EXPORT-IMPORT BANK OF INDIA

OCCASIONAL PAPER NO. 172

Indian STEEL industry:

EXPORT PROSPECTS

EXIM Bank’s Occasional Paper Series is an attempt to disseminate the findings

of research studies carried out in the Bank. The results of research studies
can interest exporters, policy makers, industrialists, export promotion agencies
as well as researchers. However, views expressed do not necessarily reflect
those of the Bank. While reasonable care has been taken to ensure authenticity
of information and data, EXIM Bank accepts no responsibility for authenticity,
accuracy or completeness of such items.

© Export-Import Bank of India

June 2015

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2
Contents

Page No.

List of Tables 5

List of Exhibits 7

Executive Summary 9

1 Introduction 15

2 Global Steel: An Insight 24

3 Indian Scenario 37

4 Product and Market Identification of Steel Products Overseas 52

5 The Indian Steel Industry: Strategies 75

Annexures

Annexure I: Apparent Consumption of Finished Steel (million tonnes) 90

Annexure II: Normalized Revealed Comparative Advantage 91

of India’s Exports in Regions

Project Team :
Mr. Ashish Kumar, Assistant General Manager, Research and Analysis Group
Mr. Rahul Mazumdar, Chief Manager, Research and Analysis Group
Ms. Jahanwi, Manager, Research and Analysis Group

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4
List of TABLES

Table No. Title Page No.

1. Applications of Steel Products 18

2. Major Crude Steel Producing Countries (MT) 25
3. Major Steel Producing Companies of the World During 2013 26
4. Top Exporters of Steel (HS-72) in World (US$ bn) 28
5. Top Importers of Steel in World (HS-72) (US$ bn) 30
6. Category-wise Production of Pig Iron and Finished Steel in India
(‘000 tonnes) 40
7. Total Finished Steel Consumption 42
8. Consumption Pattern of Steel in India: Pre and Post-Recession 43
9. Real Consumption of Total Finished Steel (Alloy + Non-alloy) 43
10. Category-wise Real Consumption Trends (‘000 tonnes) 44
11. Investments in Steel Sector 45
12. Export of Iron and Steel (In ‘000 tonnes) 46
13. Trade Balance in India’s Steel Trade (Value in US$ Mn) 48
14. Top 10 Destination of India’s Exports: 2003-04 and 2014-15 49
15. Categorization of Iron and Steel HS codes 54
16. Top Importing Countries in Africa for the Product Champion
Categories, and their Major Suppliers 66
17. Top Importing Countries in Europe for the Product Champion
Categories, and their Major Suppliers 68
18. Top Importing Countries in Latin America for the Product
Champion Categories, and their Major Suppliers 70
19. Top Importing Countries in Oceania for the Product
Champion Categories, and their Major Suppliers 73
20. Performance of Indian Steel Plants as compared to Global Parameters 86

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6
List of EXHIBITS

Exhibit No. Title Page No.

1. Various Types of Steel in Market 15

2. Global Apparent Steel Demand (2008 – 2015) 18
3. India’s Steel Industry Capacity Utilisation 21
4. Trends in World Crude Steel Production (Mn Tonnes): Major Regions 24
5. Export Orientation of Global Steel Industry 29
6. Global Composite Carbon Steel Prices (US$ / tonne) 31
7. Global Iron Ore Prices (US$ per Dry Metric Tonne) and Change in Price 32
8. Outlook by Apparent Steel Use (MT) – 2015 and 2016 35
9. Production for Sale of Finished Steel (Million Tonnes) 39
10. Steel Consumption Pattern in India : 2013-14 41
11. India’s International Trade in Iron and Steel (US$ Bn) 47
12. Structure of the Steel Industry 50
13. Flat Steel Consumption: Key End-User Industries 51
14. Movement in NRCA across Regions for all Iron and Steel
Products over the Period 2008-12 55
15. Movement in NRCA across Regions for Articles of Iron and Steel
(other than Tubes, Pipes and Hollow Profiles) over the Period 2008-12 56
16. Movement in NRCA across Regions for Iron and Non-Alloy Steel
over the Period 2008-12 57
17. Movement in NRCA across Regions for Other Alloy Steel; Hollow Drill
Bars and Rods, of Alloy or Non Alloy Steel over the Period 2008-12 58
18. Movement in NRCA across Regions for Primary Materials;
Products in Granular or Powder Form over the Period 2008-12 59

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 Exhibit No. Title Page No.

19. Movement in NRCA across Regions for Stainless Steel over

the Period 2008-12 60
20. Movement in NRCA across Regions for Tubes, Pipes and Hollow
Profiles over the Period 2008-12 61
21. Aggregate Level Identification of Promising Markets 64
22. Product Matrix at Disaggregate Level for India’s Exports to Africa 65
23. Product Matrix at Disaggregate Level for India’s Exports to Asia 67
24. Product Matrix at Disaggregate Level for India’s Exports to Europe 68
25. Product Matrix at Disaggregate Level for India’s Exports to
Latin America 69
26. Product Matrix at Disaggregate Level for India’s Exports to
North America 71
27. Product Matrix at Disaggregate Level for India’s Exports to Oceania 72
28. Coking Coal Import by India (US$ bn) 76
29. India’s Exports of Iron Ore: World and China (US$ bn) 80

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EXECUTIVE SUMMARY

OVERVIEW particularly China, whose demand

remains a pivotal factor driving the
Steel industry is often considered as global steel industry.
the backbone of the economy, depict-
ing the development and performance The steel industry in India has also
of the overall economy. A period of witnessed a rapid rise in production
industrial growth is typically matched by over the past few years at the backdrop
prosperity in the iron and steel sector; of enhancement of capacity. This
similarly, industrial sluggishness gets has resulted in India becoming the
captured in contraction in demand for fourth largest producer of crude steel
iron and steel, resulting in a phase of (after China, Japan, and USA) and
stagnation for the industry. the largest producer of sponge iron
in the world. However, the industry
Increasing modernization in the witnessed a sharp decline in capacity
twenty-first century has led to a utilisation to 77 per cent in 2013-14
doubling of global steel production from a high of 91 per cent in 2010-11,
from 851 MT (million tons) at the primarily due to shortage of iron ore.
turn of the century in 2000 to 1,662 Notwithstanding this, the steel sector
MT in 2014. According to World Steel in India accounts for about 2 per cent
Association, the global steel demand, of India’s GDP and holds a 6 per cent
measured in terms of apparent steel share in the industrial production
use, which is defined as deliveries of of the country. With construction
steel goods plus net direct imports and infrastructure sectors together
of steel goods, is estimated to have occupying a significant share in total
touched 1537 MT in 2014. The past steel demand in India, the revival of
growth in steel has largely been at these sectors are expected to cause
the backdrop of heightened economic a positive effect on the domestic steel
activity in the emerging economies, industry.

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 GLOBAL STEEL: AN INSIGHT registered a CAGR of 5.1 per cent
during 2004 and 2013, with the largest
Asia and the Middle East remained exporter of steel – China recording a
the most vibrant regions in terms of brisk CAGR of 14.4 per cent during
production, with a CAGR of 7.1 per this period. The other major exporters
cent and 7.0 per cent, respectively, include Japan, Germany, South Korea
over the last decade (2005-2014), and Russia.
in crude steel as compared to 4
per cent for the world as a whole. As demand for steel weakened and
However, regions like EU, Africa and a huge overcapacity hovered over
North America exhibited contraction, the global steel industry, raw material
registering negative CAGRs of 1.6 per prices eased. The global composite
cent, 1.2 per cent, and 0.6 per cent, carbon steel prices, which stood at
repsectively. Production in other parts US$ 686/tonne in June 2013 and had
of the world remained either stagnant touched a peak at US$ 726/tonne in
or registered a decline. January 2014, plunged to US$ 592/
tonne in February 2015, owing to a
At the country level, China remained demand-supply mismatch. This was
by far, the largest producer of crude the ninth consecutive decline in global
steel accounting for nearly half of the steel prices since May 2014. Iron-ore
world’s steel production in 2014. The prices on the other hand stood at
country also recorded the highest US$ 60.2 per dry metric tonne (as on
growth in production levels among May 2015) as compared to US$ 100.5
the major producers with output per dry metric tonne a year ago. In
increasing from 355.8 MT in 2005 to fact, prices have dipped significantly
822.7 MT in 2014 (CAGR of 9.8 per since May 2010 when they hovered
cent). The only other major producer around US$ 161.35 per dry metric
to witness such dynamism was India, tonne.
which recorded a CAGR of 6.9 per
cent - increasing its production from With the dynamics in steel industry
45.8 MT to 83.2 MT during the same and increasing competition, new
period. trends in the industry are being
witnessed from product development,
The top 10 exporters of steel in the technology development, accident
world occupied a share of 58 per free and sustainable steel, to having
cent in 2013. Global steel exports a life-cycle assessment.

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INDIAN SCENARIO became the third largest consumer of
steel globally in 2009, and continued to
The Indian steel sector was the first remain so as on 2014. China was the
core sector to be completely freed largest consumer with a consumption
from the licensing regime. Since 1991, of 711 MT in 2014.
the sector has witnessed consistent
reforms including elimination of Among end-user sectors, infrastruc-
pricing and distribution controls. ture and industrial construction
together continued to account for
Crude steel production in India about 40 per cent of India’s total steel
amounted to 81.54 MT in 2013-14, consumption in 2013-14, followed by
registering a growth of 4.0 percent as automobiles (12 per cent) and the
compared to the previous year. The pipes & tubes industry (9 per cent).
production for sale of total finished Category-wise real consumption of
steel (alloy and non-alloy) in the total finished steel was led by non-flat
country stood at 85.05 MT in 2013-14 steel (41.28 MT), which recorded a
as compared to 14.23 MT in 1991-92 growth rate of 2.6 per cent on year on
– an increase of nearly 6 times. The year basis, while growth rate declined
total production for sale of pig iron for flat steel consumption (32.61 MT)
was 7.29 MT in 2013-14 as compared by 2.0 per cent during 2013-14. This
to 1.59 MT in 1991-92. In the case of was also reflected in the respective
DRI (direct reduced iron), India is one shares, with the share of flat steel
of the largest producers in the world. in total consumption (44 per cent)
From a mere 1.31 million tonnes of dropping marginally in 2013-14,
production in 1991-92, India’s DRI accompanied by a gain in the share
production reached 14.97 million of long/non flat steel (56 per cent)
tonnes in 2013-14 after touching a during the year as compared to the
high of 25.08 million tonnes in 2010- last year.
11. The category-wise production of
pig iron and finished steel in India In terms of value, India’s exports of
during the period 2013- 14 shows that iron and steel in the year 2008-09
rods/ bars and HR Coils/Strips were was valued at US$ 13.3 billion, and
the largest produced categories, with India’s imports of iron and steel were
shares of 35 per cent and 23 per cent, valued at US$ 13.9 billion, leading to
respectively. a trade deficit of US$ 0.6 billion under
this category. After having witnessed
On account of the steady growth in a trade deficit for a number of years,
the domestic steel consumption, India in 2013-14 India displayed a trade

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 surplus in iron and steel, with exports products where India has been
amounting to US$ 16.0 bn and imports performing well, as well as identifying
amounting to US$ 12.7 bn. However, the areas where producers have lost
in 2014-15, India exhibited a marginal ground and success has been limited.
trade deficit of US$ 35 mn in iron and This will be a necessary first step
steel (Table 13). towards identification of areas where
Indian companies could potentially
India’s export markets for steel are expand their presence.
well diversified and less concentrated
as compared to imports. While An attempt has been made to map
India’s exports of iron & steel (HS the global demand for iron and
Code 72) during 2003-04 was hugely steel products with India’s export
concentrated in China, the share
competitiveness, with a view to
declined drastically in 2014-15.
outlining a market specific approach
Unlike 2003-04, India’s exports of
for exporters. A generic analysis
iron and steel (HS code 72) seemed
has been attempted in order to
quite diversified across regions and
identify products that have strong
countries in 2014-15. However,
capabilities to export. Also analyzed
India’s exports of articles of iron
are the current export markets where
and steel (HS code 73) remained
India has penetrated and the key
concentrated within USA and UAE,
competitors which India faces. While
both during 2003-04 and 2014-15,
with their cumulative shares being India needs to further consolidate its
34.7 per cent in 2003-04 and 31.7 per share in the major import markets,
cent in 2014-15. there are markets where India already
has export competitiveness, but its
PRODUCT AND MARKET imports are at relatively lower levels.
IDENTIFICATION OF STEEL These markets are the potential
PRODUCTS growth drivers for India’s iron and
steel exports and need to be suitably
This chapter provides an analysis of targeted.
iron and steel products and markets
where the country has demonstrated At the aggregate level, the markets
comparative advantage. Quantifi- of North America, Latin America,
cation of comparative advantage Asia and Oceania are regions where
over a period of time will help in Indian Iron and Steel products are
understanding the markets and competitive, and these regions have

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also exhibited strong import demand THE INDIAN STEEL INDUSTRY:
for the products. In Europe and Africa, STRATEGIES
Indian Iron and Steel products are
competitive, but the growth in import Raw materials security is on the
demand has been frail, which puts top of the agenda. India is very
forward a case for Indian exporters dependent on imported coking coal.
currently exporting to these regions, Approximately 60 – 65 per cent of the
to diversify into other regions which domestic coking coal requirements
have shown higher import demand. are met through imports due to
unavailability of appropriate qualities
Product Champions have been in the country. As companies look to
identified at the regional level. These secure their raw materials supplies,
have the maximum potential, as the the capability to acquire, develop and
regional import demand in these operate overseas raw material assets
products has shown robust AAGR has become a strategic imperative
over the period 2008-2012, while given the short term challenges in
India’s exports of these products to securing such assets in India.
the region are competitive, and the
competitiveness has remained same The comprehensive economic
or increased over the period under partnership agreement (CEPA) with
consideration. The identified product South Korea has resulted in increase
champions are ‘Stainless Steel’ in in imports of iron and steel. With the
Africa and Europe; ‘Stainless Steel’ conclusion of the India-Japan FTA
and ‘Primary Materials; Products in in 2011, India faces a similar threat
Granular or Powder Form’ in Latin of imports from Japan. Companies
America; and ‘Articles of Iron and have to bring to the notice of the
Steel (other than Tubes, Pipes and policymakers about the various pitfalls
Hollow Profiles)’, ‘Tubes, Pipes and of such trade agreements, and hence
Hollow Profiles’, ‘Iron and Non-Alloy necessary attention is required during
Steel’, and ‘Other Alloy Steel; Hollow such deals.
Drill Bars and Rods, of Alloy or Non-
Alloy Steel’ in Oceania. There were Given the fact that steel market across
no true product champions in the the globe is vulnerable to global
case of India’s exports to Asia and conditions, India needs to be more
North America. proactive in diversifying its export

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 markets. India could therefore adopt raw materials more efficiently, which
a similar strategy as Brazil, focusing can bring significant cost savings.
on geographically nearer markets
where it has a freight advantage, Among other crucial aspects which
such as Nepal, Bangladesh and the Government may look into to
Sri Lanka. At the same time, Indian help establish sustainable growth for
companies could be more successful the steel industry are streamlining
in other important and growing export land acquisition and environmental
destinations for steel sheet products, regulations, augmenting infrastructure
and logistic facilities, discouraging the
including the Middle East and Africa,
exports of iron-ore from India given
where they have a freight advantage
India’s domestic needs, reducing
over China, Japan and South Korea.
procedural delays, and encouraging
futures market for steel products.
To ensure competitive advantage,
steel makers need to concentrate on Firms, on the other hand, need
reducing costs especially operating to introduce new product lines in
costs, need to be brought down by accordance with the needs of specific
adopting strict cost control measures markets, be abreast of the competition
and through benchmarking. Another they face from substitutes, enhance
major cost that needs to be looked into recycling of steel in the country, while
is the cost of raw material. The only raising the manufacturing facilities in
way to reduce costs on these is using the steel plants to global standards.

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1. INTRODUCTION

Steel industry is the pulse of an 1.1 Steel Classification

economy, and depicts the direction in
Steel is an alloy of iron and carbon
which the overall economy is heading.
containing less than 2 per cent carbon
The industry essentially measures the
and 1 per cent manganese and small
economic progress of the country or
amounts of silicon, phosphorus, sulphur
region. This is largely because of the
and oxygen. Steel manufacturers
manifold usage it has in numerous end primarily produce three types of
user industries, including infrastructure products: flat products, long products
which is a key consumer of steel. and alloy steel.

Exhibit 1: Various Types of Steel in Market

Steel

Carbon steel Alloy steel

(mild steel) (alloying elements
C,Mn,Fe Ni.Cr.Mo.Mn and others

Continous Ingots Tool steel Stainless steel Heat Others

cast (corrosion resistant) resistant steel

Semis slabs Semis blooms/billets

Hot rolled Long products Hot rolled products Long products bars
products plates bars & rods flat product plates/ & rods structurals
coils strips structurals rails/ sheets coils/strips
wires rails/wires

Cold rolled Cold rolled

products sheets products sheets
coils strips coils strips

GP, GC, TMBP, GP, GC, TMBP,

tin free tin free
El sheets El sheets

HR : Hot Rolled
CR : Cold Rolled
GP : Galvanised Plain
GC : Galvanised Coil
TMBP : Tin Mill Black Plate

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 Flat steel is typically made by rolling are therefore used for smaller type of
steel through sets of rollers to achieve long products.
the final thickness. Finished flat steel
products are produced from slabs in • Typical rod products are reinforcing
rolling mills, using flat rolls. These are rods used in concrete, engineering
produced in hot rolled (HR), cold rolled products, gears, tools, etc.
(CR) or coated condition.
• Typical bar products can have
• Plate products: Vary in thickness cross-sections in the shape of
from 10-200 mm. Plate products are squares, rectangles, circles,
used for shipbuilding, construction, hexagons, angles, etc. These bars
can also be used for construction,
large diameter welded pipes and
and are used largely for engineering
boiler applications.
purposes.
• Strip products: These may be hot
• Sections are large rolled steel joists
rolled (HR) or cold rolled (CR)
(RSJ) that are used in building
and vary in thickness from 1-10
projects. Wire-drawn products and
mm. Strip products are used in
seamless pipes are also part of the
automotive body panels, domestic
long products group.
white goods, steel (or tin) cans,
and products ranging from office
Alloy steel comes in different grades,
furniture to heart pacemakers.
which have varying proportions of
carbon and other elements. These
Long products are mainly used in the
elements determine the property
construction industry. Long products of the steel. Different types of alloy
come out of the mill as long bars of steel have different applications. For
steel. Long steel is produced in a wide instance, hard abrasion-resistant
range of shapes and sizes. These can steel is used to make industrial tools;
have cross-sections shaped like a H or heat-resistant steel is used in high-
I (called joists, beams and columns), temperature applications; and fatigue-
a U (channels), or a T (sections). resistant steel is meant for mechanical
Thus, a long product can be a rod, a applications. The composition of
bar or a section. Blooms and billets alloy steel depends upon its intended
(which are semi-finished products) application and cannot be generalised
are mostly used to roll long products. as a single commodity, i.e. it cannot be
Billets are smaller than blooms, and categorised as in the case of HR and

16
CR sheets, etc. Although this category of metallic iron such as direct-
consists of high-value steel alloys, reduced iron (DRI) or hot metal can
volumes of this segment are very low also be used in the EAF route.
as compared with those of the carbon
steel products. The most widely used The main by-products produced during
alloy steel is stainless steel. It is a iron and crude steel production are
corrosion-resistant metal and contains slags (90 per cent by mass), dusts and
chromium and nickel as major alloying sludges. Process gases, for example,
elements. from the coke oven, BF or BOF are
also important by-products.
1.2 Steel Production
On average the production of one
There are two main ways in which steel tonne of steel results in 200 kg (EAF)
is produced: to 400 kg (BF/BOF) of by-products.

• Iron ore-based steelmaking 1.3 Application

accounts for about 70 per cent of
world steel production. Iron ore is The wide range of application makes
reduced to iron and then converted steel the most important ingredient
to steel. The main inputs are iron for manufacturing and other industrial
ore, coal, limestone and recycled activities. Usually a period of industrial
(scrap) steel. The main ore-based growth is matched by prosperity in
production routes are: ironmaking the iron and steel sector; similarly,
via the blast furnace (BF) followed industrial sluggishness gets captured
by steelmaking in the basic oxygen in contraction in demand for iron
furnace (BOF), and ironmaking and steel, resulting in a phase of
via direct reduction (DRI) followed stagnation for the industry. Hence
by steelmaking in the electric arc the performance of steel industry
furnace (EAF). hinges upon the performance of the
application and end-user industries.
• Scrap-based steel accounts
for about 30 per cent of global 1.4 Progress of Steel Globally
steel production. It is produced
by recycling steel in an EAF. The In terms of growth in production,
main inputs are recycled steel increasing modernization in the
and electricity. Depending on the 21st century has led to a doubling of
plant configuration and availability global steel production from 851 MT
of recycled steel, other sources (million tons) at the turn of the century

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 Table 1: Applications of Steel Products

Products Applications
Pipes, tubes, strapping materials, telecom poles, streetlight poles, lancing
HR coils
tubes, wheels, industrial & auto chain etc.
Wagon/ coach building, automobile, agricultural implements, LPG cylinders,
HR sheets
defense equipment, general engineering/fabrication etc.
Automobile components, bicycle components, barrels, furniture/office
CR coils/sheets equipment, precision tubes, instrument panels, refrigerators, railway
coaches/locomotives etc.
GP/GC sheets/ Roofing, panelling, industrial sheds, air conditioning, containers, agricultural
coils implements, rolling shutters etc.
Shipbuilding, pipes, tanks, boilers, plant and machinery, railway stocks,
Plates
wheels, vehicle manufacturing, etc.
Food and other containers, beverage cans, kitchen utensils, radio
Tinplates
components etc.
Power transformers, generators, rotating equipment, motors for washing
Electrical sheets
machines, furnace blowers, fans, etc.
Wire rods Bolts, nuts, screws, wire netting, electrodes, wire mesh etc
Bars General concrete reinforcement in buildings, bridges etc.
Rounds General engineering, bright bar
General engineering, construction, fabrication, transformer poles, fencing
Structural items
angles, etc.

