters.
In the Financial Year 2017-18, 12 monthly issues were circulated to all its Member Companies (both full and affiliate) and Sub-Committees.
The report provides crisp insight into steel making and has garnered a positive response from the Indian Steel members.
From the 2012 Q1 - 2017 Q3, Asia was responsible for much of the recovery of world merchandise trade in 2017 on both the export and import sides. On the export side, Asia contributed 2.3 percent to global growth of 4.5 per cent in the latest year, or 51 per cent of the total increase. Asia also added 2.9 percent to world import growth of 4.8, or 60 per cent of the overall increase. North America made substantial positive contributions to exports and imports as well, after adding very little to trade growth in 2016 as internal and external demand faltered.
The World Steel Association forecasts global steel demand to reach 1,616.1 MT in 2018, an increase of 1.8 per cent over 2017. In 2019, the global steel demand is estimated to grow by 0.7 per cent to reach 1,626.7 MT. Steel demand in the developed world is expected to increase by 1.8 percent in 2018 and decelerate to 1.1 per cent in 2019. The outlook for steel demand in the US remains robust on the back of the strong economic fundamentals â€“ strong consumption and investment due to high confidence, rising income and low interest rates. The manufacturing sector is being supported by a low dollar and increasing investment while rising housing prices and steady non-residential sector growth point to a healthy construction sector. Though the recent tax reform is further expected to boost steel demand through its positive impact on investment, there is some concern over a possible overheating of the economy. The EU economy has developed strong momentum with broadening recovery across countries. Prompted by robust domestic and external demand, investments are expected to remain a major growth driver while low inflation, wage, and real income growth will support private consumption. Steel demand will be supported by a pickup in non-residential construction and strong manufacturing activities. The Indian economy is stabilising from the impact of currency reform and GST implementation and steel demand is expected to accelerate gradually, mainly driven by public investment. Stronger growth is held back by still weak private investment. Steel demand in ASEAN-5 countries dipped in 2017 due to slow construction activity and destocking. In 2018/19 however, steel demand is expected to regain the growth momentum backed by infrastructure investment.
India made it to the third spot among the top 10 steel using countries. It used 87.2 MT in 2017. China and the U.S. bagged the first and second spot, respectively, with 736.8 and 97.7 MT. By 2019, India is expected to use 97.5 MT of steel.
TOP 10 CRUDE STEEL PRODUCING NATIONS
|Rank||Nation||2017 (in MT)||2016 (in MT)||% 2017/2016|
TOP 10 STEEL USING COUNTRIES 2017 (IN MT)
|Rank||Countries||2017||2018 (f)||2019 (f)|
TOP 10 STEEL USING COUNTRIES 2017 (IN MT)
|Finished Steel||April â€“ March 2017-18 Qty in MT %||% Change over April â€“ March, 2016-17%|
|Production for Sale||104.97||3.1|
According to the Joint Plant Committee, production for sale of total finished steel at 104 MT, registered a growth of 3.1 per cent during April-March 2018 compared to last year. Steel imports from April 2017 to March 2018 stood at 7.48 MT, 3.5 per cent higher than the previous year. In the month of March 2018, import was 0.482 MT - down by 19.2 per cent compared to March 2017. Export from April 2017 to March 2018 witnessed a 16.7 per cent growth at 9.62 MT compared to the previous year. In the month of March 2018 export was 0.707 MT down by 56 per cent compared to March 2017. Consumption of finished steel grew by 7.9 per cent compared to last year, standing at 90.68 MT. Consumption in March 2018 was 8.72 MT which was up by 10.6 per cent compared to March 2017.
As per JPC data, Finish Long (Bar and Rod and Structure) steel production by both large and small- scale producers stood at 4.09 MT in March 2018. The rise in production can be considered due to better marginal value in the domestic market due to the price surge in the last 3-4 months by around 22-23 per cent since December 2017.
The Indian iron ore exports decreased sharply by 53 per cent in April 2018 to 1.22 MT against 2.63 MT in Mar-18. On a yearly basis, the exports witnessed a 60 per cent decline against 3.04 MT in April 2017. An increase in the demand for high grade ore by China has considerably reduced Indian export volumes. China's imports from India fell 42 per cent month-on-month. Declining the demand for low grade ore, strict environment regulation in china resulted in reducing the imports from India.