Exhibit 2 : Global Apparent Steel Demand (2008 - 2015)

* expected

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in 2000 to 1,662 MT in 2014. The size from domestic producers having newer
notwithstanding, the industry remains or expanded facilities, as well as the
relatively fragmented. It is also highly threat of cheaper imports, continues
cyclical and intensely competitive. to result in significant oversupply
compared to demand.
The global economic activity is
perceived to improve in 2015–16, The global steel demand has been
largely because of the lower oil prices. increasing gradually, as evident from
IMF has estimated the global growth data compiled from 2007 onwards.
to be 3.3 per cent in 2014. Growth for While steel demand registered a
2015 and 2016 are projected to be 3.5 decline from 1226 Mt in 2008 to
per cent, and 3.7 per cent respectively. 1,151 Mt in 2009 following the global
However, the possible downward financial crisis, it recovered since then
revisions to growth forecasts in to record a consistent increase to
select economies highlight continued touch 1537 Mt in 2014.
fragilities. In advanced economies,
output gaps generally remain large. In According to World Steel Association,
many emerging market and developing the demand is expected to touch 1544
economies, stronger external demand MT by 2015. The past growth in steel
from advanced economies is expected has largely been at the backdrop of
to be crucial to lift growth, although heightened economic activity in the
domestic weaknesses continues to emerging economies, particularly
remain a concern. China, and hence the demand from
China remains a pivotal factor.
The continuing Euro-zone difficulties,
slow/flat growth in developed The world steel capacity utilization1
economies, and a cooling of emerging in the post-crisis period has been
economies has taken a toll on the witnessing a continuous decline,
industry. Growth in the Chinese which was well below the pre-crisis
economy, which in recent years has level. During June 2008, capacity
been one of the main demand drivers utilisation globally stood at 92.7 per
for steel, slowed down. Overcapacity cent, which touched a low of 59.8 per
has also been a perennial problem. cent in December 2008. There have
Stiff competition in the United States been fluctuations in capacity utilisation
1
The monthly crude steel capacity utilisation ratio is calculated based on crude steel produc-
tion and capacity information available at Worldsteel. The capacity information is based on
publicly-available data, updated twice a year and verified through Worldsteel’s membership.

19
 during the years that followed, with MT for the year 2014, up by 0.8 per
capacity utilisation reaching a high of cent compared to 2013.
84.4 per cent in December 2010, and
a low of 72 per cent in January 2013.  In 2014, the Middle East, the
The crude steel capacity utilisation smallest region for crude steel
ratio in December 2014 stood at 72.7 production had the most robust
per cent and was 2.4 percentage growth. Crude steel production in
points lower than December 2013. The the EU (28), North America and Asia
average capacity utilisation in 2014 grew modestly in 2014 compared
was 76.7 per cent compared to 78.4 to 2013, while in the C.I.S. and
per cent in 2013. South America it decreased.

According to World Steel Association,  Annual production for Asia was

the global apparent steel use (which 1,132.3 MT of crude steel in
is defined as deliveries of steel goods 2014, an increase of 1.4 per cent
plus net direct imports of steel goods), compared to 2013. China’s crude
is estimated to have increased 0.6 per steel production in 2014 reached
cent to 1,537 million tonnes in 2014 822.7 MT, an increase of 0.1
following growth of 6.2 per cent in 2013. per cent on 2013. China’s share
Steel demand is projected to grow in of world crude steel production
the U.S. on the back of an improving decreased from 49.8 per cent in
global economy and strong momentum 2013 to 49.5 per cent in 2014.
in the automotive markets. After years Japan produced 110.7 MT in
of strong demand, China’s steel usage 2014, a 0.2 per cent increase
is however expected to lose steam due from 2013. South Korea’s crude
to the Government’s ongoing attempt steel production was 71.0 MT, an
to restructure the economy, focusing increase of 7.6 per cent compared
on domestic consumption instead to 2013.
of exports. While steel production is
expected to grow at a slow pace, a  The EU recorded an increase of
slowdown in the real estate market 1.7 per cent compared to 2013,
and weaker infrastructure investment producing 169.2 MT of crude steel
growth are likely to weaken Chinese in 2014. Germany produced 42.9
steel demand.  MT of crude steel in 2014, up
by 0.7 per cent over 2013. Italy
As per the latest data available from produced 23.7 MT in 2014, a (-)1.4
the World Steel Association, world per cent decrease over 2013.
crude steel production reached 1,662 France’s crude steel production

20
 Exhibit 3: India’s Steel Industry Capacity Utilisation

Source: Joint Plant Committee

in 2014 was 16.1 MT, an increase due to high input costs and a weak
of 2.9 per cent. Spain produced macroeconomic environment, both
14.2 MT of crude steel in 2013, globally and domestically, resulting in
a decrease of (-)0.6 per cent muted demand for steel products from
compared to 2013. the end-user industries.

 In 2014, crude steel production in The steel industry in India has seen
North America was 121.2 MT, an a rapid rise in production over the
increase of 2.0 per cent on 2013. past few years at the backdrop of
The US produced 88.3 MT of crude enhancement of capacity, which has
steel, up by 1.7 per cent compared resulted in India becoming the fourth
to 2013. largest producer of crude steel (after
China, Japan, and USA) and the
1.5 Progress of Steel in India largest producer of sponge iron in the
world.
The global scenario has been a
prologue to the Indian market situation However, the steel industry has lately
where steel players have started witnessed some apprehensions with
showing signs of down-cycle leading to regard to capacity utilisation, which
margin compression. This is primarily registered a sharp decline to 77 per

21
 cent due to shortage of iron ore in shifts toward other substitutes, have
2013-14 from a high of 91 per cent in significantly impacted steel prices. 
2010-11.  The supply of steel due to imports
from China in the market outstripped
Project commissioning in the Indian demand. Added to this, the situation in
steel industry also showed a slow down Europe and tempering growth in Asia,
in 2013-14. Only 3.4 million tonnes of have kept prices in check. The lower
finished steel manufacturing capacity is steel prices have affected margins
estimated to have been commissioned of major steelmakers. It is however,
during the year. The pace of capacity believed that the recovery in pricing
additions is expected to have momentum will be driven by a reviving
improved in 2014-15 with improved domestic economy, stabilization in
economic conditions. The industry
the Euro-zone, and a rebound in
is expected to add finished steel
construction activity.
manufacturing capacity of around 11
million tonnes at a cost of Rs. 641.5
While the rupee has stabilized at a new
billion during the year 2014-15 2 .
low of around 61-63, a weak rupee
Most of these capacities were earlier
could lead to increase in coking coal
scheduled for commissioning in 2013-
costs for domestic steel majors like
14. However, owing to issues such as
SAIL and JSW which are dependent
high cost of funding, cost over-runs,
on imports. For companies with
land acquisition delays, regulatory
higher forex debt like JSW Steel, and
issues, absence of assured supply
Tata Steel, it could also lead to higher
of raw material and other operational
net debt.
issues, the commissioning of these
projects has been delayed.
Over a longer term for the steel
As far as prices are concerned, steel industry, volume growth however
prices are generally volatile owing to would be critical, given that substantial
the highly cyclical nature of the global fresh capacities are likely to be
steel industry. Rising raw material commissioned in the next two years.
prices have a direct impact on steel Unless demand conditions improve
prices. Furthermore, overcapacity, significantly, overall capacity utilisation
glut in cheaper Chinese steel imports, levels and profitability of steel players
overall economic conditions, and would remain impacted.

2
Crisil Research

22
SUM UP the need for building skyscrapers
and public-transport infrastructure,
While the economic scenario across the pushing steel demand. Emerging
world seems to bottom out, challenges economies like India will continue to
remain for global steelmakers to be major drivers of demand due to
operate in such trying environment, the huge amount of steel required for
with uncertainty in demand and volatile urbanization and industrialization.
raw material prices. With continuing
weak market conditions, cost reduction The demand for steel is thus expected
activities are essential for steelmakers’ to remain strong in the years to come,
sustainability and future growth. While and hence the need for Indian steel
China is facing excess capacity in industry to address the impending
challenges, so as to be better equipped,
steel production resulting in depressed
to cater to both the domestic and
prices, India faces issues of land
overseas demand. This will also
acquisition and capacity utilisation,
facilitate reduction in the trade deficit in
among others.
steel, leading to import substitution.

However, the most promising aspect

This paper briefly reviews trends in
of the steel industry in India is its
the global and Indian steel market and
potential. India has already emerged
identifies export potential of Indian
as the 4th largest steel producing nation
steel products to different regions of
in the world. The steel sector in India the world. Also discussed are select
accounts for about 2 per cent of India’s strategies of the Indian steel industry,
GDP and holds a 6 per cent share especially from the perspective of
in the industrial production. With the international trade. The silver lining in
construction and infrastructure sectors the present circumstance is the fact
together occupying a significant share that developing countries have strong
in total steel demand in the country, the fundamentals for steel demand growth
revival of these sectors are poised to with emerging countries like China,
cause a positive effect on the revival of India and Brazil, and select countries
the domestic steel industry. The urban in Africa and South Asia holding the
population increase worldwide, and in key to fuel future growth of the steel
India in particular, will also augment industry.

23
 2. GLOBAL STEEL: AN INSIGHT

2.1 Production CAGR of 7.1 per cent and 7.0 per

cent, respectively, over the last decade
Global steel production has seen a (2005-2014), as compared to 4 per
phenomenal growth over the last three cent for the world as a whole. Regions
decades. While it took more than 20 like EU, Africa and North America
years for global steel production to registered negative CAGRs of 1.6 per
move from 716 MT (in 1980) to breach cent, 1.2 per cent, and 0.6 per cent.
the 850 MT mark (in 2000), it took Production in other parts of the world
just the next 12 years to double its remained either stagnant or registered
production to 1662 MT in 2014. a decline.

Asia and Middle East remained the At the country level, China remained by
most vibrant regions in terms of far, the largest producer of crude steel
production of crude steel, with a accounting for nearly half of the world’s

Exhibit 4: Trends in World Crude Steel Production (Mn Tonnes): Major Regions

As accessed in February 2015

24
 Table 2: Major Crude Steel Producing Countries (MT)

CAGR Share
Country 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(2005-14) in 2014

China 355.8 421 489.7 512.3 577.1 638.7 702 716.5 821.9 822.7 9.8 49.9

Japan 112.5 116.2 120.2 118.7 87.5 109.6 107.6 107.2 110.5 110.7 -0.2 6.7

USA 94.9 98.6 98.1 91.4 58.2 80.5 86.4 88.7 86.8 88.3 -0.8 5.4

India 45.8 49.5 53.5 57.8 63.5 69 73.5 77.6 81.2 83.2 6.9 5.0

Russia 66.1 70.8 72.4 68.5 60 66.9 68.9 70.4 68.8 70.7 0.8 4.3

S. Korea 47.8 48.5 51.5 53.6 48.6 58.9 68.5 69.1 66.0 71.0 4.5 4.3

Germany 44.5 47.2 48.6 45.8 32.7 43.8 44.3 42.7 42.6 42.9 -0.4 2.6

Turkey 21 23.3 25.8 26.8 25.3 29.1 34.1 35.9 34.6 34 5.5 2.1

Brazil 31.6 30.9 33.8 33.7 26.5 32.9 35.2 34.5 34.1 33 0.5 2.0

Ukraine 38.6 40.9 42.8 37.3 29.9 33.4 35.3 33 32.7 27.2 -3.8 1.6

WORLD 1148 1250 1348 1343 1237 1433 1537 1545 1649 1662 4.1 100.0
Source: Steel Statistical Yearbook 2014, World Steel Association, as accessed in February 2015

25
 steel production in 2014. The country 2.2 Major Steel Players
also recorded the highest growth in
production levels among the major In the year 2013, Arcelor Mittal occupied
producers, with output increasing from the top spot in crude steel production,
355.8 million tonnes (MT) in 2005 to producing 96.1 million metric tonnes of
822.7 MT in 2014 (CAGR of 9.8 per steel, followed by Nippon Steel (50.1
cent). The only other major producer million metric tonnes), Hebei Steel
to witness such dynamism was India, (45.8 million metric tonnes), Boasteel
which recorded a CAGR of 6.9 per cent from China (43.9 million metric tonnes),
and Wuhan and Posco (39.3 million
- increasing its production from 45.8
metric tonnes each) (Table 3).
MT to 83.2 MT during the same period
(Table 2). The world has witnessed Being Asia’s first integrated steel plant
an increasing level of concentration and India’s largest integrated private
in crude steel production – the top 10 sector steel company, TATA Steel of
countries together accounted for 83.9 India stood at the 11th position in 2013
per cent of steel production in 2014, with a production level of 25.3 million
up from 74.8 per cent in 2005. metric tonnes. TATA Steel is also the

Table 3: Major Steel Producing Companies of the World During 2013

Steel Production
Rank Company
(In million metric tonnes)
1 ArcelorMittal 96.1
2 Nippon Steel 50.1
3 Hebei Steel 45.8
4 Baosteel 43.9
5 Wuhan 39.3
6 Posco 39.3
7 Shagang 38.4
8 Ansteel 35.1
9 Shougang 33.7
10 JFE 31.5
11 Tata Steel 25.3
26 SAIL 13.5
Source: Data Derived from World Steel Association; EXIM Bank Research

26
world’s second most geographically exporters of articles of iron or steel
diversified steel producer, with (HS 73) in the world constituted 61.7
operations in over 20 countries and per cent in 2013, with China leading
has commercial presence in over 50 with a share of 18.4%. The other
countries. In 2013, India’s public sector top exporters in this category were
major SAIL occupied the 26th position Germany (10.9 percent), USA (7.1
in the world, with a production of 13.5 percent), Italy (6.6 percent), Japan (4.3
million metric tonnes. percent), South Korea (3.6 percent),
France (3.1 percent), Netherlands
2.3 Major Steel Exporters (2.7 percent), Spain (2.6 percent),
and Taipei China ( 2.3 percent). India
The top 10 exporters of iron and steel ranked 11th in the list of exporters,
in world (HS-72) accounted for a share with a share of 2.4 per cent globally
of 58 per cent in 2013. The global steel in 2013.
exports registered a CAGR of 5.1 per
cent during 2004 and 2013, with the 2.4 Export Orientation of Global
largest exporters of steel - China (9.8 Steel Industry
per cent share in world exports of
steel in 2013) witnessing a CAGR of Export orientation of the world steel
14.4 per cent during the same period industry was increasing over the years,
(Table 4). Japan was the second but gradually coming down, of late.
largest exporter with a share of 9.0 The export orientation of world steel
percent in global exports in 2013. industry had increased from 22.6 per
Germany, South Korea and Russia cent in 1975 to 40.8 per cent in 2000;
were the other main exporters with thereafter it gradually slipped to touch
shares of 7.4 per cent, 5.7 per cent, 27.3 per cent in 2013.
and 5.1 per cent, respectively in 2013.
Amongst the top 10 exporters of iron 2.5 Major Steel Importers
and steel (HS-72), countries exhibiting
significant increase in exports during The top 10 iron and steel importing
the last decade included USA, South countries in the world constituted 46.5
Korea, and the Netherlands, apart per cent of the total world imports in
from China. 2013. China remained the largest
importer of iron and steel in the
On the other hand, world exports of world with a shares of 7.4 per cent in
articles of iron or steel (HS 73) stood at 2013. China was followed by Japan,
US$ 310 bn in 2013, having increased Germany, South Korea and Russia,
from US$ 143 bn in 2004. The top 10 with shares of 6.7 per cent, 5.3 per

27
28
Table 4: Top Exporters of Steel (HS-72) in World (US$ bn)

CAGR:
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2004-13
China 11.5 15.1 25.1 40.0 53.5 13.5 28.9 39.9 37.1 38.6 14.4

Japan 21.2 24.4 26.0 30.1 39.2 28.4 38.9 42.2 39.5 35.3 5.8

Germany 20.5 23.6 28.5 35.7 39.3 23.3 29.4 35.6 31.4 29.1 4.0

South Korea 10.6 12.8 14.0 16.4 21.3 15.5 21.8 27.6 25.4 22.3 8.6

Russia 16.0 17.9 17.9 21.1 28.6 14.7 18.8 22.0 22.6 20.1 2.6

USA 8.9 11.3 12.6 17.1 23.8 15.4 19.8 25.3 22.8 19.7 9.2

Belgium 14.2 16.2 19.5 25.7 27.5 14.6 17.7 22.2 17.9 17.8 2.5

France 13.6 14.3 16.8 20.5 22.2 13.1 16.6 19.3 17.1 15.9 1.8

The Netherlands 7.5 8.4 11.6 14.7 15.3 11.2 16.1 19.6 16.6 14.5 7.6

Ukraine 10.8 11.5 13.1 16.7 23.0 10.3 14.6 18.5 15.3 14.3 3.2

 World 250.2 283.3 329.4 424.4 519.0 277.2 389.1 480.1 428.3 392.7 5.1

Source: Data Derived from ITC-Trade Map; EXIM Bank Research

 Exhibit 5: Export Orientation of Global Steel Industry

As accessed in February 2015

cent, 5.0 per cent, and 4.6 per cent,

Canada and France (at 3.7 per cent
respectively.
each), UK (2.9 per cent), South Korea
(2.7 per cent ), Netherlands (2.3
CAGR of import demand of Russia and
per cent), and Japan (2.1 per cent).
Belgium were the highest among the
Developing countries figuring in the
top 10 importers during the period 2004
top 10 importers list are China with a
and 2013. Russia’s imports recorded a
share of 3.3 per cent, and Mexico with
CAGR of 9.9 per cent, followed closely
a share of 2.8 per cent. In terms of
by Belgium which grew at 8.8 per cent.
import growth, South Korea exhibited
The Netherlands and Chinese imports
a significant demand at a CAGR of
registered CAGRs of 8 per cent and
21.8 per cent during 2004 and 2013.
6.3 per cent, respectively. While most
India does not figure in the list of top
other countries showed a moderate
10 importers of articles of iron or steel
growth, Germany was the only country
(HS 73).
among the top 10 importers to record
a negative CAGR in imports of (-)1.1 Prices
per cent (Table 5).
2.6 Steel Price
World imports of articles of iron or steel
(HS 73) were largely to the developed As demand for steel weakened and
countries– USA (with a share of 11.7 a huge overcapacity hovered over
per cent), Germany (7.2 per cent), the global steel industry, raw material

29
30
Table 5: Top Importers of Steel in World (HS-72) (US$ bn)

CAGR:
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2004-13
China 17.1 21.9 26.9 35.4 40.6 21.4 29.4 38.2 31.7 29.7 6.3

Japan 24.0 23.6 30.7 27.1 33.6 13.1 22.5 29.6 30.4 27.0 1.3

Germany 23.7 26.2 20.0 23.0 24.5 27.8 25.3 28.4 23.3 21.4 -1.1

South Korea 14.1 16.4 16.9 23.1 35.8 18.4 24.9 28.4 23.8 20.4 4.2

Russia 8.0 9.5 11.5 16.2 23.2 11.3 16.1 20.4 19.6 18.7 9.9

USA 16.2 17.6 22.5 29.2 33.0 13.1 19.3 24.9 18.5 18.3 1.4

Belgium 6.4 8.4 7.1 12.2 13.5 6.9 11.0 13.1 14.0 13.7 8.8

France 12.7 13.2 15.8 19.9 22.2 11.4 14.5 18.1 14.3 13.7 0.8

The Netherlands 6.2 6.7 9.2 12.3 13.8 9.4 12.9 16.3 13.9 12.4 8.0

Ukraine 9.1 9.5 13.0 18.5 19.6 9.3 12.3 16.6 12.3 12.4 3.5

 World 264.2 299.6 339.4 443.2 545.9 291.8 395.5 486.7 438.3 404.0 4.8

Source: Data Derived from ITC-Trade Map; EXIM Bank Research

prices eased. The global composite Price in May 2015 stood at US$ 60.2
carbon steel prices, which stood at per dry metric tonne, as compared
US$ 686/tonne in June 2013, touched to US$ 100.5 per dry metric tonne
a peak at US$ 726/tonne in January a year ago. Prices have dipped
2014; owing to a demand-supply significantly since May 2010 when it
mismatch, the prices plunged to hovered around US$ 161.35 per dry
US$ 592/tonne in February 2015. This metric tonne.
was the tenth consecutive decline in
global steel prices since May 2014 In recent months, deteriorating Chinese
(Exhibit 6). steel demand and deleveraging
by traders and Chinese steel mills
has dragged the metal prices. The
2.7 Iron Ore Price
withdrawal of a stimulus package and
the Chinese Government’s efforts
Iron ore is an important raw material
to make the economy consumption-
for steel production. International
driven from an investment-driven one
spot prices of coking coal and iron
will further ease steel demand and
ore corrected significantly. In 2013,
consequently the metal’s production.
international spot prices of coking coal
increased by 5.2 per cent y-o-y to an In the past, there were two major
average of US$ 135 per tonne in 2013 iron ore producers in Australia, Rio
from an average of US$ 128 per tonne Tinto and BHP Billiton. They have
in 2012. now been joined by a third producer,
Exhibit 6: Global Composite Carbon Steel Prices (US$ / tonne)

31
 Exhibit 7: Global Iron Ore Prices (US$ per Dry Metric Tonne) and Change in Price

Fortescue Metals. These three have constricted iron ore supply. That
producers are anticipated to provide along with falling global prices, has
for bulk of the increase in iron ore stoked rising imports in the country as
supply over the next few years. Brazil, a deepening shortage at home forces
another significant contributor to iron steelmakers to turn overseas for the
ore in the world, is suffering from a raw material. Gathering momentum
combination of project delays and in Indian imports may absorb some
infrastructure bottlenecks and has of the global surplus of iron ore and
thereby experienced restrictions on help stabilise prices that have been
iron ore supplies in 2013. However, hammered by slowing demand from
outside Australia and Brazil, growth the top buyer China.
in supply is expected to be limited. It
may be noted that, Australia holds the Select Trends in World Steel
position as one of the lowest cost iron Manufacturing
ore producers globally.
2.8 Product Development
As mentioned, global iron ore prices
have touched US$ 51.1 a tonne as on There are thousands of different types
April 2015 its lowest level since 2009 of steel, designed to meet the specific
(Exhibit 7). In India, mining curbs due needs of end users. Many of the
to court action against illegal mining products were developed in the last

32
ten years. Safety requirements, cost with the national Governments to
restrictions, structural performance undertake R&D projects addressing
demands innovations in steel a broad range of challenges. One of
production. In addition, increasing the important challenges of the steel
environmental pressures are leading manufacturing is yield loss. R&D
to innovation in steel manufacturing projects are being undertaken by
technology, as also design and steel majors in identifying yield saving
applications in end user industries. opportunities in steel manufacturing;
For example, advanced high-strength improvements in operating techniques
steels are helping carmakers meet the and practices with the objective of
performance demands with affordable reducing the yield losses; improvement
solutions. With the rising climate of fuel efficiency and productivity
change concerns, the next generation by capturing the heat-value of by-
automobiles would include alternative product gases and optimising its
powertrains, such as hybrids and mix of feedstocks, and using proper
fuel cells. Steel producers have process equipments that reduces the
developed Ultra Light Steel Auto yield losses.
Body (ULSAB), which has achieved
25 per cent reduction in vehicle mass, 2.10 Accident-Free Steel
re-establishing the position of steel
as a viable light-weight material for Many steel companies in the world
the automotive market. Similarly, the are improving their health and safety
World Steel Association has initiated performance in the plants, and some
a new project called ‘Living Steel’ to of them have achieved production
stimulate innovation in design, supply
without any lost-time injuries for many
and use of steel in construction.
years. In such companies too, there
is a new thinking which clearly states
2.9 Technology Development
that accidents are avoidable and
‘accident free’ steel is the practical goal
Modern steelmaking relies on advanced
of the future. These companies are
technologies. International competition
developing and establishing a safety
is so fierce in the steel sector that even
culture within the organisation and
a small technological difference would
generate a competitive advantage. managing safety from a behavioural
Steel companies all over the world perspective as a powerful approach to
are investing in state-of-the-art the management of safety. The firms
steelmaking systems and practices have also developed a safety policy
to improve their operations and yield. for contractors, as there is widespread
Thus, steel majors are joining hands use of contractors in steel plants.

33
 2.11 Sustainable Steel details out some of the best available
technologies and solutions that can be
According to Inter-Government Panel implemented at steelmaking facilities
on Climate Change (IPCC), the steel to increase energy efficiency and
industry accounts between 3-4 per improve environmental performance.
cent of total world greenhouse gas
emissions. On an average, 1.7 tonnes Number of different national
of carbon di-oxide are emitted from approaches to emissions reductions
every tonne of steel produced. It was is being adopted. Japanese steel
also estimated that over 90 per cent industry is engaged in voluntary
of steel industry emissions come action progranmme comprising a
from iron production in the countries range of efforts from international
of Brazil, China, India, Japan, Korea, technical cooperation to research
Russia, Ukraine and USA, including and development into further by-
EU-27 region. Over the years, the steel product uses. The steel industry in
industry has achieved technological USA has signed a voluntary climate
advancements that have enabled vision programme with a commitment
substantial reduction of emissions from of improving energy intensity by 10
steel production. These achievements per cent using the year 2002 as base
include, enhanced energy efficiency in line. The steel industries in USA,
the steel making process, improved Japan, Korea, Australia and Canada
recycling of steel products, improved are also involved in the Asia-Pacific
use of by-products from steel making, Partnership on Clean Development
and better environmental protection and Climate, which also involves China
techniques. and India. World Steel Association is
adopting the approach of collection of
World steel majors are continually carbon emission data from major steel
investing to find solutions for cleaner producing countries and benchmarking
production. These may include, to make improvements in commitments
changes in process or manufacturing at national or regional level.
technology, change of input materials
(for example, using raw materials 2.12 Life Cycle Assessment
that are low in sulphur), reuse and
recycling of materials onsite, improved Life Cycle Assessment (LCA) is one of
housekeeping, and training. Steel Task the tools increasingly being used while
Force of the Asia-Pacific Partnership considering environmental issues
on Clean Development and Climate associated with the production, use,
has developed a State-of-the-Art and disposal and recycling of products,
Clean Technologies Handbook, which including the original source-materials

34
 Exhibit 8: Outlook by Apparent Steel Use (MT) – 2015 and 2016

Source: World Steel Association

35
 with which steel is made. LCA of a late 2009 and continued to grow
steel product looks at resources, thereafter in sync with the global
energy and emissions, from the raw economic recovery. Demand for steel
material extraction phase to its end- benefited from growth in the develop-
of- life phase, including recycling and ing economies that helped counter the
disposal. LCA can be used to identify sluggishness in developed countries.
priorities for improvements in process Asia, particularly China, continued to be
operations and product design and the principal growth driver. Demand for
development. Global steel makers are steel products, nonetheless, remained
increasingly developing and supporting below pre-recession levels.  In 2013,
the use of a consistent, rigorous and the continuing Eurozone sovereign
transparent LCA methodology to debt crisis, economic stagnation or
enable society and regulators to make slow growth in developed economies
informed choices based on the real and a cooling of emerging market
environmental impact of products
economies had an adverse impact on
and processes. Steel is 100 per cent
the industry which spilled to 2014.
recyclable, which means it can be
reprocessed into the same material
Expanding steel production in China,
of the same quality again and again.
the world’s largest producer and
Recycling accounts for significant
consumer of steel, even as domestic
energy and raw materials savings:
consumption tapers, has been the
more than 1,400 kg of iron ore, 740 kg
single biggest drag on global prices.
of coal, and 120 kg of limestone are
Add to this, the growth in the Chinese
saved for every tonne of steel scrap
made into new steel. economy, which in recent years has
been one of the main demand drivers
OUTLOOK for steel, slowed. These challenging
economic conditions continued into
Despite its size, the steel industry 2014, hindering the industry growth. 
remains relatively fragmented. It
is also highly cyclical and has on While the global steel demand-supply
intensely competitive nature.  After gap has narrowed since the slump
witnessing sturdy growth for most of created in the post-2008 period,
the initial phase in the last decade, the production still exceeds demand.
global steel industry suffered a setback Worldsteel forecasts that in 2015, the
due to the recession in 2008 as world steel demand will reach 1,544
consumers utilized existing inventories MT. It further forecasts that world steel
rather than buying new stocks. The demand will grow by 1.4% and reach
industry witnessed a turnaround in 1565 MT in 2016.

36
3. Indian Scenario

Evolution of Indian Steel Industry set up in the public sector at Bhilai

(Madhya Pradesh), Durgapur (West
The Indian iron and steel industry Bengal) and Rourkela (Orissa), with
is almost a century old. Iron Work a capacity of one million tonnes
Company established the first iron and each. Subsequently, two more public
steel company at Kulti (West Bengal) in sector integrated steel plants were
1870. However, large-scale production set up at Bokaro (Jharkhand) and
started only after setting up of Tata Vishakapatnam (Andhra Pradesh).
Iron and Steel Company (TISCO), in
1907. At the time of independence in Since the time public investment in
1947, India had a small capacity of steel sector started, market protection
iron and steel production of about 1 had also started for the indigenous
million tonne per annum. During that industry by way of reservation (large
time, the entire capacity of the iron scale integrated capacity of above 1
and steel industry was in the private million for public sector), dual pricing
sector. Infact the second oldest steel system with distribution controls
plant in India, the Indian Iron & Steel for both public and private sector,
Company Limited (IISCO), established protection from import competition
in 1918 in Burnpur, West Bengal, was through tariff barriers as well as
then listed with the London Stock quantitative restrictions and import
Exchange. Later it changed hands licensing.
and is currently owned by public sector
steel behemoth, the Steel Authority of Apart from policy related protection,
India (SAIL). the industry was given protection in
terms of market and prices through
The thrust to the capital-intensive administered pricing mechanism. There
industries, especially setting up of was freight equalization mechanism to
steel plants was given in the second make the prices uniform irrespective of
and third five-year plan periods. the distance of deliveries. The basic
Three integrated steel plants were selling price of steel was administered

37
 and fixed based on the normative cost distribution and capacity, withdrawal
of production plus return on capital. of import and export restrictions,
There were also cess and levies like etc.). In this decade, the steel sector
Joint Plant Committee (JPC) cess, added around 12 million metric tonnes
Steel Development Fund (SDF) levy, capacity, from 21 new projects.
import pool fund etc. Import was
canalized and a fund was created for 3.1 Production
mopping up the balance between the
lower international procurement prices Crude steel production in India
with higher domestic sales prices. amounted to 81.54 MT in 2013-14,
registering a growth of 4.0 percent as
In the seventies, the industry witnessed compared to the previous year. The
emergence of few small-scale production for sale of total finished steel
secondary steel producers, (electric (alloy + non-alloy) in the country stood
arc furnace and induction furnace
at 85.05 MT in 2013-14 as compared
units) in the private sector to bridge the
to 14.23 MT in 1991-92 – an increase
gap between rising domestic demand
of nearly 6 times. The high share of
and stagnating supply from the existing
the Majors (like Essar, JSW Ispat,
integrated plants. Encouragement to
JSWL) and Other Producers (Electric
private sector was given due to slow
Arc Furnace, Induction Furnace, Corex
down in the public investment as a
- Basic Oxygen Furnace, etc.) in total
result of resource crunch and less plan
finished steel production for sale is
allocation for capital investment. The
semi-finished ingots/billets produced largely due to substantial availability of
by this sector led to the commissioning raw materials like sponge iron, as well
of a large number of re-rolling units to as due to the expansion of capacities
convert semi finished steel bars and and emergence of new units in these
rods used mainly in the construction segments.
industry.
The total production for sale of pig iron
The Indian steel sector was the first was 7.29 MT in 2013-14 as compared
core sector to be completely freed from to 1.59 MT in 1991-92. Earlier, pig
the licensing regime and the pricing and iron was produced primarily by the
distribution controls. Since 1991, the integrated public sector steel plants,
sector witnessed reforms increasingly SAIL and RINL. However, today, the
in every aspect. The sector was open private sector accounts for over 90%
to private investment with large-scale of total production for sale of pig iron
deregulation (decontrol of price, in the country.

38
 Exhibit 9: Production for Sale of Finished Steel (Million Tonnes)

In the case of DRI (direct reduced Coils, Galvanised Plain / Galvanised

iron), India is one of the largest Coil (GP/GC) Sheets were the ones
producers in the world. From a mere exhibiting highest growth rates of
1.31 million tonnes of production 11.8 per cent, 11.8 per cent, and 11.3
in 1991-92, India’s DRI production per cent, respectively. However, HR
reached 14.972 million tonnes in 2013- sheets showed a significant decline
14 after touching a high of 25.081 on year on year basis by 27.4 per cent
million tonnes in 2010-11.
(Table 6).

The categorywise production of pig

iron and finished steel in India during As per the latest data available for
the period 2013-14 shows that rods/ 2014 from World Steel Association,
bars and HR Coils/Strips were the India  produced 83.2 million tonne
largest produced categories with of crude steel, up 2.5 per cent over
shares of 35 per cent and 23 per cent, 81.2 MT in the year-ago period. In
respectively. As far as growth amongst comparison, global production stood
these categories are concerned, at 1662 MT, witnessing an increase of
segments like structurals, CR Sheets/ just 0.8 per cent over previous year.

39
 Table 6: Category-wise Production of Pig Iron and Finished Steel in India
(‘000 tonnes)

Category Total Production for Sale

2013-14 2012-13
Pig Iron 7287 6870
Sponge Iron 14972 14325
Semis 30288 31380
Rods/Bars 30019 28794

HR Coils/Strips 19466 19390

Structurals 6632 5932

CR Sheets/Coils 8554 7654

GP/GC Sheets 6996 6287

Plates 3992 4162

Pipe (large dia) 2021 2006

Railway materials 883 938

HR Sheets 403 555

Tin plate 300 301

Electrical steel sheets 156 155

TMBP Coils 5 5

Total (Finished steel Non – Alloy) 79444 76195

Finished steel (Alloy)

Non-Flat 3659 3698

Flat 1951 1788

TOTAL (Finished Steel Alloy) 5610 5486

TOTAL (Finished Steel) 85054 81681

Source: Data Derived from Joint Plant Committee; EXIM Bank Research

HR : Hot Rolled
CR : Cold Rolled
GP : Galvanised Plain
GC : Galvanised Coil
TMBP : Tin Mill Black Plate

40
Among major steel producing countries, (12 per cent) and the pipes  & tubes
only South Korea and Russia were industry (9 per cent) (Exhibit 10).
ahead of India in terms of growth
rates at 7.6 per cent and 2.8 per In tune with the economic gloom,
cent, respectively. The US exhibited India’s finished steel consumption grew
recovery and grew at 1.7 per cent by a tepid 0.6 per cent in 2013-14 over
(88.3 MT productions during 2012-13. Domestic real consumption
2014 compared to 2013). Japan of total finished steel stood at 73.89
showed a growth of 0.2 per cent million tonnes (MT) during 2013-14.
(110.7 MT production during 2014) This was largely because of the low
and Germany grew at 0.7 per cent quarterly growth rates of GDP during
(42.9 MT production during 2014). the year 2013-14 with full year figure
at 4.7 per cent, along with a steady
3.2 Consumption Pattern decline in growth rate of IIP in 2013-14
with annual growth declining by 0.1 per
Among end-user sectors, infrastructure cent over 2012-13, and steep decline
and industrial construction together noted in sectors like capital goods,
continued to account for about 40 manufacturing, consumer durables,
per cent of total steel consumption motor vehicles, trailers & semi-trailers,
in 2013-14, followed by automobiles and slow and low growth in sectors
Exhibit 10 : Steel Consumption Pattern in India : 2013-14

41
 like basic goods and intermediate steadily in absolute terms, yet the year
goods. The slow down in the rate of on year growth rates have dropped
investment as indicated by the growth consistently. The drop in later days
rate of gross fixed capital formation are attributable to the onset of the
in GDP (at 32.3 per cent of GDP in slowdown in the Indian economy
2013-14, down from the 33.9 per cent itself, with steel consumption finally
of GDP of 2012-13) also impacted the hitting 0.6 per cent growth in 2013-14,
consumption pattern of steel. marginally up from the decadal low
reached in 2008-09.
The trend of last 6 years in domestic
steel consumption indicates that An analysis of the 5 year period before
though the marginal growth rate of 0.43 the global financial crisis and after the
per cent in 2008-09 may be attributed crisis shows interesting results. The
to the impact of the recession of 2008, trend in growth rate in domestic steel
markets have however recovered since consumption in the five year periods,
then, pushing up steel consumption preceding (2003-04 and 2007-08)
growth to as high as 13.3 per cent and post recession of 2008 (2009-
in 2009-10 (a growth rate which to 10 to 2013-14) indicates clearly the
some extent can be attributed to base dampening effect of the twin effects
effect). of recession of 2008 and slowdown
in domestic economy in the post-
Nonetheless, the volume of steel recession period (7.2 per cent average
consumed in the economy has grown annual growth) compared to the pre-

Table 7: Total Finished Steel Consumption

Year Quantity (MT) Percentage Change (y-o-y)

2008-09 52.35 0.43
2009-10 59.34 13.3
2010-11 66.42 11.9
2011-12 71.02 6.9
2012-13 73.48 3.5
2013-14 73.89 0.6
Source: Data Derived from Joint Plant Committee; EXIM Bank Research

42
 Table 8: Consumption Pattern of Steel in India: Pre and Post-Recession

Year AAGR of Consumption

of Steel in India
2003-04 and 2007-08 5 years preceding recession of 2008 11.2

2008-09 Crisis period 0.4

2009-10 and 2013-14 5 years post-recession of 2008 7.2

Source: Data Derived from Joint Plant Committee; EXIM Bank Research

recession five yearly average growth long/non flat steel (56 per cent) during
of 11.2 per cent (Table 8). the year as compared to the last year
(Table 10).
3.3 Category-wise Real Consump-
tion For non-alloy steel, contribution of the
Category-wise real consumption of non-flat segment stood at 37.61 MT, up
total finished steel was led by non-flat y-o-y by 3.4 per cent and that of the flat
steel (41.28 MT) which recorded a segment (after accounting for double
growth rate of 2.6 per cent on year on counting) stood at 31.70 MT, up
year basis, while growth rate declined y-o-y by 1.5 per cent, taking total
for flat steel consumption (32.61 MT) non-alloy consumption (after double
by 2.0 per cent during 2013-14. This counting) to 69.311 MT. The remainder
was also reflected in the respective was the contribution of alloy segment,
shares, with the share of flat steel which reported a negative growth of
in total consumption (44 per cent) 21.8 per cent during this period and
dropping marginally in 2013-14 dragged down overall consumption
accompanied by a gain in the share of growth trends in 2013-14.

Table 9: Real Consumption of Total Finished Steel (Alloy + Non-alloy)

Year 2012-13 2013-14 Percentage Change

(y-o-y)

Total Finished Steel, of which 73.48 73.89 0.6

Non-flat steel 40.22 41.28 2.6

Flat steel 33.26 32.61 (-) 2.0

Source: Data Derived from Joint Plant Committee; EXIM Bank Research

43
 In the non-alloy, non-flat segment, the mixed with declines noted for plates
major contributor to consumption was (4.32 MT, down by 11.7 per cent), HR
bars and rods (30 MT; y-o-y growth of coils / strips (19 MT, down by 3.5 per
2.3 per cent). For the major categories cent), while consumption rose for CR
in the flat segment, the picture was Sheets / Coils (9.4 MT, up by 7.8 per

Table 10:Category-wise Real Consumption Trends (‘000 tonnes)

Percentage
Category 2012-13 2013-14 Change
(y-o-y)
Rods/Bars 29445 30127 2.3
Structurals 5987 6616 10.5
Railway materials 946 870 -8.0
Non-Flat (A) 36378 37613 3.4
HR Coils/Strips 19817 19124 -3.5
CR Sheets/Coils 8807 9425 7.0
GP/GC Sheets 5230 5637 7.8
Plates 4891 4317 -11.7
Pipe (large dia) 2046 2007 -1.9
HR Sheets 485 444 -8.5
Tin plate 435 418 -3.7
Electrical steel sheets 541 499 -7.8
TMBP Coils 5 6 20.0
Flat (B) 42338 41950 -0.9
Less: Double Counting (C)* 11094 10252 -7.6
Flat steel after double discounting (D) 31244 31698 1.5
Total: Non-Alloy (A+D): (E) 67622 69311 2.5
Total: Alloy (F) 5860 4584 -21.8
Total Finished Steel (E+F) 73482 73895 0.6

* A significant quantity of steel is counted twice. For example, steel maybe bought for value
addition such as galvanisation, and then resold in the market as premium steel.
Source: Data Derived from Joint Plant Committee

HRC : Hot-Rolled Coil

CRC : Cold Rolled Coil
GP/GC : Galvanised Plain/Galvanised Coil
TMBP : Tin Mill Black Plate

44
cent) and GP/GC (5.6 MT, up by 7.8 consumption (in terms of total finished
per cent) during 2013-14 as compared steel) has grown from 45 kg in 2008-09
to 2012-13. to 59.3 kg in 2012-13 before falling to
59 kg in 2013-14.
3.4 Per Capita Steel Consumption
Though this rise is commendable,
On account of the steady growth in yet the fact remains that compared
the domestic steel consumption, India to global average (222 kg) or even
India’s global peers (China 489 kg),
became the third largest consumer of
per capita consumption of steel is
steel globally in 2009, and continued
significantly low in India. One of the
to remain so till 2014. China was the
main reasons of such an outcome
largest consumer with a consumption
being the extensive use of steel in
of 711 MT in 2014. large scale infrastructure activities
and other end-use segments like
In tune with the absolute levels reached manufacturing in developed countries
and the prevailing economic and steel or even in countries like China, South
conditions, India’s per capita steel Korea vis-à-vis India.

Table 11: Investments in Steel Sector

New investment projects

Year Investment projects completed
announced
Rs. million Numbers Rs. million Numbers
2004-05 1,122,248.10 57 11,445.00 12
2005-06 2,259,422.10 78 160,570.10 28
2006-07 1,800,798.40 84 56,573.80 30
2007-08 1,447,529.40 79 237,583.80 49
2008-09 1,349,091.30 32 109,812.20 27
2009-10 2,859,548.30 39 151,352.90 20
2010-11 1,368,959.30 25 292,916.80 29
2011-12 413,042.20 21 422,631.20 27
2012-13 437,578.00 12 53,372.20 11
2013-14 752,424.00 15 65,796.90 12
Numbers refers to the number of projects for which cost details are available
Source: Data Derived from Joint Plant Committee; EXIM Bank Research

45
 3.5 Investments in Steel Sector number of projects completed however
in terms of value have witnessed an
Investments announced in steel sector increase from Rs. 11,445 million to Rs.
while having seen a decrease from
65,797 million during the same time
Rs. 1,122,248 million in 2004-05 to
Rs. 752,424 million in 2013-14, the period (Table 11).