According to the IMF Economic Outlook in April 2018, the Indian economy is expected to grow at an annual rate of 7.4 per cent in 2018 and 7.8 per cent in 2019. India's economy will be lifted by strong private consumption as well as fading transitory effects of the currency exchange initiative and implementation of the national goods and services tax.
World crude steel production for 64 countries reporting to World Steel Association (WSA) was 131.8 MT in February 2018, a 3.5 per cent increase compared to February 2017. China's crude steel production was 64.9 MT in February 2018, an increase of 5.9 per cent compared to February 2017. India produced 8.4 MT of crude steel in February 2018, an increase of 3.4 per cent compared to February 2017. Japan produced 8.3 MT of crude steel in February 2018 - down 0.5 per cent compared to February 2017. South Korea's crude steel production for February 2018 was 5.4 MT, down 2.1 per cent as compared to February 2017. The crude steel capacity utilisation ratio of 64 countries in February 2018 stood at 73.3 per cent.
The USA Government announced the import tariff on steel and aluminium in March with no exemption to world's steel giant China. The U.S administration announced its plans to apply a 25 per cent tariff on Chinese goods worth USD 50 billion including software, patents and technology. These tariffs would target Chinese aerospace, tech and machinery industries, medical equipment and medicine. It irked China and the country retaliated quite harshly by announcing 25 per cent tariff on additional 106 US products exported to China. According to the reports issued, the U.S. farmers and manufacturers are opposing Trump's reliance on tariff's as a toll to change Chinese industrial policies. The Chinese tariffs are likely to hurt harvesters, processors, truck drivers, rail workers, and main street businesses that rely on a strong agricultural economy along with farmers. Business groups such as the National Association of Manufacturers have urged the administration to pursue rather than swap tariff hikes with the Chinese. However, both the U.S. and China have shown their willingness to ease the rising tensions among the investors.
(Source: Steel Mint Research-Report issued on March 2018)
According to Coal India Limited (CIL) data, the steel sector recorded a decline of 15 per cent in total coal dispatch to the Steel Sector from April 2017- December 2017. CIL had dispatched 4.11 MT coal to the steel sector during April 2017- December 2017 against the targeted value of 5.96 MT which was lower in the year compared with the dispatched of 4.84 MT coal recorded in the corresponding period of 2016. Consequently, CIL coal dispatch to the power plant was recorded 8 per cent higher in the year at 331.44 MT during Apr 17-Dec 17 compared with 308.24 MT April 2016 â€“ December 2016.
The Indian iron ore imports increased sharply by 49 per cent to 8.6 MT in FY-18 against 5.79 MT in FY-17. On a monthly basis, iron ore imports increased sharply by 36 per cent in March 2018. India's imports were registered at 1.46 MT in March 2018 against 1.07 MT in February 2018. Australia registered 38 per cent of Indian's Iron ore import in FY18 with an import volume of 3.27 MT against no import in FY 17.
As per Steel Mint Research, Indian pellet exports have registered an increase of 28 percent M-o-M to 0.75 MT in March 2018 as against 0.58 MT in February 2018. However, pellet export went down by 8 per cent on a yearly basis against 0.75 MT in March 2017. China continued to be the largest importer of Indian Pellet in FY'18 with imports of 7.35 MT up marginally as against 7.32 MT in FY-17. South Korea stood second largest importer at 0.44 MT followed by Japan at 0.40 MT and Oman at 0.30 MT.
Circulation of Monthly Global Trade Actions Report
The Indian Steel Association introduced a monthly edition titled 'Summary of Global Trade Actions' in January 2016. The Compendium covers all global trade actions in a specific month such as Anti-dumping and Countervailing duties and Safeguard duties pertaining to HS Codes in Chapter 72 (Iron & Steel) and Chapter 73 (Articles of Iron & Steel) under Indian Trade Classification.