Table 12: Export of Iron and Steel (In ‘000 tonnes)

Finished
Year Pig Iron Semi-Finished Total Steel
Carbon Steel
1991-92 - 5 368 373
1992-93 16 154 741 911
1993-94 620 585 1020 2225
1994-95 466 399 873 1738
1995-96 502 395 925 1822
1996-97 451 300 1622 2373
1997-98 785 503 1880 3168
1998-99 281 174 1770 2225
1999-00 290 328 2670 3288
2000-01 230 195 2805 3230
2001-02 242 270 2730 3242
2002-03 629 460 4506 5595
2003-04 576 701 5221 6498
2004-05 393 261 4381 5035
2005-06 300 350 4350 5000
2006-07 707 665 4893 6265
2007-08 560 400 4600 5560
2008-09 350 746 4437 5533
2009-10 362 625 3251 4238
2010-11 358 350 3637 4345
2011-12 491 201 4587 5279
2012-13 414 144 5368 5926
2013-14 943 486 5594 7023
Source: Data Derived from Joint Plant Committee; EXIM Bank Research

46
3.6 Exports and Imports of Iron In India, imports of carbon steel
and Steel touched 5.4 million tonnes in 2013-14,
whereas the import of pig iron was
Although India started exporting steel very low constituting 34,000 tonnes.
way back in 1964, exports were not However it may be noted that import
regulated and depended largely on of steel reached a high of 7.9 million
domestic surpluses. However, post- tonnes the previous year (2012-13). In
liberalization, export of iron and steel the year 2007-08, India became a net
recorded a quantum jump in India. importer of iron and steel for the first
Subsequently, the rapid growth of time in the post liberalization period.
domestic steel demand has led to a
decline in the rate of growth of steel In terms of value, India’s exports of
exports from India to ensure that iron and steel in the year 2008-09
domestic requirements are adequately was US$ 13.3 billion, and India’s
met. imports of iron and steel were valued at
US$ 13.9 billion, leading to a trade
During 2013-14, India’s exports were deficit of US$ 0.6 billion under this
around 7 million tonnes, of which category. Export and imports figures
finished carbon steel constituted herein are calculated considering
92%, whereas pig iron and semi- summation of HS Code 72 (iron and
finished iron together constituted 8% steel) and HS Code 73 (articles of
(Table 12). iron or steel). After having witnessed

Exhibit 11: India’s International Trade in Iron and Steel (US$ Bn)

47
 a trade deficit for a number of years, quite diversified across regions and
in 2013-14 India displayed a trade countries in 2014-15 (Table 14).
surplus of US$ 3.3 billion in iron and
steel. However, in 2014-15, India However, India’s exports of articles of
exhibited a marginal trade deficit of iron and steel (HS code 73) remained
US$ 35 mn in iron and steel (Table concentrated within USA and UAE, both
13). during 2003-04 and 2014-15, with their
cumulative shares being 34.7 per cent
India’s export markets for steel are in 2003-04 and 31.7 per cent in 2014-15
well diversified and less concentrated (Table 14).
as compared to imports. While India’s
exports of iron & steel (HS Code 3.7 Profitability
72) during 2003-04 was hugely
concentrated to China, the share While steelmakers can be classified
declined drastically in 2014-15. based on multiple factors such as
Unlike 2003-04, India’s exports of scale of operations, product profile and
iron and steel (HS code 72) seemed the level of raw material integration, it

Table 13: Trade Balance in India’s Steel Trade (Value in US$ Mn)
HS Code: 72 (Iron & Steel): A
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Exports 7533 4516 7139 8302 8090 9223 8684

Imports 10265 8814 11010 13646 13616 9110 12342

Trade
-2732 -4298 -3871 -5344 -5526 113 -3658
Balance
HS Code: 72 (Iron & Steel): B

Exports 5783 4081 6657 7048 7436 6807 7601

Imports 3667 2793 3617 4529 4101 3596 3978

Trade
2116 1288 3040 2519 3335 3211 3622
Balance
Total: A+B

Exports 13316 8597 13796 15350 15526 16030 16284.75

Imports 13932 11607 14627 18175 17717 12706 16320.24

Trade
-616 -3010 -831 -2825 -2191 3324 -35.49
Balance
Source: Data Derived from Ministry of Commerce; EXIM Bank Research

48
 Table 14: Top 10 Destination of India’s Exports: 2003-04 and 2014-15

HS Code 72: Iron & Steel HS Code 73: Articles of Iron & Steel
(per cent share) (per cent share)
2003-04 2014-15 2003-04 2014-15
China 23.0 USA 8.1 USA 21.6 U S A 22.5
USA 7.5 Iran 7.5 UAE 13.1 UAE 9.2
UAE 4.9 UAE 7.4 UK 6.7 Saudi Arabia 8.0
Thailand 4.7 Italy 6.4 Bangladesh 5.4 Germany 6.1
Italy 4.3 Nepal 6.0 Germany 4.1 UK 4.9
Iran 4.1 South Korea 3.7 Singapore 2.5 Italy 2.7
South Korea 3.7 Belgium 3.2 Nigeria 2.5 Canada 2.3
Sri Lanka 3.6 Thailand 3.0 Australia 2.2 The Netherlands 1.7
Nepal 3.1 Japan 2.8 Saudi Arabia 2.1 France 1.7
Indonesia 3.0 Bangladesh 2.8 Canada 2 Iran 1.6
Source: Data Derived from Ministry of Commerce; EXIM Bank Research

is the lend of raw material integration captive mines, and non-integrated

that is critical  to the margins they players. Small & mid-sized players,
earn. Large steelmakers have  and on the  other hand, mainly produce
will continue to have a  dominant long steel, which requires lower capital
share in steel production. These investments. Most of these players are
players  mainly produce flat steel, non-integrated and buy key inputs from
which is capital intensive. Even among
the open market.
large players, the level of integration
varies, depending on accessibility to
3.8 Current Outlook
iron ore mines. Several players have
captive access to iron ore.
Domestic steel demand growth is
expected to remain subdued in 2014-15
Raw material integration is significant
and 2015-16 largely owing to execution
because raw materials - iron ore and
coking coal - constitute 60-70 per delays in construction projects and
cent of production costs for finished lower demand for automobiles and
steel. Hence,  players with captive consumer durables. Over the longer
mines possess better operating term steel demand is expected to grow
leverage and pricing flexibility, as at a brisk pace, as growth in key end-
compared to integrated players without user sectors revives.

49
 Exhibit 12: Structure of the Steel Industry

A slowing economy continued to Among end-user sectors, infrastructure

curtail domestic steel demand in and industrial construction together
2013-14. Finished steel consumption continued to account for about 40 per
is estimated to have grown by a muted cent of total steel consumption in 2013-
0.6 per cent y-o-y; the lowest in  5 14, followed by automobiles (12 per
years, to 73.89 million tonnes during cent) and the pipes & tubes industry
2013-14.  Over 2009-10 to 2013-14,
(9 per cent). Domestic demand  for
demand registered a CAGR of 7.2 per
steel, especially in the construction
cent, spurred by rising investments
and infrastructure sectors,  has been
in the infrastructure and construction
affected by delays in project execution,
sectors, and a strong growth in sales of
owing to environmental clearances.
capital goods and automobiles. India
however remained one of the world’s Slowing economic growth has also
largest producer and consumer of put the brakes on consumption driven
crude steel in 2014, despite the sectors such as the automobiles
sluggish demand. and consumer durables. Aggregate

50
 Exhibit 13: Flat Steel Consumption: Key End-User Industries

investments are expected to grow at a the construction space are also likely
sluggish pace, impacted by a slowdown to grow at a muted pace in 2013-14
in industrial capex and infrastructure and 2014-15. However, it is expected
investments.  Implementation of that industrial and infrastructure
projects in key infrastructure segments investments will improve gradually
like power, irrigation and roads is during the next five years.  It is
expected to suffer during the year on therefore believed that growth will be
account of land acquisition issues, driven by key end-user sectors such
delays in clearances and the strained as construction, infrastructure and
finances of companies. Investments in automobiles.

51
 4. Product and Market
Identification of Steel
Products Overseas

4.1 COMPETITIVENESS OF INDIA’S markets and products where India

EXPORTS has been performing well, as well as
identifying the areas where producers
The year 2013-14 was a turnaround have lost ground and success has
year with exports exceeding imports been limited. This will be a necessary
after a long hiatus. For this trend to first step towards identification of
continue, it might be essential for areas where Indian companies could
domestic producers to expand their
potentially expand their presence.
supply base into overseas markets.
Currently, India’s steel production is
4.2 Methodology:
largely geared towards the domestic
market, with only a small share being
Revealed Comparative Indices are
exported. The country has significant
used to identify categories of exports in
comparative advantage in several
which an economy has a comparative
steel products, but has not been able
to leverage it to the fullest in overseas advantage by way of comparison of
markets. the country’s trade scenario with the
world scenario. The basic assumption
The present section provides an underlying the concept of revealed
analysis of iron and steel products comparative advantage is that trade
and markets where the country profile reflects the inter-country
has demonstrated comparative differences in terms of relative costs
advantage. Quantification of as well as non-price aspects. As per
comparative advantage over a period Balassa’s (1965) measure, index for
of time will help in understanding the country i for commodity j is-

52
 (Xij/Xi) Xrj: exports from region r of
RCAij =
(Xwj/Xw) commodity j
Where,
Xr: total exports from region r
Xij: exports from country i of
commodity j
The normalized revealed comparative
Xi: total exports from country i advantage (NRCA) index has been
Xwj: total world exports of demonstrated to reveal the extent
commodity j of comparative advantage that a
country has in a commodity more
Xw: total exports from world
precisely and consistently than
The RCA index ranges from 0 to other alternative RCA indices in the
infinity, with 1 as the break-even literature. NRCA can be defined in the
point. That is, an RCA value of less following manner:
than 1 means that the product does
not have a comparative advantage, RCAij(or RCAijr) -1
NRCAij =
while a value above 1 indicates RCAij(or RCAijr)+1
that the product has a comparative
advantage. NRCA ranges from -1 to 1 with 0
as the break-even point. That is, an
In order to enable disaggregation of NRCA value of less than 0 and greater
the analysis of revealed comparative than -1, means that the product has
advantage at the regional and bilateral
no export comparative advantage,
levels, the above equation is adapted
while a value above 0 and less than
as follows3:
1, indicates that the product has a
comparative advantage. NRCA for
RCA = (Xij/Xi)
ijr India’s exports is given in Annexure 2
(Xrj/Xr)
for products at HS-6 digit level.
Where,
Xij: exports from country i of For the purpose of analysis, iron and
commodity j steel exports have been divided into
Xi: total exports from country i six categories (at HS-4 digit level) as

Giancarlo Gandolfo (2014), International Trade Theory and Policy. Springer Berlin
3

Heidelberg

53
 Table 15: Categorization of Iron and Steel HS codes

Categories HS Codes
Primary Materials; Products in
7201, 7202, 7203, 7204, 7205
Granular or Powder Form
7206, 7207, 7208, 7209, 7210, 7211, 7212, 7213, 7214,
Iron and Non-Alloy Steel
7215, 7216, 7217
Stainless Steel 7218, 7219, 7220, 7221, 7222, 7223
Other Alloy Steel; Hollow Drill
Bars and Rods, of Alloy or Non- 7224, 7225, 7226, 7227, 7228, 7229
Alloy Steel
Articles of Iron and Steel (Other 7301, 7302, 7307, 7308, 7309, 7310, 7311, 7312, 7313,
than Tubes, Pipes and Hollow 7314, 7315, 7316, 7317, 7318, 7319, 7320, 7321, 7322,
Profiles) 7323, 7324, 7325, 7326
Tubes, Pipes and Hollow
7303, 7304, 7305, 7306
Profiles

given in Table 15. The total number as reflected in the NRCA index,
of products analysed at HS-6 digit has increased in 47 percent of the
level are 288. Regions of Africa, Asia, products that it exported globally,
Europe, Latin America, North America while it has decreased in the remaining
and Oceania have been taken into 53 percent of the products. Africa,
consideration. Asia, Europe and North America have
all witnessed the share of products
4.21 Regional and Overall registering an exercise in NRCA being
Competitiveness of India’s Iron lower than the share of products
and Steel Exports registering a decline in NRCA during
this period. Oceania was the only
Over the period, 2008-2012, India’s region to have exhibited an opposite
competitiveness in iron and steel trend (Exhibit 14).

54
 Exhibit 14: Movement in NRCA across Regions for all Iron and Steel Products over
the Period 2008-12

Source: PCTAs, EXIM Bank Research

55
 4.22 Regional and Overall products exported by it globally, while
Competitiveness of India’s Exports it has decreased in 53 percent of
of Articles of Iron and Steel (other the products. In the regions of Latin
than tubes, pipes and hollow America and Oceania, the share of
profiles) products registering an increase in
NRCA is greater than those recording
Over the period 2008-2012, India’s a decline. The share of products
competitiveness in the category witnessing an increase in NRCA
‘Articles of Iron and Steel (other than under this category was 51 percent in
tubes, pipes and hollow profiles)’ case of Latin America, and 52 percent
has increased in 47 percent of the in case of Oceania (Exhibit 15).
Exhibit 15: Movement in NRCA across Regions for Articles of Iron and Steel (other
than Tubes, Pipes and Hollow Profiles) over the Period 2008-12

Source: PCTAs, EXIM Bank Research

56
4.23 Regional and Overall in 53 percent of the products. With
Competitiveness of India’s Exports respect to the regions of Africa and
of Iron and Non-Alloy Steel Asia, the share of products registering
an increase in NRCA is greater than
Over the period 2008-2012, India’s those recording a decline. The share
competitiveness in the category ‘Iron of products witnessing an increase
and Non-Alloy Steel’ has increased in in NRCA was 52 percent in case of
47 percent of the products exported by Africa, and 51 percent in case of Asia
it to the world, while it has decreased (Exhibit 16).

Exhibit 16: Movement in NRCA across Regions for Iron and Non-Alloy Steel over the
Period 2008-12

Source: PCTAs, EXIM Bank Research

57
 4.24 Regional and Overall the products. With respect to the
Competitiveness of India’s Exports regions of Latin America and Oceania,
of Other Alloy Steel; Hollow Drill the share of products registering an
Bars and Rods, of Alloy or Non increase in NRCA was greater than
Alloy Steel those recording a decline. The share
of products witnessing an increase in
Over the period 2008-2012, India’s NRCA was 52 percent in case of Latin
competitiveness in the category America, and 74 percent in case of
‘Other Alloy Steel; Hollow Drill Bars Oceania. In case of Asia, Europe and
and Rods, of Alloy or Non Alloy North America, the number of products
Steel’ increased in 54 percent of registering an increase in NRCA was
the products exported by it globally, same as the number of products
while it decreased in 46 percent of registering a decline (Exhibit 17).
Exhibit 17: Movement in NRCA across Regions for Other Alloy Steel; Hollow Drill
Bars and Rods, of Alloy or Non Alloy Steel over the Period 2008-12

Source: PCTAs, EXIM Bank Research

58
4.25 Regional and Overall exported by it to the world, while it
Competitiveness of India’s Exports decreased in the remaining 63 percent
of Primary Materials; Products in of the products. In all the regions, more
Granular or Powder Form number of products exported from India
witnessed a decline in NRCA index
Over the period 2008-2012, India’s than those witnessing an increase
competitiveness in the category in competitiveness, with the decline
‘Primary Materials; Products in being most precipitous in case of Africa
Granular or Powder Form’ increased with 69 percent of products registering
in only 37 percent of the products a decline in NRCA (Exhibit 18).

Exhibit 18: Movement in NRCA across Regions for Primary Materials; Products in
Granular or Powder Form over the Period 2008-12

Source: PCTAs, EXIM Bank Research

59
 4.26 Regional and Overall 46 percent of the products. Number of
Competitiveness of India’s Exports products recording an increase in NRCA
of Stainless Steel was higher than the products recording
a decline in all the regions taken into
India’s competitiveness has increased
consideration. Maximum increase in
in the category of stainless steel.
NRCA was witnessed in Oceania, with
Over the period 2008-2012, India’s
competitiveness in the category 69 percent of products registering an
of stainless steel increased in 54 increase in NRCA, followed by Africa
percent of the products exported by (68 percent), Europe (57 percent), and
it globally, while it has decreased in Latin America (56 percent) (Exhibit 19).

Exhibit 19: Movement in NRCA across Regions for Stainless Steel over
the Period 2008-12

Source: PCTAs, EXIM Bank Research

60
4.27 Regional and Overall increased in 44 percent of the
Competitiveness of India’s Exports products exported by it to the world,
of Tubes, Pipes and Hollow while it decreased in 56 percent of the
Profiles
products. Only in case of Oceania, the
Over the period 2008-2012, India’s share of products having an increase
competitiveness in the category in NRCA at 56 percent was greater
‘Tubes, Pipes and Hollow Profiles’ than those witnessing a decline.

Exhibit 20: Movement in NRCA across Regions for Tubes, Pipes and Hollow Profiles
over the Period 2008-12

Source: PCTAs, EXIM Bank Research

61
 4.3 PRODUCT AND MARKET 4.31 Methodology:
IDENTIFICATION
The analysis in this section considers
An attempt has been made to map three major determinants of India’s
the global demand for iron and performance in overseas markets,
steel products with India’s export namely:
competitiveness, with a view to
• The Normalized Revealed
outline a market specific approach for
Comparative Advantage (NRCA)
exporters. A generic analysis has been
at the regional level, as discussed
attempted in order to identify products
in the previous section at the
that have strong capabilities to export.
aggregate level for market
Also analyzed are the current export
identification, as well as at
markets where India has penetrated disaggregate levels for ‘Articles of
and the key competitors which India Iron and Steel (other than Tubes,
faces. While India needs to further Pipes and Hollow Profiles)’; ‘Iron
consolidate its share in the major and Non-Alloy Steel’; ‘Other
import markets, there are markets Alloy Steel; Hollow Drill Bars and
where India already has export Rods, of Alloy or Non-Alloy Steel’;
competitiveness, but its imports are at ‘Primary Materials; Products
relatively lower levels. These markets in Granular or Powder Form’;
are the potential growth drivers for ‘Stainless Steel’; and ‘Tubes,
India’s iron and steel exports and Pipes and Hollow Profiles’ for
need to be suitably targeted. simultaneous product and market
identification.
This chapter attempts to identify and
• Average Annual Growth Rate
categorize the iron and steel products
(AAGR) of regional import
where India could focus on, to realize
demand at the aggregate as well
potentially higher values, especially
as disaggregate level.
when considering that the country
already possesses manufacturing • Absolute value of regional import
capabilities for these products. The demand.
idea is to construct a product-market
matrix for iron and steel products in On the basis of these three
demand along with the key demand considerations, a four quadrant
centres (importers), and the key bubble chart is prepared for
exporters to these regions (India’s simultaneous product and market
competitors). identification. The size of the bubble

62
represents the relative regional import does not have competitiveness
demand of the products. The colour in these products, and imports
of the bubble represents whether of these products have also
the competitiveness has increased registered weak growth or have
or decreased, with the colour red actually declined in the region.
representing a decline, and green
representing an increase. The four • Achievers in Adversity (negative
quadrants imply the following: AAGR; positive NRCA): India
has competitiveness in these
• Product Champions (positive products, but the growth rate in
AAGR; positive NRCA): These the region for these products has
products have the maximum been declining. Indian players
potential, as the regional import can look towards concentrating
demand in these products has more on the product champions
shown robust AAGR over the
segment, if there is scope for
period 2008-2012, while India’s
diversification into other categories
exports of these products to the
of iron and steel production. Else,
region are competitive, and the
they can attempt to diversify into
competitiveness has remained
those regions where the product
same or increased over the period
category has been witnessing
under consideration.
strong import growth rates.
• Underachievers (positive AAGR;
Given that the focus needs to be
negative NRCA): India does not
have competitiveness in these primarily on iron and steel products
products, while their import which figure under the Product
demand from the region has Champions category, a further
grown significantly over the analysis of this categorization has
period under consideration. India been undertaken to identify the major
can strive towards increasing importing countries in the regions for
competitiveness in these markets these products.
for the identified products,
especially in cases where the 4.32 Aggregate Level Identification
competitiveness as measured by of Promising Markets
NRCA, has been improving over
time. With respect to all the regions, India’s
exports of iron and steel products at
• Declining Sectors (negative the aggregate level were competitive.
AAGR; negative NRCA): India At the aggregate level, the markets

63
 of North America, Latin America, 4.33 Disaggregate Simultaneous
Asia and Oceania are regions where Identification of Markets and
Indian Iron and Steel products are Products
competitive, and these regions have
also exhibited strong import demand 4.331 Africa
for the products.
In case of Africa, ‘Stainless Steel’
In Europe and Africa, Indian Iron
is a product champion, indicative
and Steel products are competitive,
of simultaneous increase in
but the growth in import demand
competitiveness of India’s exports, and
has been frail, which puts forward a
case for Indian exporters currently strong import demand from the region
exporting to these regions, to diversify in the product category. However, in
into other regions which have shown certain categories like ‘Iron and Non-
better import demand performance Alloy Steel’, ‘Other Alloy Steel; Hollow
(Exhibit 21). Drill Bars and Rods, of Alloy or Non-

Exhibit 21: Aggregate Level Identification of Promising Markets

Source: PCTAs, EXIM Bank Research

64
Alloy Steel’, ‘Articles of Iron and Steel In the Product Champion Category
(other than Tubes, Pipes and Hollow of Stainless Steel, South Africa was
Profiles)’, and ‘Tubes, Pipes and the largest importer in Africa in 2012,
Hollow Profiles’, India’s exports have with Taiwan, Sweden, India, Korea
been regionally revealed competitive Rep., Italy and China being the major
in spite of negative growth in import suppliers of the product to the country.
demand of these products from Africa.
India was also major supplier to the
In the case of ‘Articles of Iron and
top importing African countries of
Steel (other than Tubes, Pipes and
Egypt, Morocco, and Ethiopia. Apart
Hollow Profiles)’, there has also been
from these, India can increase its
an increase in export competitiveness
of India (Exhibit 22). presence in Algeria (Table 16).

Exhibit 22: Product Matrix at Disaggregate Level for India’s Exports to Africa

Note: Size of the bubble represents import demand; Colour of the bubble represents increase
or decrease in NRCA (Red represents decrease; Green represents increase). A product
category is a product champion only if the NRCA has remained same or increased, in the
period under consideration. Else, it is a pseudo-product champion

Source: PCTAs, EXIM Bank Research

65
 Table 16: Top Importing Countries in Africa for the Product Champion Categories,
and their Major Suppliers

Product Top Value of Imports (US$ mn)

Champion Importing Major Suppliers
Categories Countries 2008 2009 2010 2011 2012

Taiwan, Sweden, India, Korea

South
184.6 75.3 139.3 166.5 176.0 Rep., Italy, China, Germany,
Africa
Finland, USA, Czech Rep

Ta i w a n , C h i n a , I t a l y,
Germany,  India, Sweden,
Egypt 177.9 101.3 124.0 140.7 153.7
Turkey, Belgium, Spain,
Thailand

Belgium, Spain, USA,

Stainless France, Germany, Sweden,
Morocco 50.8 28.5 28.8 54.7 60.0
Steel Italy,  India, Taiwan, The
Netherlands
Turkey, Ukraine, Russian
Fed, China,  India, Israel,
Ethiopia 22.8 15.3 21.7 23.9 25.3
Italy, Germany, Taiwan,
Peru
Spain, Italy, Germany, The
Netherlands, France, Taiwan,
Algeria 28.3 24.8 34.4 59.6 25.3
Turkey, Sweden, Korea Rep.,
Czech Rep

Source: PCTAs, EXIM Bank Research

4.332 Asia in the decline in NRCA index for

these products. India’s exports have
‘Primary Materials; Products in lost competitiveness with respect to
Granular or Powder Form’, ‘Stainless the Asian market in all the categories
Steel’ and ‘Articles of Iron and Steel of Iron and Steel exports from India
(Other than Tubes, Pipes and Hollow (Exhibit 23).
Profiles)’ are the pseudo-product
4.333 Europe
champions in case of Asia. Although
India’s exports are competitive with
‘Stainless Steel’ and ‘Primary
respect to Asia in these products and
Materials; Products in Granular
the region’s import demand has grown
or Powder Form’ are the product
at a robust pace, there has been a categories where growth in import
decline in India’s competitiveness in demand of European region has
all these product categories over the been robust, and India’s exports
period under consideration, reflected with respect to the region have been

66
 Exhibit 23: Product Matrix at Disaggregate Level for India’s Exports to Asia

Note: Size of the bubble represents import demand; Colour of the bubble represents increase
or decrease in NRCA (Red represents decrease; Green represents increase). A product
category is a product champion only if the NRCA has remained same or increased, in the
period under consideration. Else, it is a pseudo-product champion.
Source: PCTAs, EXIM Bank Research

competitive. However, the latter largest importing European country in

category has witnessed a decline 2012, with France, Italy, Spain, Sweden
in competitiveness over the period and Finland being the major suppliers
under consideration. Hence, only the of the product to Germany. India was
category of ‘Stainless Steel’ is a true the eighth largest import source for
Product Champion. Competitiveness Germany. However, India was the
of India’s exports has grown in the topmost non-EU supplier of stainless
category of ‘Articles of Iron and Steel steel to Germany, and the second
(Other than Tubes, Pipes and Hollow largest non-EU supplier to France.
Profiles)’. However, the category has India was also the eighth largest
been witnessing frail growth in import import source for the Netherlands, and
demand in the region during the 2008- the country’s second-largest non-EU
12 period (Exhibit 24). import source for the product. India
can expand its export presence in
In the Product Champion category of other important countries of Italy and
‘Stainless Steel’, Germany was the United Kingdom (Table 17).

67
 Exhibit 24: Product Matrix at Disaggregate Level for India’s Exports to Europe

Note: Size of the bubble represents import demand; Colour of the bubble represents increase
or decrease in NRCA (Red represents decrease; Green represents increase). A product
category is a product champion only if the NRCA has remained same or increased, in the
period under consideration. Else, it is a pseudo-product champion.
Source: PCTAs, EXIM Bank Research
Table 17: Top Importing Countries in Europe for the Product Champion Categories,
and their Major Suppliers
Product Top Value of Imports (US$ mn)
Champion Importing Major Suppliers
Categories Countries 2008 2009 2010 2011 2012

France, Italy, Spain, Sweden, Fin-

Germany 6126.5 2946.6 4525.4 5767.5 4893.9 land, Belgium, Austria, India, The
Netherlands, USA

France, Spain, Finland, The Neth-

Italy 5427.4 2287.8 3901.1 4532.4 3485.4 erlands, Sweden, Belgium, Korea
Rep., Germany, China, Taiwan

Belgium, Italy, Germany, Spain,

Stainless Finland, Sweden, USA, Austria,
Steel France 3755.5 1822.8 2538.8 2864.9 2422.3
The Netherlands, India, United
Kingdom

Finland, Germany, Belgium, Italy,

The Neth-
2676.7 1349.9 2174.0 2560.6 2352.3 France, Sweden, Taiwan, India,
erlands
China, Korea Rep.
Germany, Spain, Italy, Finland,
United
1600.3 849.0 1169.8 1420.0 1325.0 Sweden, USA, Belgium, The Neth-
Kingdom
erlands, France, Austria
Source: PCTAs, EXIM Bank Research

68
4.334 Latin America only the categories of ‘Stainless Steel’
and ‘Primary Materials; Products in
No product category witnessed Granular or Powder Form’ are true
negative AAGR for import demand in product champions, as rest of the
this region. The product categories of categories have witnessed a decline
‘Tubes, Pipes and Hollow Profiles’, in competitiveness during the period
‘Primary Materials; Products in under consideration (Exhibit 25).
Granular or Powder Form’, ‘Iron and
Non-Alloy Steel’, ‘Articles of Iron India has been one of the top suppliers
and Steel (Other than Tubes, Pipes in the Latin American market, of
and Hollow Profiles)’ and ‘Stainless Stainless Steel. All the top five
Steel’ are products where India has stainless steel importing countries of
competitiveness with respect to Latin the region- Mexico, Brazil, Argentina,
America, and the import demand in Colombia and Chile- had India as one
the region for these products have of the top ten suppliers in 2012. For
witnessed strong growth. However, Brazil’s import of stainless steel, India

Exhibit 25: Product Matrix at Disaggregate Level for India’s Exports to Latin America

Note: Size of the bubble represents import demand; Colour of the bubble represents increase
or decrease in NRCA (Red represents decrease; Green represents increase). A product
category is a product champion only if the NRCA has remained same or increased, in the
period under consideration. Else, it is a pseudo-product champion.
Source: PCTAs, EXIM Bank Research

69
 Table 18: Top Importing Countries in Latin America for the Product Champion
Categories, and their Major Suppliers

Product Top Value of Imports (US$ mn)

Champion Importing Major Suppliers
Categories Countries 2008 2009 2010 2011 2012
Italy, USA, South Africa,
Japan, China, Korea Rep.,
Mexico 1110.0 624.0 1024.2 1157.0 1130.3
India, Germany, Taiwan ,
Sweden
Taiwan , India, South Africa,
USA, Korea Rep., China,
Brazil 478.3 240.2 415.5 460.3 447.1
I t a l y, G e r m a n y, S p a i n ,
Japan
Brazil, Taiwan , Germany,
Stainless
India, South Africa, Korea
Steel Argentina 191.3 85.8 165.3 183.6 176.1
Rep., China, Belgium,
Spain, USA
Taiwan , South Africa,
Finland, India, Brazil,
Colombia 114.7 61.7 88.9 136.4 117.9
China, USA, Germany,
Mexico, Korea Rep.
Finland, China, Spain, USA,
Chile 97.0 52.2 104.2 114.3 107.9 South Africa, India, Brazil,
Sweden, Taiwan, Italy
USA, Brazil, Venezuela,
Russian Fed, China,
Mexico 996.7 401.8 596.6 775.0 818.0 Ukraine, India, United
Kingdom, South Africa,
Korea Rep.
Chile, South Africa,
Germany, China, France,
Brazil 455.2 158.3 330.7 382.4 287.4
Norway, Paraguay,
Sweden, USA, Argentina
Primary
Materials; USA, Brazil, Trinidad &
Products Tobago, Bolivia, India,
Peru 165.2 93.6 172.4 134.8 190.4
in Granular Mexico, Chile, China,
or Powder Russian Fed, South Africa
Form
Brazil, Trinidad & Tobago,
Russian Fed, Korea Rep.,
Argentina 333.4 94.5 204.9 175.4 172.9 Chile, Norway, India,
Germany, South Africa,
USA
Brazil, China, Mexico, India,
South Africa, Korea Rep.,
Chile 107.0 33.7 53.1 77.7 86.4
Australia, Turkey, Argentina,
Venezuela

Source: PCTAs, EXIM Bank Research

70
was the second largest import source America during the period under
after Taiwan (Table 18). consideration. While India’s exports
in the product categories of ‘Tubes,
In the category of “Primary Materials; Pipes and Hollow Profiles’, ‘Primary
Products in Granular or Powder Materials; Products in Granular or
Form” as well, India was an important Powder Form’, ‘Iron and Non-Alloy
import source for the region. Except
Steel’, ‘Articles of Iron and Steel
for Brazil, India was one of the top ten
(other than Tubes, Pipes and Hollow
suppliers to all the five major Latin
Profiles)’ and ‘Stainless Steel’ are
American markets (Table 18).
competitive and the demand for
these products in the region have
4.335 North America
been strong, India’s competitiveness
As in the case of Latin America, no in these categories with respect to
product category witnessed negative the region have declined in the period
AAGR in import demand in North under consideration (Exhibit 26).

Exhibit 26: Product Matrix at Disaggregate Level for India’s Exports to North America

Note: Size of the bubble represents import demand; Colour of the bubble represents increase
or decrease in NRCA (Red represents decrease; Green represents increase). A product
category is a product champion only if the NRCA has remained same or increased, in the
period under consideration. Else, it is a pseudo-product champion.
Source: PCTAs, EXIM Bank Research

71
 4.336 Oceania categories was frail during 2008-12
(Exhibit 27).
The product categories of ‘Articles As expected, Australia is the largest
of Iron and Steel (other than Tubes, market in the Oceania region,
Pipes and Hollow Profiles)’, ‘Tubes, where India can attempt to expand
Pipes and Hollow Profiles’, ‘Iron its presence. However, India was a
and Non-Alloy Steel’, and ‘Other major supplier to Australia only in the
Alloy Steel; Hollow Drill Bars and category of ‘Tubes, Pipes and Hollow
Rods, of Alloy or Non-Alloy Steel’ Profiles’. In the rest three Product
were the product champions in this Champion categories of ‘Articles of
Iron and Steel (Other than tubes,
region. India’s exports with respect
pipes and hollow profiles)’, ‘Other
to Oceania were also competitive in
Alloy Steel; Hollow Drill Bars and
the categories of ‘Primary Materials; Rods, of Alloy or Non-Alloy Steel’ and
Products in Granular or Powder ‘Iron and Non-Alloy Steel’, India can
Form’, and ‘Stainless Steel’. However, explore greater export opportunities
the growth in import demand in these in Australia (Table 19).
Exhibit 27: Product Matrix at Disaggregate Level for India’s Exports to Oceania

Note: Size of the bubble represents import demand; Colour of the bubble represents increase
or decrease in NRCA (Red represents decrease; Green represents increase). A product
category is a product champion only if the NRCA has remained same or increased, in the
period under consideration. Else, it is a pseudo-product champion.
Source: PCTAs, EXIM Bank Research

72
 Table 19: Top Importing Countries in Oceania for the Product Champion Categories, and their Major Suppliers

Product Value of Imports (US$ mn)

Top Importing
Champion Major Suppliers
Countries 2008 2009 2010 2011 2012
Categories
China, Thailand, USA, Indonesia, Germany, Taiwan , Korea
Australia 3052.1 2614.4 2844.1 4187.1 4827.2
Rep., Japan, Italy, United Kingdom
China, Australia, USA, Taiwan , Germany, Korea Rep., United
New Zealand 509.3 365.4 417.3 491.7 516.5
Articles of Iron Kingdom, Italy, Japan, Thailand
and Steel (Other
Papua New Australia, Thailand, Singapore, China, Malaysia, USA, Korea
than tubes, 0.0 0.0 0.0 370.8 449.7
Guinea Rep., New Zealand, United Kingdom, Italy
pipes and hollow
profiles) China, Australia, New Zealand, Hong Kong, Thailand, India,
Fiji 32.1 25.7 26.5 28.6 33.0
Singapore, South Africa, USA, Malaysia
New Zealand, China, Indonesia, Fiji, Thailand, Australia,
Samoa 0.0 3.7 10.7 8.3 10.5
Malaysia, Japan, USA, Singapore
Japan, China, India, Malaysia, Korea Rep., Germany, USA,
Australia 1154.2 1008.6 943.5 1078.4 1779.4
Taiwan , Singapore, Indonesia
Papua New China, Singapore, Japan, Mexico, Australia, Thailand, Italy,
0.0 0.0 0.0 173.2 131.5
Guinea Germany, Indonesia, Spain
Tubes, Pipes and
China, Australia, Japan, Taiwan, France, USA, Korea Rep.,
Hollow Profiles New Zealand 178.4 111.3 81.7 112.2 129.1
Italy, Malaysia, Singapore
China, New Zealand, Malaysia, Australia, Singapore, Hong
Fiji 5.0 3.5 4.6 4.3 3.3
Kong, India, USA, Japan
Samoa 0.0 0.5 0.9 0.9 0.7 China, New Zealand, Australia, Hong Kong, Malaysia

73
74
China, Japan, Sweden, Korea Rep., Germany, Spain, United
Australia 406.8 267.8 298.4 411.1 367.6
Kingdom, Austria, USA, France
Other Alloy Steel; Japan, Australia, Germany, China, Taiwan , Sweden, Korea
New Zealand 43.9 24.5 34.3 39.2 32.5
Hollow Drill Bars Rep., USA, Austria, India
and Rods, of
Papua New Australia, Malaysia, China, Thailand, Singapore, Korea Rep.,
Alloy or Non-Alloy 0.0 0.0 0.0 25.2 20.0
Guinea New Zealand, Indonesia, Hong Kong, Canada
Steel
Kiribati 0.0 0.0 0.0 0.0 2.2 Japan
Samoa 0.0 0.0 0.6 1.1 0.7 China, New Zealand, Malaysia, Thailand, Australia, Singapore
China, Korea Rep., New Zealand, Singapore, Taiwan ,
Australia 1847.9 926.8 1299.0 1318.0 1406.9
Malaysia, Japan, Thailand, Germany, Indonesia
Australia, Korea Rep., Japan, Taiwan , China, Thailand,
New Zealand 353.9 138.8 216.8 235.2 243.9
Indonesia, Canada, United Kingdom, Singapore
Iron and Non- Papua New New Zealand, China, Malaysia, Australia, Singapore,
0.0 0.0 0.0 60.3 66.5
Alloy Steel Guinea Thailand, Taiwan , Hong Kong, Korea Rep., Japan
New Zealand, Singapore, China, Australia, Malaysia, Thailand,
Fiji 38.4 20.9 25.9 26.8 28.1
Hong Kong, Taiwan , Korea Rep., Korea Democratic Rep
New Zealand, China, Taiwan , Fiji, Australia, Malaysia, Korea
Samoa 0.0 0.3 3.5 3.7 3.4
Rep.

Source: PCTAs, EXIM Bank Research

5. THE INDIAN STEEL INDUSTRY:
STRATEGIES

The steel consumption growth in than estimated so far. If that does not
India will be based on the trends happen and the economy moves along
in population growth, urbanization, the current path where contribution of
mobility and energy costs, including manufacturing sector has remained
fuels for the transport sector. Further, stagnant, the outlook for steel will
steel has a strong relationship with remain passive. If the process of
manufacturing, and so long as the transformation is delayed, in the global
country’s long term growth pattern context, the prospects of industrial
is not supported by adequate local development in the country will reduce
manufacturing base, steel demand in a relative sense. This will not only
growth will remain limited. lead to loss of opportunities in the world
market, but also expose the domestic
A rapid change in the structure of market to stronger and wider foreign
the economy in terms of changing competition. With continuous drop
shares of different major sectors in in the share of manufacturing in the
the economy, viz., agriculture, industry economy over the years, the reversal
and services will involve a large of the trend will be an increasingly
transformation of the economy and stronger challenge and the resources
the structure and size of the same required to bring in the change will also
will need to be ascertained first, and be significant.
then the economic opportunities for
steel demand growth will have to 5.1 Raw Material Security
be identified. It is possible that any
economic transformation with rapid Continous supply of coking coal in
growth in manufacturing will trigger desired quality remains a concern
steel demand growth much more because of the depletion of reserves

75
 in many mines. Further, supply so the requirements for coking coal
bottlenecks in Australia are mounting is expected to increase. In 2012,
with floods and bad weather conditions India imported around 31 million
which make delivery difficult even at tonnes coking coal, and that amount
current levels. is expected to rise above 41 million
tonnes by 20154. High dependence
India is very dependent on imported on imports further makes the domestic
coking coal. Approximately 60 – 65 steelmakers’ profitability dependent on
per cent of the domestic coking coal the international coking coal prices.
requirements are met through imports
due to unavailability of appropriate Raw material security varies widely
qualities in the country. Coal reserves across the Indian steel companies and
available in the country have high is probably the largest differentiator.
ash content and are not suitable for As these companies look to secure their
the steel industry. Planned increases raw materials supplies, the capability
in steel production capacity are likely to acquire, develop and operate
to be through the blast furnace route, overseas raw material assets has

Exhibit 28: Coking Coal Import by India (US$ bn)

Source: DGCI&S

4
Thomson Research

76
become a strategic imperative given January 2010) to US$ 1.9 bn in 2012.
the short term challenges in securing In terms of export value of iron & steel,
such assets in India. Even where India’s export to South Korea lags
the raw materials are not shipped to behind enormously when compared
India, the overseas asset, act as a to Korea’s exports to India. During the
natural hedge. Several Indian steel same period 2009 and 2012, India’s
companies have acquired iron ore and exports to Korea increased from
coking coal assets in countries such as US$ 185.2 mn to US$ 477 mn. At
Canada, Australia and South Africa. the same time, the recent free trade
One leading Indian steel company agreement with Japan and South Africa
acquired a majority stake in a new iron enabled imported flat steel material to
ore reserve in Canada. It had acquired enter the Indian market at just 3 per
a minority stake in an Australian miner cent basic import duty compared to
which was sold last year to a leading the actual 7.5 per cent duty levied
global miner. Another Indian steel on these products. However, Indian-
company has acquired and operates origin steel was not widely accepted in
anthracite mines in South Africa. It has return by the manufacturing industries
also acquired a significant minority of these countries, as they prefer to
stake in an Australian coal miner with source material from domestic mills
exploration rights for coking coal in for quality or delivery performance
Queensland. reasons. With the conclusion of the
India-Japan FTA in 2011, India faces
5.2 Trade Agreements Impact on a similar threat of imports from Japan.
the Domestic Steel Market It may be noted that India’s imports
from Japan of iron and steel (HS
The comprehensive economic Code 72 and 73) had already touched
partnership agreement (CEPA) with US$ 1.8 bn in 2012.
South Korea has resulted in increase
in imports of iron and steel. India’s 5.3 Near-Shoring Yield Greater
imports from South Korea of iron Revenues from Exports
and steel (HS Code 72 and 73) has
witnessed a more than 35 per cent Given the fact that steel market across
increase from US$ 1.4 bn as on the globe is vulnerable to global
end-2009 (CEPA became effective economic conditions, India needs to

77
 be more proactive in diversifying its compared to the minimum order
export markets. USA and Europe, the booking of 15,000-20,000 tonnes
traditional export markets of India, have from destinations like Japan, South
been offering minimal opportunities Korea and China, which is valued by
for exports due to shrinking domestic the customers. Furthermore, India
demand. The relatively small share enjoys freight advantage of minimum
of production exported from India US$ 20/t for the East African market,
has faced competition, particularly and is already a supplier to smaller
from China due to low prices and African countries which require
freight advantages the latter has in galvanized material of below 0.3
some markets. Also, the share of mm thickness. This can prove to be
India is very low in most of its major a useful niche as Chinese mills are
markets. more focused on achieving higher
volumes and therefore do not offer
India could adopt a similar strategy as material with lower thickness.
Brazil, of focusing on geographically
nearer markets where it has a freight 5.4 Streamling Land Acquisition
advantage. At the same time, the and Environment Regulations
country could target other important
and growing export destinations A number of existing legal and
for steel sheet products, including statutory regulations and government
the Middle East and Africa, where policy guidelines are of crucial
it has a freight advantage over relevance to the steel industry. Some
China, Japan and South Korea. of the important ones amongst these
For instance, average freight from include those linked to allocation of
Mumbai to Jebel Ali port is around mining leases, environmental and
US$ 25-27/t, while shipping from forest clearances, quality control
China incurs a freight charge of and the policy on resettlement
US$ 45/t . This will allow India to
5 and rehabilitation etc. Setting up a
maintain a delivered price advantage, steel plant requires vast tracts of
despite a reduction in FOB prices from land. Acquiring these vast tracts
China in recent years. Indian mills are of land for setting up mega-plants,
also able to book much smaller orders particularly in a populous country like

5
CRU Research

78
India, has remained a challenge for 5.5 Creating Infrastructure and
steelmakers. India needs to simplify logistics for Steel Industry
its processes for land acquisition,
The steel industry is a major user of
allocation of mines, as well as granting
infrastructure resources like railways,
environment and forest clearances
roads and ports. Every 1 tonne of steel
to lend certainty to execution of
produced involves approximately 4
big projects. Major Greenfield steel tonnes of material movement across
projects have witnessed a delay for India. Growth in steel production
a number of years primarily due to will increase the burden on the
land acquisition issues. For example, country’s already stretched logistics
POSCO’s proposed steel mill in infrastructure. To meet the needs
Orissa which required around 1,600 of a growing steel industry, major
hectares got approved after almost improvements in various infrastructure
facilities are required. The Indian
8 years. Rules to calculate adequate
railway system suffers from a lack of
compensation to the landowners have
adequate haulage capacity and has
been unclear. Additionally, the number
significantly low heavy-haul freight
of approvals like environmental and
compared to its global peers. For
forest clearances required from the example, Indian Railways’ heavy-
authorities has made land acquisition haul freight at 5,400 tonnes is much
and setting up projects the top issues lower than that of other countries
in building up large new capacity. such as China (20,000 tonnes), South
Simplification of the process of land Africa (22,000 tonnes) and Australia
acquisition, expediting the process of (32,000 to 37,000 tonnes) 6. Indian
environmental and forest clearances Railways also suffers from inadequate
infrastructure at various loading and
and putting in place a mechanism
unloading terminals. The freight car
for mining allocations, will give the
turn-around time is very slow by global
required impetus to steel investment
standards. The effective freight rates
plans and lend certainty to project continue to carry an increased burden
execution. of subsidy towards passenger traffic.