In the Financial Year 2017-18, nine monthly issues were circulated to all Member Companies of ISA (both full and affiliate) as well as all Sub-Committees. The report highlights in FY 17-18 included the below:
The United States of America
- antidumping and countervailing duties on Carbon and certain Alloy Steel Wire rods against Belarus, Italy, Russia, Korea, South Africa, Spain, Turkey, Ukraine, UAE, and the UK
- countervailing duties on certain cut-to-length carbon-quality steel plate against India, Indonesia, and the Republic of Korea
- antidumping duty investigation of imports of steel concrete reinforcing bar from Japan and Turkey and countervailing duty investigation of imports of steel concrete reinforcing bar from Turkey
- institution of five-year review on stainless steel bar (revocation of antidumping duty) against Brazil, India, Japan and Spain
- affirmative antidumping duty on imports of concrete reinforcing bar against Taiwan
- conducting full five-year review by the U.S. International Trade Commission (USITC) concerning antidumping of tin and chromium-coated steel sheet against Japan
- Reviewing the countervailing duty order on cut-to-length carbon-quality steel plate against Republic of Korea
- Department of Commerce announcement of affirmaô€†Ÿve preliminary determinations in the countervailing duty investigations of imports of carbon and alloy steel wire rod from Italy and Turkey
- affirmative determination of antidumping on steel concrete reinforcing bar
- preliminary affirmative countervailing duty determination on carbon and alloy steel wire rod against Italy
- preliminary affirmative countervailing duty determination and preliminary affirmative critical circumstances determination against Turkey
- initiating antidumping duty and countervailing duty investigation of imports of stainless steel flanges against China and India
- the Department of Commerce aligning the final determinations in the countervailing duty (CVD) investigations of carbon and alloy steel wire rod against Italy and Turkey
- antidumping duty investigations on imports of carbon and alloy steel wire rod against Belarus, the Russian Federation, and the UAE.
- initiating an inquiry into antidumping measures on certain hot rolled coil exported to the country against Japan, the Republic of Korea, Malaysia, and Taiwan.
- Initiating two reviews of antidumping measures related to steel reinforcing bar against People's Republic of China.
- Initiating investigation into alleged dumping of steel rod in coils against Indonesia, Republic of Korea, and Vietnam
- Initiating a continuation inquiry into antidumping measures on aluminium zinc coated steel against China and Republic of Korea
- preliminary determination on dumping of carbon and alloy steel line pipe against Republic of Korea
- imposing a definitive antidumping duty on certain hot rolled flat products against China
- countervailing duties on imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in China
- corrigendum to the definitive antidumping duty on imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in China
- notice on impending expiry of certain antidumping measures on organic coated steel products against China
- imposing antidumping duty on imports of certain concrete reinforcement bars and rods against Republic of Belarus
- initiating antidumping proceeding concerning imports of low-carbon ferro-chrome against China, Russia, and Turkey
- definitive countervailing duty on imports of certain stainless steel bars and rods against India
- initiating an antidumping proceeding concerning certain corrosion resistant steels, subject to registration against China
- imposing a definitive antidumping duty on imports of certain concrete reinforcement bars and rods originating in the Republic of Belarus
- imposing a provisional anti-dumping duty on imports of certain corrosion resistant steels originating in the People's Republic of China
- amending regulation on imposing a definitive countervailing duty and collecting definitively the provisional duty on imports of certain stainless-steel wires originating in India
- Terminating investigation on circumvention of antidumping measures on imports of certain seamless pipes and tubes of stainless steel against China and India
- Corrigendum to Commission Implementing Regulation (EU) 2017/141 of 26 January 2017 imposing definitive antidumping duties on imports of certain stainless steel tube and pipe butt-welding fittings, whether or not finished against China and Taiwan
- imposing antidumping duties on hot-rolled flat steel products against China PR, Japan, Republic of Korea, Russia, Brazil, and Indonesia.
- imposing antidumping duties on cold-rolled flat steel products against China, Japan, Republic of Korea, and Ukraine
- request for consultations over countervailing measures on certain hot-rolled carbon steel flat products at WTO against the United States of America
- imposing countervailing duty on certain hot-rolled and cold-rolled stainless steel flat products
Vietnam and Chinese Taipei
- WTO issues panel report regarding Indonesian duties on certain iron or steel products
- Initiating an antidumping investigation with regard to imports of cold-rolled stainless steel in coils, sheets, or any form against China, Republic of Korea, Chinese Taipei, and Thailand