6
Ministry of Indian Railways

79
 5.6 Limiting Exports of Iron-Ore who either have captive mines or have
recently invested on them will see
Iron ore prices are likely to remain their economics weakening. However,
under pressure in the world market a counter argument is that the iron
due to abundant supplies and reduced ore resources in China, and even in
demand. The boom in the industry India to an extent, may be sufficiently
in the last decade led to massive depleted by then due to high steel
investments in iron ore mining and by production and therefore, one would
the estimates available as on date, expect high prices of iron ore on the
over 1.5 billion tonnes of iron ore international market in the years ahead
mining capacities are getting added to continue.
in the coming years before 2020. The
consequences of this development The country has at present an
can be either the financial bankruptcy estimated iron ore production capacity
of the iron ore players, especially the of about 300 million tonne, which
new ones, who invested at higher is about three times the present
valuation of iron ore prices, or that domestic consumption of iron ore.
they continue to produce as per the The last decade has seen a rapid
market demand and continue to sell at increase in production of iron ore in
marginal costs. While this is good for the country, primarily due to a lucrative
the steel makers, those in the industry export market fuelled by insatiable

Exhibit 29: India’s Exports of Iron Ore: World and China (US$ bn)

80
demand of ever expanding Chinese Another major cost that needs to be
steel industry. During 2012-13, export looked into is the cost of raw material.
of iron ore declined, mainly due to The only way to reduce costs on
restriction on exports by Karnataka these is using raw materials more
and the fiscal measures taken by the efficiently, which can bring significant
Government for restricting the export cost savings.
of iron ore. In fact, as per projections,
present known reserves may not last It may be mentioned here that
beyond the next twenty years unless reducing inventory, transportation
special efforts are made to augment and processing costs, freight costs,
the country’s reserves. It may be noted etc are some of the other ways by
here that these projections do not which the company can increase
include the amount of iron ore, which revenue. For example, North India
will be exported out of the country. If has not been naturally endowed with
the export of iron ore continues as per rich iron ore and coal deposits like
the present trend, the reserves of iron East or South India. Poor proximity
ore will be exhausted even earlier. to ports, higher cost and shortages
of power do not favor setting up
5.7 Cost Reduction to Improve primary steel manufacturing units in
Margins the region. Moreover, the logistics cost
of transporting raw material from the
Steel companies globally have been eastern and southern states make it
operating in a challenging environment unviable to produce crude steel in the
of rising input costs and limited pricing region.
power, leading to steady erosion in
margins. In response, steel makers 5.8 Improving Port Facilities
have been integrating upstream
facilities to secure supplies of iron As steel capacity in the country
ore and coking coal. To ensure a grows, the industry will be increasingly
competitive advantage, steel makers dependent on domestic ports for
have to concentrate on reducing costs, material movement. Projected traffic
especially operating costs. The cost handled by major and minor ports for
reduction would be the main aspect iron ore is expected to rise from 138
of the improvement pertaining to million tonnes in 2011–12 to around
the competitiveness of the industry. 245 million tonnes by 2016–17, while
Operating costs need to be brought traffic for coal (coking and non-coking
down by adopting strict cost control coal) is projected to increase from
measures and through benchmarking. 163 million tonnes in 2011–12 to

81
 around 544 million tonnes in 2016–177. such as aluminium (in specific areas
Port capacity may not increase at the with long product life such as buildings,
same pace, as there have been delays infrastructure, automobiles, etc.)
in implementing current projects, and plastics (construction, pipes,
further limiting the ability to propose consumer durables, appliances,
new projects. etc. irrespective of product life).
Future products are being developed
5.9 Reducing Procedural Delays considering the low cost alternatives
and energy considerations. Therefore,
The existing process of securing steel intensity in the economy may not
statutory clearances for commencing see an increase as expected.
mining operation, right from the stage
of applying for the reconnaissance Indian steel companies therefore
permit to getting the mining lease, may need to upgrade their product
incorporates a series of lengthy and service offerings to target more
procedures at both the State and sophisticated customers, such as
Central level, leading to massive delays auto original equipment manufacturers
in commencing mining operations. The (OEM). This includes establishing
delays are as much as 5-7 years in wider conversion and coating lines
India as against normal time of 12 (e.g.,Galvalume) and forward
months in countries like Australia, integrating into service centers to
Canada etc. This is reflected in the fact meet OEM demand for value-added
that despite 200 MOU’s being signed products (e.g., tailored blanks, laser
by investors with the States, not many welded blanks). In addition to value-
major greenfield projects has come up added products, customers also are
in the recent past. These procedural expecting higher service components
delays have proved detrimental to like vendor-managed inventory and
the growth of the steel industry in the more responsive supply chains with
country. lower order-to-delivery lead times.
As these customers expect tailored
5.10 Competition from Substitutes value propositions that best suit their
requirements, Indian steel companies
Steel industry is inevitably going to face would be forced to enhance the value-
competition from other industries, as added products in their portfolios and
technology improves. For example, the focus on delivering desired service
steel industry will increasingly come levels to the end customers. For
under threat from substitute materials instance, OEMs are demanding (and

7
Report of the Working Group on Port Sector for the 12th 5-year plan, Ministry of Shipping,
Government of India

82
obtaining) delivery lead times of less 5.12 Encouraging Steel Futures
than 30 days from new entrants. Market

5.11 Price Sensitivity and Demand The steel futures market is a ‘new
Volatility reality’, which could bring stability in
pricing, offering certain uses to steel
Steel Industry always runs risk of producers as well as consumers.
industry cycle. Input price sensitivity Futures contracts are financial risk
and demand volatility are an inherent management tools that enable
business risks. Companies have to companies to hedge their price risk
undertake continuous development, exposure by agreeing to buy or sell
training and modernization programme a particular volume of product for
to keep its business efficient. Managing delivery on a fixed date at a price
the increased volatility in raw materials agreed today. The advantages of
prices has become a major day-to- having a steel futures market would be
day challenge for steelmakers. Such that it ensures price transparency and
fluctuations tend to erode the investor the transparent prices would facilitate
confidence in the industry’s ability to external and internal negotiations with
manage the spreads between input other market influencers such as unions
costs and output prices, which are and governments. Experience in other
essential to generate adequate returns markets such as oil and aluminum
over the cycle. Similarly, as regards the shows that there is a high correlation
other major raw material, viz. coking between spot prices of different related
coal, poor domestic availability, as products. In the case of steel products
well as quality problems of domestic this could mean that a futures contract
coal has forced the steel industry to for one product, e.g, HR coils could be
import coking coal, thereby making used as a reference quotation price for
them susceptible to the vagaries of other products such as cold rolled coils
the fluctuating international coking or slabs with a premium or discount.
coal prices and adversely affecting For similar reasons, the management
their competitive position. Even as the of raw materials relationships could
mining industry adds more capacity in also be made easier for e.g. iron ore
the coming years, the industry structure contracts could be linked to the price
and market dynamics are expected to for HR coils on an exchange, hence
remain more or less the same. In this protecting margins.
context, all steel producers, even those
with some measure of self-sufficiency, Steel futures will also help in rendering
need to look to other mechanisms to decision-making process easier and
manage volatility. will help producers to plan their

83
 capacity in a better way, as they are have developed UltraLight Steel
sure of the future. Therefore, steel AutoBody, which has achieved 25
futures would be healthy for the per cent reduction in vehicle mass,
industry, as it would help in potentially re-establishing the position of steel as
increasing the capital available and a viable light-weight material for the
also reducing the cost of capital, and automotive market. In such companies,
thus improving profitability. In India, two there is a new thinking which clearly
exchanges currently offer steel futures states that accidents are avoidable
contracts - MCX (for steel ingots and and ‘accident free’ steel is the practical
HRC) and NCDEX (only steel ingots) goal of the future Similarly, the World
- but trading is very limited. Steel Association has initiated a new
project called ‘Living Steel’ to stimulate
5.13 Introducing New Product innovation in design, supply and use
Lines of steel in construction. Indian steel
producers should also concentrate on
Indian steel industry need to producing new generation products to
concentrate more on providing new be competetive globally.
generation products that maybe in
demand in future. There are thousands 5.14 Steel Plants to Meet Global
of different types of steel, designed Standards
to meet the specific needs of end
users. Many of the products were Steel is a highly capital and technology
developed in the last ten years. intensive sector. Therefore sustained
Safety requirements, cost restrictions, and consistent improvements in
structural performance demands parameters of technical efficiency
innovations in steel production. In has become vital, specially in areas
addition, increasing environmental where the industry is lagging behind.
pressures lead to innovation in steel Technological developments are more
manufacturing technology, as also likely to be seen in mining of both
design and applications in end user iron ore and coal, use of coal and
industries. For example, advanced high- production of iron. The steel industry
strength steels are helping carmakers will have to cater to the requirement of
meet the performance demands with the technology changes in the end use
affordable solutions. With the rising areas. Demand for lighter and stronger
climate change concerns, the next steel will require technology change in
generation automobiles would include steel making and rolling. Technology
alternative powertrains, such as change in product areas will require
hybrids and fuelcells. Steel producers high investment and not all the steel

84
producers will be able to respond to inferior raw material, beneficiation,
it quickly. energy conservation and use of
waste material. While for some
In India, such problems are mainly of these problems, the industry is
related to obsolescence of technology in search of innovative and cost
adopted and lack of timely moderni- effective solutions, there exists proven
sation / renovation, quality of raw technologies in certain other areas.
material and other inputs, inefficient These technologies/practices have
shop floor practices, lack of automation been already operating successfully
and R&D intervention. This has abroad and need to be adopted and
affected various critical performance assimilated by the Indian industry at
parameters for steel plants, including an accelerated pace. While adoption
blast furnace productivity, coke rate, of proven technologies may result in
energy consumption and blast furnace immediate gains, there is a need to
slag volume. Concerted efforts with encourage those technologies which
well thought out programme of action though are not yet commercially
are therefore necessary to bring the proven but are consistent with the
Indian steel industry at par with their resource endowment of the country.
counterparts abroad. Table 20 briefly The use of steelmaking technologies
mentions about the performance of such as FINEX8 and ITmk39 need to
Indian steel plants as compared to be encouraged. This will also lead to
global parameters. an improvement in consumption of
raw materials and energy, as well as
The specific areas requiring immediate compliance with environmental and
attention include areas of process pollution benchmarks such as carbon
improvement, automation, use of emission norms.

8
FINEX is the name for an iron making technology developed by Siemens VAI and POSCO.
Molten iron is produced directly using  iron ore  fines and non-coking  coal  rather than
traditional  blast furnace  methods through  sintering  and reduction with  coke. Elimination
of preliminary processing is claimed to make the plant for FINEX less expensive to build
than a blast furnace facility of the same scale, additionally a 10-15% reduction in production
costs is expected/claimed through cheaper raw materials, reduction of facility cost, pollutant
exhaustion, maintenance staff and production time. The process is claimed to produce less
pollutants such as sulphur-di-oxides, nitrogen-di-oxides, and carbon dioxide than traditional
methods.
9
Development of direct iron reduction process based on coal, called ITmk3 (Iron-Making
Technology Mark “3”), has been started by Japanese company Kobe Steel, Ltd in 1996.
The objective was to create a modern technology to produce high quality products for
metallurgical industry with successive significant reduction in production costs and lower
environmental hazard.  It is a simple process with a single-step furnace operation. It uses
rotary hearth furnace (RHF) to transform iron fines and pulverized coal into iron nuggets.
Reduction, melting and slag separation completes within ten minutes.

85
 Table 20: Performance of Indian Steel Plants as compared to Global Parameters

Global Indian
Item Unit Unit
Benchmark Steel Plant
Tonnes of hot metal
Blast Furnace produced per day, per
(t/day/m )3
2.5-3.5 1.5-2.5/2.8
Productivity cubic meter of blast
furnace volume.
Kilograms consumed
Coke rate (kg/t-HM) per tonne of hot metal 350-400 500-600
produced
Kilograms consumed
Pulverized Coal
(kg/t-HM) per tonne of hot metal 150-250 50-100
Injection
produced
Kilograms consumed
Blast Furnace Slag
(kg/t-HM per tonne of hot metal 200-300 300-400
Rate
produced
Giga calorie per tonne of
Energy Consumption (Gcal/TCS 4.4-5.5 6-6.5
crude steel produced
Steel making slag SMS slag consumed per
(kg/TCS) < 100 180-200
rate tonne of crude steel
tonnes of CO2 emitted per
CO2 emission (t/TCS) 1.7-1.9 2.8-3.0
tonne of crude steel

Source: IISA as quoted in report of the Working Group on Steel Industry for the 12th FYP

5.15 Recycled Steel Recycling Institute (SRI), a unit of the

American Iron and Steel Institute, is
In the United States, steel is the most an industry association that promotes
widely recycled material because and sustains the recyling of all steel
it is economically advantageous to products. The North American steel
do so. It is cheaper to recycle steel
industry annually recycles millions of
than to mine ore and manipulate it
tons of steel scrap from recycled cans,
through the production process to
automoblies, appliances, construction
form steel. Steel does not lose any
and other steel products. This scrap
of its inherent physical properties
during the recycling process, and is remelted to produce new steel.
has drastically reduced energy and India should also adopt techniques of
material requirements compared with recycling steel, in order to reduce cost
the refinement from iron ore. The Steel of production and wastage.

86
5.16 Steel-Servicing Centres the promise of better brand and
possibility of companies leveraging
Most of the steel plants have the this to ensure higher brand loyalty
capability to produce in small tonnages amongst its customers, has led to a
in varied sizes, but usually production number of steel manufacturers taking
is done in large lots in order to minimize tentative steps towards establishing
cost by taking advantage of economies their own labels. Brands give an
of scale. Steel service centres can otherwise indistinguishable product a
act as a savior here for those end new identity and they serve as a mark,
users who want to reduce their own an assurance of quality and allow
financial investments by getting the the company concerned to charge
material they want without spending a premium for the products after
on equipment and machinery. Steel consumer acceptance. Some of the
service centres are processing and prominent steel brands in the market
distributing intermediaries who act as
are Tata Tiscon, Tata Shaktee GC
a bridge to meet the gap between steel
Sheet; SAIL’s Salem Stainless, SAIL
makers and customers by processing
Jyoti, SAIL TMT; and Essar’s 24-Carat
steel into small sizes as generally
Steel. The incidence of branding has
required by the small or medium
been limited to few of the top integrated
customers. Steel service centers
players. Indian companies should be
specialize in the processing of steel
encouraged to brand their products for
for the purpose of fabricating, plating,
better prospects in the future.
or molding much needed parts such
as steel bars, balls, tubing, gates,
5.18 Human Resource Develop-
walkways, beams, coils, sheets,
and strips. In essence, steel service ment
centers manipulate and treat steel to
create items useful by almost every In order to make the plans of raising
industry by providing specialized production, master sophisticated
finishing and processing services. technology and for achieving market
Hence, the setting up of such service leadership, it is necessary to have
centres should be encouraged for adequate human resources with
better customer satisfaction and superiority in skills, knowledge and
increased production. resources. It is competent manpower
that would ultimately give the
5.17 Branding industry the competitive edge. This
competence defined in terms of ability
Branding has gained prominence to achieve predetermined goals must
in India over the last few years, and be supplemented with a conducive

87
 environment for work, systems that engineering and manufacturing
enable employees to perform better facilities of key steel plant
and processes that help them to equipment.
ensure maximum productivity at work
place. 5.20 Diversification of Exports in the
Product Champion Categories
5.19 Establishing a Steel Research
Institute In order to maintain the momentum in
exports in the years to come, Indian
While Government owned steel exporters need to follow a more
behemoths like SAIL have their own pronounced market oriented strategy.
state of art infrastructure dedicated to This includes identifying potential
R&D in steel, (for example, Research markets for the steel produced in our
and Development Centre for Iron
country. Given the variety of steel
& Steel (RDCIS) based in Ranchi),
products both in terms quality and its
a national level institute catering
end usage, it becomes important for
to R & D in Steel seems lacking.
the steel producers in the country to
Government of India has recently
identify the target markets across the
announced the Steel Research &
world so as to maximize their returns
Technology Mission of India (SRTMI)
from their exports.
under ‘Make in India, Made in India’
initiative. Under this initiative, it is
suggested that a country level national India needs to further consolidate its
institute be established to promote share in the major import markets,
collaborative research programmes where India already has export
in steel sector. Investment on competitiveness. Based on the analysis
R & D in the steel sector must increase conducted in the current study, the
from present level of 0.2-0.3 % of identified products and markets are
turnover to international benchmark ‘Stainless Steel’ in Africa and Europe;
of 1-2 % of turnover by the leading ‘Stainless Steel’ and ‘Primary Materials;
companies. The institute could carry Products in Granular or Powder Form’
out R&D in priority areas of national in Latin America; and ‘Articles of Iron
importance covering best usage of and Steel (other than Tubes, Pipes and
available raw materials and conserva- Hollow Profiles)’, ‘Tubes, Pipes and
tion of natural resources, optimum Hollow Profiles’, ‘Iron and Non-Alloy
energy conservation and minimum Steel’, and ‘Other Alloy Steel; Hollow
emissions leading to innovations, Drill Bars and Rods, of Alloy or Non-
and in-house development of design, Alloy Steel’ in Oceania.

88
OUTLOOK Taking an optimistic yet reasonable
view of the growth of the economy,
Given the overall scenario presented in the steel demand in the country can
terms of steel demand growth prospects, be expected to grow sufficiently to
raw materials availability and the support the production of 300 million
policy concerns therein, infrastructure tonnes of crude steel by around
shortages and the required actions, 2030-2033. If the production capacity
manpower development needs, and is built earlier, the industry will then
industry actions needed in respect of have to depend on the world market
technology induction and enhancement which will remain challenging if the
of overall productivity and efficiency, competitive strength of the industry is
the government actions and policies not enhanced remarkably and to its full
will have to strategized appropriately potential. To maintain production at 300
so that the development of the industry million tonnes plus levels will require
takes a smooth course. extensive efforts in the areas of mining
of iron ore, coal, manganese ores, etc.
to boost their production and ensure
Infrastructure, automobiles and
that the steel industry finds these raw
consumer durables are the main
materials at competitive prices. It is
drivers for growth of steel industry.
fairly easily understandable that raw
While near-term demand is expected
materials remain the basic advantage
to remain muted, long-term prospects
for the Indian steel industry and in
are forecast to be steady. The domestic
the absence of their easy and low
steel demand is expected to pick up
cost availability, the steel producers
gradually with an expected pickup in
will face high costs of production and
demand in key end-user sectors such remain globally uncompetitive.
as construction, infrastructure and
automobiles. The profitability of the With the natural advantages taken
Indian steel industry is likely to come away, and given the fact that with
under pressure due to deterioration in increased globalization and lowered
the demand-supply equation on the trade barriers, the steel industry faces
back of macroeconomic challenges strong competition from imports, the
being faced by the country. The issues domestic market will no longer remain
confronting the industry needs to be a comfortable place for the domestic
addressed in areas of non-availability industry. Similarly, there is a need to
of raw materials, high price volatility, develop infrastructure to support steel
growing raw materials prices, cheap industry’s growth especially in the
imports, environmental issues and lack areas where steel plants are likely to
of demand. be located.

89
 Annexure 1: Apparent Consumption
of Finished Steel (million tonnes)

Year Apparent Consumption (+/- variation)

1991-1992 14.83
1992-1993 15.81 (6.6%)
1993-1994 16.11 (2.0 %)
1994-1995 19.55 (21.3 %)
1995-1996 22.37 (14.4 %)
1996-1997 23.29 (4.1%)
1997-1998 23.80 (2.2%)
1998-1999 24.71 (3.8%)
1999-2000 26.34 (6.6%)
2000-2001 27.64 (4.9%)
2001-2002 28.52 (3.2%)
2002-2003 30.67 (7.6%)
2003-2004 33.11 (8%)
2004-2005 3637 (9.8%)
2005-2006 41.43 (13.9%)
2006-2007 46.78 (12.9%)
2007-2008 52.12 (11.4%)
2008-2009 52.35 (0.4%)
2009-2010 59.33 (13.3%)
2010-2011 66.42 (11.9%)
2011-2012 71.021 (6.92%)
2012-2013 73.482 (3.5%)
2013-2014 73.895 (0.6%)
Source : JPC

90
 Annexure 2: Normalized Revealed
Comparative Advantage of India’s
Exports in Regions

Africa Asia Europe Latin America North America Oceania World

HS NRCA NRCA NRCA NRCA NRCA NRCA NRCA NRCA NRCA NRCA NRCA NRCA NRCA NRCA
HS Description
Codes 2008 2012 2008 2012 2008 2012 2008 2012 2008 2012 2008 2012 2008 2012
Pig iron ,non-alloy, containing
720110 by weight </=0.5% phosphorus 0.4890 -0.1007 0.9478 0.8353 0.5329 0.1470 -0.3175 -0.3955 0.9174 0.8615 0.8091 0.9997 0.60 0.30
in primary form
Pig iron, non-alloy, containing
720120 by weight >0.5% of phosphorus 0.9963 -1.0000 0.9547 -1.0000 0.9826 -1.0000 -1.0000 0.9997 -1.0000 -1.0000 1.00 -1.00
in primary form
720150 Alloy pig iron, spiegeleisen 0.9631 0.5301 0.9381 0.6925 0.8996 0.1116 0.9950 0.9921 0.9676 0.8686 0.90 0.40

Ferro-manganese, containing
720211 by weight more than 2% of -0.1869 -0.3745 0.8422 0.8778 0.8586 0.8473 0.8696 0.9316 0.9577 0.9392 0.80 0.80
carbon

720219 Ferro-manganese, nes -0.4841 -0.6899 0.2483 0.4172 0.6981 0.6042 0.5371 0.4729 0.8833 0.8631 0.9753 0.9788 0.40 0.40

Ferro-silicon, containing by
720221 0.2076 0.1205 -0.1686 0.0154 0.0847 -0.4353 0.0002 -0.4003 0.7672 0.4810 0.9981 0.9810 0.00 -0.20
weight more than 55% of silicon

720229 Ferro-silicon, nes 0.0020 -0.6376 0.6872 -0.0899 0.6288 -0.5060 0.1054 -0.4506 0.4226 -0.4508 0.9234 0.9226 0.50 -0.40

720230 Ferro-silico-manganese 0.3742 0.9403 0.7591 0.9260 0.7890 0.8861 0.8907 0.9295 0.9888 0.9954 1.0000 0.9993 0.80 0.90

Ferro-chromium containing by
720241 -0.2678 -0.4244 0.8157 0.6658 0.9470 0.9081 0.9710 0.9976 0.9914 0.9911 0.9971 0.9998 0.80 0.70
weight more than 4% of carbon

720249 Ferro-chromium, nes -0.7228 -0.9210 -0.4867 -0.8248 -0.5318 -0.9047 0.6249 -0.5098 0.2864 0.1517 0.8556 -0.3578 -0.50 -0.90

720250 Ferro-silico-chromium 0.1307 -0.9977 -0.9378 -0.9994 -0.6825 -0.9958 -0.0321 -0.9665 -0.90 -1.00

91
92
720260 Ferro-nickel -0.9585 -0.9995 -0.9997 -0.9990 -0.9997 -1.0000 -1.0000 -0.4013 -0.9811 -1.0000 -1.0000 -1.00 -1.00

720270 Ferro-molybdenum 0.9602 0.9962 -0.8642 -0.3930 -0.9400 -0.8313 -0.9817 -0.8974 -0.7100 -0.1780 0.1754 0.9522 -0.90 -0.70

Ferro-tungsten and ferro-silico-

720280 -0.8276 0.9832 -0.9986 -0.8830 -0.9957 -0.8212 -0.9893 -0.6101 -0.8455 0.8798 -1.00 -0.80
tungsten
Ferro-titanium and ferro-silico-
720291 0.7912 0.7427 -0.7613 0.4414 -0.9886 -0.9337 -0.9604 0.3902 -0.9610 -0.8256 -0.4000 0.6807 -1.00 -0.90
titanium

720292 Ferro-vanadium -0.9794 -0.8828 -0.8298 -0.0675 -0.7585 -0.1558 -0.3371 0.7985 -0.5671 0.0554 0.5496 0.6066 -0.80 -0.20

720293 Ferro-niobium 0.9798 -0.9788 0.7689 -0.9959 -0.5972 -0.9996 -0.9947 -1.0000 -0.8831 -0.9999 0.9119 -0.9719 -0.90 -1.00

720299 Ferro-alloys, nes 0.6660 0.9533 -0.2818 -0.3394 -0.1059 0.4941 -0.5268 -0.1265 0.5816 0.8292 0.8718 0.9006 -0.20 0.00

Ferrous product obtained by

720310 0.7387 0.7973 0.4267 0.0358 -0.3176 0.1625 -0.8707 0.9499 0.9986 0.9661 0.2843 0.9962 -0.30 0.20
direct reduction of iron ore, nes
Spongy ferrous products, or
720390 iron having a minimum purity by -0.5360 0.8723 0.7995 0.9162 0.7032 0.7725 0.8183 0.2275 0.8863 0.7633 0.50 0.80
weight of 99.94%

720410 Waste and scrap, cast iron -0.4245 -0.8791 -0.4128 -0.8383 -0.6848 -0.9707 -0.4894 -0.9037 -0.7200 -0.9595 -0.8962 -0.9885 -0.60 -1.00

720421 Waste and scrap, stainless steel -0.3497 -0.8210 -0.6469 -0.7871 -0.8800 -0.9516 -0.6438 -0.8503 -0.8649 -0.9258 -0.8408 -0.8876 -0.80 -0.90

Waste and scrap, of alloy steel,

720429 -0.9950 -0.9964 -0.9340 -0.9248 -0.9791 -0.9802 -0.9635 -0.9668 -0.9957 -0.9900 -0.9959 -0.9974 -1.00 -1.00
other than stainless
Waste and scrap, of tinned iron
720430 -0.9949 -0.9970 -0.9034 -0.9825 -0.9882 -0.9977 -0.9900 -0.9973 -0.9614 -0.9949 -0.9905 -0.9991 -1.00 -1.00
or steel
Ferrous waste & scrap, iron
720441 or steel from the mechanical 0.0881 -0.7238 0.1249 -0.9845 -0.6912 -0.9958 0.1461 -0.9768 -0.6450 -0.9957 -0.6498 -0.9778 -0.50 -1.00
working of metal, nes
Ferrous waste and scrap, iron
720449 -0.9806 -0.9911 -0.9812 -0.9957 -0.9926 -0.9984 -0.9478 -0.9935 -0.9962 -0.9992 -0.9839 -0.9974 -1.00 -1.00
or steel, nes
Remelting scrap ingots, of iron
720450 -0.7924 -0.0149 -0.8067 -0.0460 -0.9192 -0.5647 -0.9013 0.6574 -0.9773 -0.8016 -0.9594 -0.6712 -0.90 -0.50
or steel
Granules of pig iron or
720510 -0.9257 -0.3275 -0.6678 -0.2311 -0.8112 -0.4008 -0.5912 0.2636 -0.7882 -0.3198 0.4311 0.9682 -0.80 -0.30
spiegeleisen
 720521 Powders, alloy steel -0.6589 -0.9395 -0.6866 -0.9787 -0.6292 -0.9784 0.9986 -0.2730 -0.7851 -0.9843 0.7847 -0.7608 -0.70 -1.00

Powders, iron or steel, other

720529 0.9023 0.2043 0.2151 0.1487 0.1903 -0.5742 0.6569 0.3390 -0.3587 -0.5002 0.9585 0.6802 0.10 -0.40
than alloy
Ingots, iron or non-alloy steel, of
720610 0.1658 -0.5343 0.5739 0.5573 0.0839 -0.3799 0.1243 0.8605 -0.1421 -0.6536 0.8923 0.7742 0.20 -0.30
a purity of less than 99.94% iron
Primary forms, iron/non-alloy
720690 steel, nes, of a purity < 99.94% -0.2673 -0.8681 0.7550 -0.9795 -0.1725 -0.7644 0.9463 0.6197 -0.7125 -0.9286 -0.1821 -0.7863 -0.20 -1.00
iron
Semi-finished product rectan-
gular including square cross-
720711 0.5963 -0.0485 -0.8923 -0.5552 -0.9403 -0.7813 -0.9267 -0.6551 -0.5971 -0.0903 -0.1705 0.3072 -0.90 -0.70
section, the width measuring
less than twice the thickness
Semi-finished product ,iron/non-
720712 alloy steel, rectangular other 0.9896 -0.9967 0.2221 -0.9997 -0.4216 -0.9999 -0.7196 -1.0000 0.3526 -0.9989 0.9997 -0.7267 -0.30 -1.00
than square cross-section
Semi-finished product, iron or
720719 non-alloy steel, containing by 0.9546 0.9200 0.9561 0.9537 0.8935 0.8501 0.9962 0.9995 0.9768 0.9566 0.9984 0.9984 0.90 0.90
weight <.25% carbon, nes
Semi-finished product, iron/non-
720720 alloy steel, containing by weight 0.7948 -0.3329 -0.2222 -0.9143 -0.5904 -0.9393 -0.6473 -0.8909 0.4903 -0.6648 0.9951 0.9424 -0.40 -0.90
.25%/more carbon
Hot rolled iron/steel, coils,
720810 -0.9032 0.8898 -0.1514 0.9611 0.2230 0.8776 0.2862 0.9548 -0.5473 0.8740 -0.5207 0.8455 -0.30 0.90
>600mm, relief pattern
Hot roll steel, coil, pickled
720825 0.7189 0.9671 0.8674 0.8192 0.7355 0.6682 0.9637 0.9645 0.8484 0.8563 0.9933 0.9993 0.80 0.70
>600mm wide x >4.75mm
Hot roll steel, coil, pickled
720826 -0.6791 -0.7015 -0.3686 -0.1926 -0.4823 -0.1851 0.3089 0.6648 -0.2056 -0.0256 0.5786 0.7122 -0.40 -0.20
>600mm x 3-4.75mm
Hot roll steel, coil, pickled
720827 0.5238 0.6024 -0.0218 -0.5302 -0.0754 -0.5308 0.6116 0.1898 0.3599 -0.3983 0.5999 0.2430 0.00 -0.50
>600mm wide <3mm thick
Hot roll iron/steel nes, coil
720836 0.9159 0.9718 -0.5568 0.5766 0.0162 0.5522 0.8043 0.8727 0.0785 0.7522 0.4859 0.9325 -0.30 0.60
>600mm x >10mm
Hot roll iron/steel nes, coil
720837 0.2771 0.6347 0.5533 0.2812 0.6486 0.0070 0.8439 0.3876 0.6121 0.2127 0.9082 0.6879 0.60 0.20
>600mm x 4.75-10mm
Hot roll iron/steel nes, coil
720838 0.3238 0.7601 -0.8310 0.0382 -0.7452 -0.0064 -0.4647 0.3981 -0.5997 0.4350 -0.1733 0.7012 -0.80 0.10
>600mm x 3-4.75mm

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Hot roll iron/steel nes, coil
720839 0.3824 -0.1583 0.1327 -0.2123 0.2582 -0.0335 0.5675 0.3902 0.6358 0.6145 -0.3936 -0.0783 0.20 -0.10
>600mm x <3mm
Hot roll iron/steel, not coil
720840 -0.9968 -0.7968 -0.9958 -0.1219 -0.9961 -0.4863 -0.9876 0.5496 -0.9958 -0.3786 -0.9924 -0.0785 -1.00 -0.40
>600mm relief pattern
Hot roll iron/steel, not coil
720851 0.8126 0.7289 -0.5643 -0.2190 -0.5297 -0.3131 0.2900 0.4004 0.0146 0.2747 0.9422 0.9469 -0.50 -0.20
>600mm x >10mm
Hot roll iron/steel, not coil
720852 0.4080 0.3674 -0.3797 -0.2233 -0.6342 -0.5828 -0.0470 0.0350 0.0050 -0.0554 0.0453 -0.0123 -0.50 -0.40
>600mm x 4.75-10mm
Hot roll iron/steel, not coil
720853 0.3605 -0.1578 -0.1253 -0.1048 -0.7132 -0.8553 0.0434 -0.1473 0.2000 -0.4249 0.3636 -0.0593 -0.50 -0.70
>600mm x 3-4.75mm
Hot roll iron/steel, not coil
720854 -0.5774 -0.1039 -0.5251 0.3956 -0.7973 0.1171 -0.5645 0.5870 -0.2386 0.6425 0.4313 0.9043 -0.70 0.30
>600mm x <3mm
Flat rolled product, iron/non
720890 alloy steel, not further worked -0.4411 0.1749 -0.4164 0.4177 -0.1561 0.1910 0.7828 0.9379 0.5768 0.7592 0.8552 0.5256 -0.20 0.40
than hot rolled, nes
Cold rolled iron/steel, coils
720915 0.2810 0.7294 0.5507 0.0491 0.4139 0.0209 0.8835 0.8530 0.6255 0.5661 0.8852 0.9220 0.50 0.10
>600mm x >3mm
Cold rolled iron/steel, coils
720916 0.9414 -0.0838 0.2273 -0.6720 0.2930 -0.6035 0.5620 -0.1217 0.6381 -0.3698 0.8633 0.3222 0.30 -0.60
>600mm x 1-3mm
Cold rolled iron/steel, coils
720917 0.5427 0.1903 -0.5499 -0.7789 -0.3736 -0.6389 0.0111 -0.1134 0.2096 -0.2903 0.7115 0.7149 -0.40 -0.70
>600mm x 0.5-1mm
Cold rolled iron/steel, coils
720918 0.6249 0.9601 0.0933 -0.0045 0.8079 0.7627 0.6911 0.7237 0.9258 0.8793 0.9631 0.9925 0.50 0.40
>600mm x <0.5mm
Cold roll iron/steel, not
720925 -0.0135 0.5266 -0.1046 -0.5261 -0.3658 -0.4304 0.9053 0.9596 0.0161 0.0693 -0.5799 -0.5438 -0.20 -0.40
coil>600mm x >3mm
Cold roll iron/steel, not
720926 0.2865 -0.1609 -0.5658 0.1391 -0.8846 -0.6528 -0.7192 0.2577 -0.1757 0.2336 0.1772 0.5806 -0.80 -0.40
coil>600mm x 1-3mm
Cold roll iron/steel, not
720927 -0.5971 0.0038 -0.7328 0.1828 -0.8594 -0.2431 -0.8098 0.3740 0.3727 0.6627 0.4600 -0.80 0.00
coil>600mm x 0.5-1mm
Cold roll iron/steel, not
720928 0.7863 0.8336 0.4734 0.3302 0.4901 0.0513 0.4067 0.7380 0.7667 0.9176 0.9074 0.50 0.30
coil>600mm x <0.5mm
Flat rolled product, iron/non al-
720990 loy steel, not in coil, cold rolled -0.8280 0.3775 -0.3373 0.7662 -0.2523 0.5396 0.0862 0.9457 -0.2933 0.6252 -0.1793 0.3385 -0.30 0.60
>/=600mm wide, nes
 Flat rolled product, iron/non
alloy steel, plated or coated with
721011 0.6836 -0.8806 0.7601 -0.3973 0.7648 -0.4650 0.9489 0.7656 0.7293 -0.5907 0.6587 -0.0681 0.70 -0.50
tin, width>/=600mm,>/=0.5mm
thick
Flat rolled product ,iron/non
alloy steel, plated or coated with
721012 0.7730 0.4816 -0.1862 -0.4299 -0.2915 -0.4575 0.1375 0.0510 0.2320 -0.0343 0.9923 0.9885 -0.20 -0.40
tin,>/=600mm wide,<0.5mm
thick
Flat rolled product ,plated or
721020 coated with lead,>/=600mm -0.5076 -1.0000 -0.9780 -1.0000 -0.9670 -1.0000 -0.9659 -1.0000 -0.8556 -1.0000 -1.00 -1.00
wide, including terne-plate
Flat rolled iron/non alloy steels,
721030 electrolytically zinc coated > -0.7346 -0.7362 -0.9637 -0.9616 -0.9430 -0.9578 0.0675 -0.3516 -0.8499 -0.9302 -0.8651 -0.8153 -0.90 -1.00
600mm
Flat rolled product, iron/non
alloy steels, plated or coated
721041 0.5740 0.8032 0.9165 0.9433 0.9755 0.9932 0.6347 0.8519 0.9839 0.9968 0.9918 0.9981 0.90 0.90
with zinc ,corrugated,>/=600m
wide, nes
Flat rolled product, iron/non al-
721049 loy steels, plated or coated with 0.6892 0.7263 0.6245 0.2482 0.6313 0.3352 0.8890 0.7677 0.8455 0.5923 0.9582 0.9085 0.70 0.40
zinc,>/=600mm wide, nes
Flat rolled product, iron/non
alloy steels, plated or coated
721050 with chromium oxide/or with -0.0521 -0.4251 -0.9730 -0.9534 -0.9596 -0.9360 -0.9594 -0.9457 -0.9228 -0.8959 -0.4332 -0.3611 -1.00 -0.90
chromium and chromium oxides
,>/=600mm
Flat rolled iron/non alloy steels,
721061 coated alum-zinc alloy, width > 0.7435 0.8733 0.4073 0.2221 0.8074 0.7856 0.5585 0.4649 0.9494 0.8932 0.5803 0.6206 0.60 0.50
600mm
Flat rolled iron/non alloy steels,
721069 coated aluminium, width >6 -0.4298 0.8823 -0.9496 -0.4814 -0.9112 -0.2378 -0.4905 0.9466 -0.8321 -0.0931 0.6754 0.2544 -0.90 -0.30
00mm
Flat rolled product, iron/non al-
721070 loy steels, painted, varnished or 0.5771 0.4667 -0.0624 -0.3190 0.1352 0.0400 0.6728 0.7275 0.7244 0.7443 0.9984 0.9998 0.10 -0.10
plastics coated,>/=600mm wide

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96
Flat rolled product, iron/non
721090 alloy steels, clad, plated or 0.8009 0.8378 0.7961 0.6960 0.8558 0.6318 0.9800 0.9724 0.9214 0.7614 0.9908 0.9834 0.80 0.70
coated, >/=600mm wide, nes
Hot rolled (4 faces) iron/non al-
721113 -0.0249 0.3326 0.1745 -0.9580 -0.6959 -0.9954 0.9712 -0.1896 0.2654 -0.9528 0.9802 -0.50 -1.00
loy steel, no coil, no relief <600
Hot rolled (4 faces) iron/non al-
721114 0.8017 0.8623 -0.2544 0.2399 -0.4972 -0.3495 0.4165 0.3589 -0.1824 -0.3947 0.8400 0.1683 -0.40 -0.20
loy steel, nes, <600mm x >4.75
Flat rolled product, iron/non
alloy steels, of a width < 600
mm, simply hot-rolled, not clad,
721119 0.2659 -0.1249 -0.4152 -0.4005 -0.9064 -0.9170 -0.4081 -0.7917 -0.8437 -0.8792 0.9943 -0.3591 -0.80 -0.90
plated or coated, of a thickness
< 4.75 mm “ECSC” (excl. “wide
flats”)
Cold roll iron/steel, <600mm,
721123 0.9996 -0.4823 0.4492 -0.9063 -0.5345 -0.0712 0.4179 -0.6654 -0.0973 0.9993 0.9976 -0.80 -0.20
<0.25% carbon
Flat rolled product, iron/non
721129 alloy steels, hot rolled, <600mm 0.9841 0.9713 0.6734 0.3033 0.4354 0.0896 0.9218 0.8295 0.7474 0.4138 0.9714 0.9948 0.60 0.20
wide nes
Flat rolled product, iron/non
721190 alloy steels, <600mm wide, not 0.3910 0.6932 0.6604 0.1558 0.0913 -0.4269 0.4684 0.3812 0.4671 -0.2411 0.8616 0.8110 0.30 -0.20
clad, plated or coated, nes
Flat rolled product, iron/non al-
721210 loy steels, <600mm wide, plated -0.7001 -0.6353 -0.1698 -0.4906 -0.3527 -0.6888 0.3864 0.2525 -0.1647 -0.6912 0.8196 -0.3768 -0.30 -0.60
or coated with tin, nes
Flat rolled iron/non alloy steels,
721220 width <600mm, electro-plated 0.7006 0.1845 -0.6569 -0.3337 -0.7229 -0.5490 -0.2896 0.0844 -0.5007 -0.1932 0.0596 0.7989 -0.70 -0.40
zinc
Flat rolled product, iron/non al-
721230 loy steels, <600mm wide, plated 0.6378 0.8836 0.0059 0.5217 -0.6750 -0.2490 0.2219 0.7298 -0.0452 0.3711 0.1161 0.2930 -0.50 0.10
or coated with zinc
Flat rolled product, iron/non
alloy steels,<600mm wide,
721240 0.8686 0.9634 0.3555 -0.0344 -0.0316 -0.3356 0.5721 0.3946 0.1771 0.0457 0.9542 0.9333 0.20 -0.10
painted, varnished or plastic
coated
 Flat rolled product, iron/non al-
721250 loy steels, <600mm wide, plated -0.8929 -0.7177 -0.9339 -0.7288 -0.9439 -0.7794 -0.6601 0.0591 -0.8815 -0.6542 -0.9582 -0.8088 -0.90 -0.70
or coated, nes
Flat rolled product, iron/non al-
721260 0.8051 0.0130 -0.2709 -0.7855 -0.7559 -0.8380 0.7683 0.6112 -0.3743 -0.8580 -0.1000 -0.8120 -0.60 -0.80
loy steels, <600mm wide, clad
Bars & rods, iron/non alloy
steels, hot-rolled, in irregularly
wound coils of iron or non-alloy
721310 steel, with indentations, ribs, -0.1807 -0.9546 0.2719 -0.5790 -0.2708 -0.8583 0.6381 -0.6980 0.5072 -0.1880 -0.1573 -0.8023 0.00 -0.80
grooves or other deformations
produced during the rolling
process “ECSC”
Bars & rods, iron/non alloy
721320 steels, hot rolled, in irregular -0.1777 0.0231 -0.0277 0.1086 -0.7620 -0.6155 0.2248 0.1320 -0.1720 -0.0854 0.9709 0.9450 -0.60 -0.40
wound coils, of free cutting steel
Hot rolled bar/rod, irregular
721391 0.0056 -0.4559 -0.5363 -0.4885 -0.7328 -0.7786 -0.6458 -0.6809 -0.1883 -0.1726 0.0168 0.8313 -0.60 -0.70
coils, <14mm diameter
Hot rolled bar/rod, irregular
721399 -0.6409 -0.8825 -0.9257 -0.9223 -0.9373 -0.9530 -0.9779 -0.4537 -0.8529 -0.9009 0.0861 -0.1054 -0.90 -0.90
coils, nes
Bars & rods, iron or non-alloy
721410 -0.3314 0.6112 -0.4081 0.5829 0.0064 0.4019 0.4527 0.2232 0.2657 0.6498 0.9209 0.9743 -0.20 0.50
steel forged
Bars & rods, iron/non alloy
steels, with indentations, ribs,
721420 groves or other deformations -0.8852 -0.8701 -0.9789 -0.9415 -0.9698 -0.9523 -0.9659 -0.9313 -0.7909 -0.7549 -0.7161 -0.6113 -1.00 -0.90
produced during the rolling
process “ECSC”
Bars & rods, iron/non alloy
721430 steels, hot rolled drawn or ex- -0.7218 0.3273 -0.9195 -0.8435 -0.9410 -0.8838 -0.7880 -0.7536 -0.9696 -0.7951 0.8638 -0.0679 -0.90 -0.80
truded of free cutting steel, nes
Bar/rod, rectangular (not
721491 -0.3283 0.3778 -0.2448 0.2304 -0.8490 -0.6109 -0.5235 -0.4655 -0.5077 -0.2684 0.7806 0.9668 -0.70 -0.40
square) nes

Bars & rods, iron/non alloy

721499 -0.0728 -0.1183 -0.2355 -0.1840 -0.6155 -0.5707 -0.0203 0.0149 -0.2237 -0.1738 0.7533 0.8210 -0.50 -0.40
steel, forged etc., nes

97
98
Bars & rods, iron/non alloy
steels, not further worked than
721510 -0.9891 0.1239 -0.9078 -0.5776 -0.9899 -0.9313 -0.9280 -0.6129 -0.9785 -0.9023 -0.4194 0.8374 -1.00 -0.90
cold formed or finished of free
cutting steel
Bar/rod, cold formed/finished,
721550 0.6431 0.5789 0.6600 0.6268 -0.2992 -0.2363 0.8286 0.7490 0.3687 0.3622 0.9407 0.8696 0.00 0.10
nes
Bars & rods, iron/non alloy
721590 -0.3144 -0.1194 0.2947 0.4332 -0.0549 0.0946 0.6618 0.5951 0.3193 0.4448 0.2829 0.0127 0.10 0.20
steels, nes
Sections ,U,I/H, iron/non alloy
steels, not further worked than
721610 0.1152 -0.5950 -0.0299 -0.3487 0.0391 -0.6240 0.1734 -0.4505 -0.0803 -0.4714 -0.6831 -0.8527 0.00 -0.50
hot rolled/drawn/extruded,
height <80mm
Sections, L, iron/non alloy
steels, not further worked than
721621 -0.9087 -0.7652 -0.9655 -0.9534 -0.9356 -0.9451 -0.9651 -0.9756 -0.9135 -0.9492 0.6031 0.7239 -0.90 -0.90
hot rolled, drawn or extruded, of
a height <80mm
Sections ,T, iron/non alloy
steels, not further worked than
721622 -0.2759 0.5334 -0.4576 0.2689 -0.7198 -0.6324 -0.6725 0.0955 -0.0998 0.7411 0.7501 0.9821 -0.60 -0.40
hot rolled, drawn or extruded, of
a height <80mm
Sections ,U, iron/non alloy
steels, not further worked than
721631 -0.2255 -0.4156 -0.8181 -0.4476 -0.8741 -0.8066 -0.4033 -0.2336 -0.5057 -0.3336 0.6909 0.5811 -0.80 -0.70
hot rolled, drawn or extruded,
height 80mm or more
Sections ,I, iron/non alloy
steels ,not further worked than
721632 0.4022 -0.0808 -0.4398 0.1628 -0.8066 -0.6207 -0.3225 0.2591 -0.4004 -0.4045 0.9718 0.9383 -0.70 -0.40
hot rolled, drawn or extruded,
height 80mm or more
Sections ,H, iron/non alloy
steels, not further worked than
721633 -0.4291 -0.2768 -0.8240 -0.8268 -0.7979 -0.8414 0.5701 0.4035 -0.6715 -0.7734 0.9901 0.8181 -0.80 -0.80
hot rolled, drawn or extruded,
height 80mm or more
Sections ,L or T,iron/non alloy
steels, not further worked than
721640 -0.8743 -0.8373 -0.9898 -0.9623 -0.9824 -0.9586 -0.9523 -0.8277 -0.9586 -0.9126 0.9292 -0.5456 -1.00 -1.00
hot rolled, drawn or extruded, h
eight>/=80mm
 Angles, shapes &sections ,iron/
non alloy steels, not further
721650 -0.1168 -0.3240 -0.3449 -0.6144 -0.5870 -0.6768 -0.0973 -0.1427 0.1939 -0.0341 0.4421 0.8598 -0.40 -0.60
worked than hot rolled/drawn/
extruded, height>/=80mm
Angles, shapes etc., iron/non al-
721661 -0.9827 -0.9881 -0.9338 -0.9697 -0.9968 -0.9986 -0.9909 -0.9975 -0.8907 -0.9057 -0.8274 -0.8244 -1.00 -1.00
loy steels, cold formed from flat
Angles, shapes and sections,
721669 0.7218 -0.7166 0.9062 -0.1716 0.7415 -0.6962 0.9181 0.5900 0.7752 -0.6733 0.6652 -0.5424 0.80 -0.60
cold formed, nes
Angles, shapes etc., iron/non al-
721691 -0.6532 -0.9654 -0.6260 -0.9737 -0.9610 -0.9957 -0.6556 -0.6876 -0.6591 -0.9783 -0.3148 -0.5135 -0.90 -1.00
loy steels, cold formed from flat
Angles, shapes and sections,
721699 -0.7911 0.2277 0.2484 0.1892 -0.2610 0.2170 0.8721 0.9288 0.3533 0.6937 0.1824 0.7325 -0.10 0.30
cold formed, nes
Wire of iron or non-alloy steel,
721710 -0.6491 -0.4722 -0.6785 -0.7273 -0.8317 -0.8541 -0.6436 -0.7562 -0.5722 -0.6085 0.7636 0.4529 -0.80 -0.80
not plated/coated
Wire of iron or non-alloy steel,
721720 -0.2009 -0.3539 -0.2359 -0.6717 -0.1742 -0.6006 -0.1509 -0.4956 0.0781 -0.1787 0.3271 0.1301 -0.20 -0.60
zinc plated/coated
Wire of iron or non-alloy steel,
721730 -0.5255 -0.2220 -0.8271 -0.6968 -0.8416 -0.5960 -0.6154 -0.0265 -0.6192 -0.1838 0.8667 0.9574 -0.80 -0.60
metal coat (not zinc)
Wire of iron or non-alloy steel,
721790 -0.0734 -0.0964 -0.0488 -0.0144 0.0960 0.0531 0.4010 0.3180 -0.1195 0.0502 -0.0952 0.0766 0.00 0.00
nes
Ingots and other primary forms,
721810 -0.8545 -0.0158 0.1327 -0.3470 -0.8317 -0.8970 0.8691 -0.1758 -0.7182 -0.8852 0.8853 -0.0151 -0.70 -0.80
stainless steel
Semi-finished stainless steel
721891 -0.9684 -1.0000 -0.9708 -1.0000 -0.9982 -1.0000 0.2129 -1.0000 -0.9684 -1.0000 0.1283 -1.0000 -1.00 -1.00
bar, rectangular
Semi-finished stainless steel
721899 0.9668 0.9704 0.6630 0.5835 -0.1779 -0.3536 0.9215 0.9093 0.5173 0.1756 0.9634 0.8728 0.10 0.00
productnes
Flat rolled product, stainless
721911 steel, hot rolled, in coil, 0.1712 -0.2457 0.2989 -0.3176 -0.0739 -0.5511 0.9999 0.6774 -0.0448 0.8518 0.8417 0.10 -0.40
width>/=600mm,thick> 10mm
Flat rolled product, stainless
721912 steel, hot rolled, in coil, width>/= -0.9942 -0.4343 -0.9868 -0.1787 -0.9929 -0.3101 -0.8972 0.9694 -0.9337 0.7539 0.6160 0.9935 -1.00 -0.20
600mm,4.75</=thick<10mm
Flat rolled product, stainless
721913 steel, hot rolled in coil, width>/= -0.9205 0.0139 -0.9113 -0.1599 -0.8903 0.0261 -0.0375 0.9910 -0.1267 0.9553 0.8093 0.9997 -0.90 0.00
600mm,3</=thick<4.75mm

99
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Flat rolled product, stainless
721914 steel, hot rolled in coil, -0.9869 0.9427 -0.9989 0.6624 -0.9997 0.6093 -0.9869 0.9943 -0.9906 0.9571 -0.9163 0.9985 -1.00 0.70
width>/=600mm,thick< 3mm
Flat rolled product, stain-
less steel, hot rolled, not in
721921 -0.9401 -0.1036 -0.8642 0.2575 -0.9250 -0.2070 -0.1700 0.5601 -0.7029 0.5692 0.5838 0.9895 -0.90 0.00
coils,>/=600mm wide, over
10mm thick
Flat rolled product, stainless
steel, hot rolled, not in coils, w
721922 -0.8829 -0.3407 -0.7078 0.1522 -0.8965 -0.4115 -0.2816 0.6541 -0.4983 0.2302 0.8077 0.9638 -0.80 -0.20
idth>/=600mm,4.75mm</=thic
k</=10mm
Flat rolled product, stainless
steel, hot rolled, not in coils
721923 -0.9988 -0.3609 -0.9957 0.2395 -0.9986 -0.2704 -0.9883 0.8651 -0.9935 0.6331 -0.9006 0.9927 -1.00 0.00
,width>/=600mm,3mm</=thick
<4.75mm
Flat rolled product, stainless
steel, hot rolled, not in coils
721924 0.7239 0.5099 0.2018 -0.0990 -0.0134 -0.2708 0.9556 0.6232 0.0010 -0.3312 0.10 -0.20
,>600mm wide, less than 3mm
thick
Flat rolled product, stainless
721931 steel, cold rolled,>600mm -0.9712 -0.6061 -0.8945 -0.2344 -0.9820 -0.8515 0.5181 0.8003 -0.8652 -0.2125 0.6182 0.9646 -1.00 -0.70
wide,4.75mm or more thick
Flat rolled product, stain-
less steel, cold rolled,
721932 -0.9465 -0.2572 -0.7740 -0.0187 -0.9379 -0.5753 -0.5674 0.4831 -0.5332 0.2548 0.5812 0.7261 -0.90 -0.30
width>/=600mm,3mm</=thick
<4.75mm
Flat rolled product, stainless
721933 steel, cold rolled, 600mm wide, -0.8530 -0.0993 -0.8103 -0.1656 -0.8792 -0.3628 -0.6278 0.3738 -0.5252 0.3146 0.9309 0.9951 -0.80 -0.20
1mm <thick <3mm
Flat rolled product, stain-
less steel, cold rolled,
721934 0.4155 -0.3061 0.1619 -0.5330 0.0998 -0.5173 0.3718 -0.2558 0.8129 0.3402 0.9725 0.9801 0.20 -0.50
width>/=600mm,0.5mm</=thick
<1mm
Flat rolled product, stainless
721935 steel, cold rolled,>600mm wide, -0.8743 -0.8831 -0.9880 -0.9617 -0.9764 -0.9218 -0.9557 -0.8710 -0.9740 -0.8473 0.3578 -1.00 -0.90
less than 0.5mm thick
 Flat rolled product, stainless
721990 0.8226 0.9530 0.0294 0.6265 -0.3759 0.4723 0.9713 0.9747 -0.0024 0.1504 0.6786 0.9859 -0.20 0.50
steel, 600mm or more wide, nes
Flat rolled product ,stainless
722011 steel, hot rolled <600mm wide, 0.9501 0.9359 0.5700 0.9441 0.0253 0.8322 0.9590 0.9961 -0.2808 0.9069 0.9837 0.9995 0.20 0.90
exceeding 4.75mm thick
Flat rolled product, stainless
722012 steel, hot rolled <600mm wide, -0.6330 0.6811 -0.9014 -0.7682 -0.8991 -0.4610 0.5481 0.4525 -0.8011 -0.4386 -0.3985 0.0759 -0.90 -0.60
less than 4.75mm thick
Flat rolled product, stainless
722020 steel, <600mm wide, cold rolled 0.5052 0.7205 -0.6452 0.0552 -0.7803 -0.2876 -0.2791 0.5881 -0.5595 0.2243 0.9303 0.9972 -0.70 -0.10
or reduced
Flat rolled product, stainless
722090 steel, cold rolled <600mm 0.8097 0.8412 0.2418 0.0642 0.3817 0.4228 0.9773 0.9746 0.3917 0.0247 0.6196 0.9559 0.40 0.20
wide, nes
Bars & rods, stainless steel, hot
722100 0.9919 0.9915 0.5073 0.3502 0.5621 0.4170 0.9961 0.9747 0.9217 0.9045 0.9938 0.9910 0.60 0.50
rolled in irregularly wound coils
Hot rolled/extruded stainless
722211 0.9975 0.9971 0.8888 0.7112 0.4811 0.1785 0.9843 0.8609 0.8593 0.5154 0.9582 0.9829 0.70 0.40
steel bars, circular
Hot rolled/extruded stainless
722219 0.4298 0.6674 0.1868 0.1622 -0.5281 -0.6023 0.5292 0.7825 0.0723 -0.1623 0.9088 0.8422 -0.30 -0.30
steel bars, nes
Bars & rods, stainless steel, not
722220 further worked than cold formed 0.9998 0.9926 0.9115 0.8709 0.7222 0.6023 0.9472 0.9461 0.9379 0.8838 0.9991 0.9978 0.80 0.70
or cold finished

722230 Bars & rods, stainless steel, nes 0.7908 0.8388 0.3575 0.6349 -0.2556 0.0632 0.9481 0.9667 0.1757 0.4339 0.7953 0.8487 0.00 0.30

Angles, shapes and sections,

722240 0.9876 0.9877 0.9374 0.9033 0.8888 0.7719 0.9979 0.9916 0.9683 0.9158 0.9890 0.9807 0.90 0.80
stainless steel

722300 Wire of stainless steel 0.9552 0.9966 0.7734 0.7406 0.7910 0.7794 0.9589 0.9423 0.9092 0.8533 0.9859 0.9894 0.80 0.80

Ingots & other primary forms of

722410 0.9915 0.6750 0.9757 0.0481 0.6983 -0.7721 0.9734 0.9633 0.8733 -0.7389 0.9951 0.6133 0.80 -0.60
alloy steel, other than stainless
Semi-finished product of alloy
722490 0.9749 0.9957 0.8717 0.6821 0.4926 0.0020 0.3770 -0.5283 0.7196 0.5019 0.9338 0.9858 0.60 0.20
steel other than stainless
Flat-rolled alloy steel, >600mm,
722511 0.9565 -0.7567 -0.8582 -0.7803 -0.8091 -0.1435 0.0362 -0.8217 -0.7547 0.9559 -0.80 -0.80
grain oriented
Flat-rolled alloy steel, >600mm,
722519 0.9707 0.9766 -0.7276 -0.7979 -0.5786 -0.5848 0.7342 0.8820 0.1761 -0.0916 0.9839 0.9995 -0.60 -0.70
nes

101
102
Flat rolled products of high
722520 1.00
speed steel >/=600mm wide
Flat rolled product, alloy steel,
other than stainless, in coils, not
722530 0.9979 0.9964 -0.8833 -0.5132 -0.8024 -0.1483 -0.4585 0.4881 -0.5215 0.5803 0.9689 0.9889 -0.80 -0.30
further worked than hot rolled,
width>/=600mm,nes
Flat rolled product, alloy steel,
other than stainless, not in coils
722540 0.8947 0.2054 -0.9746 -0.9739 -0.9904 -0.9749 -0.8452 -0.3169 -0.9685 -0.9300 -0.9481 -0.6626 -1.00 -1.00
not further worked than hot
rolled,>/=600mm wide, nes
Flat rolled product, alloy
steel, other than stainless,
722550 0.4779 0.9513 -0.9993 -0.9954 -0.9994 -0.9930 -0.9976 -0.9895 -0.9989 -0.9918 -0.9207 0.2765 -1.00 -1.00
not further worked than cold
rolled,>/=600mm wide, nes
Flat rolled alloy-steel, >600mm,
722591 -1.0000 -1.0000 -0.9979 -1.0000 -0.9974 -1.0000 -0.9870 -1.0000 -0.9962 -1.0000 0.7420 -1.00 -1.00
zinc electro-plated
Flat rolled alloy-steel, >600mm,
722592 -1.0000 0.8476 -1.0000 -0.9607 -1.0000 -0.9853 -1.0000 -0.9263 -1.0000 -0.9820 -1.0000 -1.00 -1.00
zinc coated nes
Flat rolled alloy-steel, >600mm,
722599 -0.0060 0.0466 -0.8128 -0.8547 -0.9422 -0.9362 -0.1251 -0.1995 -0.8600 -0.8273 -0.6544 -0.2243 -0.90 -0.90
nes
Flat-rolled silicon-electrical
722611 0.9966 0.9480 0.0312 -0.3427 -0.4085 -0.5784 0.3246 -0.3966 0.0067 -0.4464 0.8400 0.9934 -0.20 -0.50
steel, grain oriented
Flat-rolled silicon-electrical
722619 -0.1620 0.9097 -0.7682 0.0023 -0.9402 -0.6638 -0.7080 0.3635 -0.7103 -0.0466 -0.1520 0.8528 -0.90 -0.40
steel, nes <600mm
Flat rolled product, of high
722620 0.9980 0.7089 0.9699 0.3647 0.9155 0.8200 0.9831 0.7650 0.9666 0.9882 0.50 0.90
speed steel, <600mm wide
Flat rolled product, alloy steel
,other than stainless, not further
722691 -0.3615 0.8171 -0.9885 -0.9625 -0.9961 -0.9855 -0.8230 -0.8409 -0.9857 -0.9618 -0.8459 -0.4628 -1.00 -1.00
worked than hot rolled,<600mm
wide, nes
Flat rolled product, as, o/t stain-
722699 0.8676 0.8421 -0.0229 0.0823 -0.1799 0.0210 0.3970 0.8639 -0.2433 -0.2976 -0.2568 0.0638 -0.10 0.00
less, <600mm wide, nes
Bars & rods, of high speed
722710 steel, hot rolled, in irregularly 0.9992 0.1317 0.6556 0.4499 -0.2430 -0.7578 0.0426 0.6385 -0.1092 0.9503 0.7173 0.10 -0.50
wound coils
 Bars & rods, of silico-
722720 manganese steel, hot rolled, in -0.9613 -0.9632 -0.9577 -0.9568 -0.4505 -0.6654 -0.9581 -0.9721 -1.00 -1.00
irregularly wound coils
Bars & rods, alloy steel, other
722790 than stainless hot rolled, in 0.9945 0.9062 -0.7337 -0.9707 -0.3690 -0.9084 -0.3225 -0.7028 0.3048 -0.7508 0.9769 0.6594 -0.50 -0.90
irregularly wound coils, nes
Bars and rods of high speed
722810 0.9144 0.5761 0.0160 -0.0431 -0.3114 -0.4329 0.7643 0.5606 0.4709 0.4310 0.2284 0.4794 -0.10 -0.20
steel, nes

Bars and rods of silico-manga-

722820 0.9892 0.6210 -0.7855 0.1565 -0.7099 -0.7689 0.3030 0.9147 0.3164 -0.0207 -0.70 -0.60
nese steel nes
Bars & rods, alloy steel,
other than stainless not further
722830 0.1534 0.3349 -0.7690 -0.6455 -0.6130 -0.4307 -0.2664 -0.0408 -0.4255 -0.4213 -0.1271 0.5004 -0.70 -0.50
worked than hot rolled/drawn/
extruded, nes
Bars & rods, alloy steel,
722840 other than stainless, not further 0.9374 0.8168 -0.8942 -0.8610 -0.9331 -0.8993 -0.3719 0.0888 -0.8291 -0.5068 -0.1163 0.9478 -0.90 -0.90
worked than forged
Bars & rods, alloy steel,
other than stainless, not further
722850 0.9982 -0.7442 -0.8372 -0.9559 -0.9618 -0.8693 -0.8757 -0.9007 -0.9327 0.6461 0.8228 -0.90 -0.90
worked than cold formed/
finished
Bars & rods, alloy steel, other
722860 -0.3225 0.0187 0.3385 0.4710 0.4732 0.3681 0.9497 0.9659 0.3504 0.3644 0.7464 0.8072 0.40 0.40
than stainless, nes
Angles, shapes and sections,
722870 alloy steel, other than stainless, -0.9338 -0.9936 -0.9774 -0.9997 -0.9830 -0.9983 -0.4865 -0.9814 -0.9723 -0.9984 -0.8721 -0.9914 -1.00 -1.00
nes
Bars & rods, hollow drill, alloy or
722880 0.0555 -0.3328 0.8370 0.3186 0.4031 -0.2476 0.7081 0.0911 0.4884 -0.0416 -0.4421 -0.5610 0.50 -0.10
non-alloy steel

722910 Wire of high speed steel 0.8347 0.9894 1.00

722920 Wire of silico-manganese steel 0.9747 -0.8003 -0.4568 -0.9998 -0.0840 -0.9995 -0.0421 -0.9994 0.6879 -0.9991 0.9323 -0.9827 -0.20 -1.00

Wire of alloy steel, other than

722990 0.4628 0.5236 -0.7470 -0.7308 -0.6296 -0.5989 0.1124 0.0957 -0.4097 -0.1731 -0.3897 0.1073 -0.60 -0.60
stainless

103
104
Sheet piling, iron/steel whether/
730110 not drilled/punched/made from -0.1235 -0.7029 -0.8365 -0.9662 -0.9261 -0.9806 0.7024 0.1609 -0.7157 -0.8850 -0.3221 -0.8898 -0.90 -1.00
assembled elements
Angles, shapes and sections,
730120 -0.5471 -0.0016 0.4271 -0.1576 0.4113 -0.2841 0.9072 0.2755 0.0979 -0.5284 0.6310 -0.3794 0.30 -0.30
welded, iron or steel

730210 Rails, iron or steel 0.2716 0.8123 -0.7438 -0.4139 -0.8476 -0.5679 0.6019 0.9558 -0.7035 -0.3049 0.5425 0.8440 -0.80 -0.40
Switch blades, crossing frogs,
730230 point rods & other crossing 0.7708 0.9045 0.1191 0.4668 -0.7996 -0.1316 0.7556 0.9705 -0.5612 0.1570 0.9550 0.9896 -0.60 0.10
pieces, iron or steel
Fish plates and sole plates, iron
730240 0.7926 0.5036 -0.3347 -0.6518 -0.7343 -0.8596 0.2964 -0.5787 -0.8587 -0.8828 -0.1172 0.2456 -0.70 -0.80
or steel
Rail or tramway construction
730290 0.2680 0.1926 0.4405 0.5811 -0.1769 0.1243 0.6502 0.7173 -0.3753 0.1257 -0.6825 -0.5772 -0.10 0.20
material of iron or steel, nes
Tubes, pipes and hollow profiles
730300 0.9526 0.9830 0.5276 0.6870 0.7512 0.8757 0.8516 0.9832 0.7945 0.9255 0.8010 0.9149 0.70 0.80
of cast iron
Pipes, line, iron or steel, seam-
730410 less, of a kind used for oil or 0.4399 0.3469 0.0727 -0.2032 0.2120 0.0938 0.1134 0.1731 0.5569 0.3850 0.8325 0.8431 0.20 0.00
gas pipelines

730421 Drill pipe (iron or steel) 0.8644 0.8574 0.4520 0.5822 0.7259 0.7236 0.8544 0.7515 0.3213 0.3438 0.8137 0.8679 0.60 0.60

Casings, tubing, drill pipe, for oil

730429 0.7487 0.7579 -0.2968 -0.5244 0.1460 -0.2207 -0.4722 -0.7268 0.2882 -0.2041 0.9556 0.7105 -0.10 -0.40
drilling use
Tubes, pipe & hollow profiles,
iron/non alloy steels, seamless
730431 ,cold drawn or cold rolled cold 0.9545 0.9300 -0.3207 -0.0548 -0.6653 -0.5364 0.2836 0.3939 0.0176 0.1121 0.5698 0.6964 -0.50 -0.30
reduced, of circular cross
section, nes
Tubes, pipe & hollow profiles,
730439 iron or non alloy steel, seam- 0.7842 0.8003 0.0110 -0.2566 -0.5385 -0.6684 0.4884 0.2098 0.1695 0.0014 0.3782 0.8798 -0.30 -0.50
less, of circ cross section, nes
Tube, pipe & hollow profile,
stainless steel, seamless
730441 ,cold drawn or cold rolled cold 0.9566 0.9800 -0.3759 -0.3037 -0.3477 -0.2225 0.9418 0.9514 0.0153 0.0964 0.8986 0.8839 -0.30 -0.20
reduced, of circular cross
section, nes
 Tubes, pipe & hollow profiles,
730449 stainless steel, seamless, of 0.7565 0.0748 0.1921 -0.6799 -0.5027 -0.9082 0.7700 0.1001 0.1204 -0.7424 0.6259 0.0065 -0.30 -0.80
circular cross section, nes
Tubes, pipe & hollow profile,
alloy steel,(other than stainless)
730451 seamless ,cold drawn or cold 0.9923 0.8559 0.0462 -0.2944 0.0138 -0.2917 0.4112 -0.1244 0.3320 -0.2430 0.5289 0.4833 0.10 -0.30
rolled cold reduced of circular
cross section
Tubes, pipe & hollow profile,
alloy steel,(other than stainless)
730459 seamless ,cold drawn or cold 0.9433 0.9616 0.1662 0.3323 -0.3415 -0.0393 -0.0442 -0.0033 0.0701 0.1298 0.8908 0.9038 -0.10 0.10
rolled cold reduced of circular
cross section, nes
Tubes, pipe & hollow profiles,
730490 0.8361 0.8680 0.5961 0.7563 0.5893 0.6094 0.9159 0.8555 0.1784 0.8472 0.7936 0.8225 0.50 0.70
iron or steel, seamless, nes
Line pipe of a kind used for oil
730511 or gas pipelines, Longitudinally 0.9997 0.9960 0.8936 0.7796 0.8982 0.8204 0.9197 0.9597 0.9326 0.9652 1.0000 1.0000 0.90 0.80
submerged arc welded
Other Line pipe of a kind used
730512 for oil or gas pipelines, longitu- -0.0299 0.2654 -0.7378 -0.9693 -0.4178 -0.9343 -0.5309 -0.6569 -0.3079 -0.9289 0.9041 0.9091 -0.60 -0.90
dinally welded
Other Line Pipe, Welded, More
730519 than 406.4mm in External 0.9370 0.9929 -0.4445 0.4125 0.1083 0.8185 0.9962 0.9974 0.1998 0.2320 0.8506 0.9759 -0.10 0.60
Diameter
Casing of a kind used in drilling
730520 0.3236 -0.8245 -0.1714 -0.9325 0.2035 -0.9201 0.3781 -0.8740 -0.1771 -0.9332 0.2600 -0.9006 0.00 -0.90
for oil or gas
Other Tubes and Pipes, Longi-
730531 0.8254 -0.7072 0.5575 -0.9854 0.1394 -0.9945 0.9356 -0.8585 0.7327 -0.9837 0.8912 -0.8981 0.40 -1.00
tudinally welded
Other Tubes and Pipes,
730539 -0.1974 0.7523 -0.9720 -0.3017 -0.9655 -0.5008 -0.7011 0.4840 -0.9697 -0.6181 -0.9027 0.7137 -1.00 -0.40
Welded, of Iron or Steel
Other Tubes and Pipes, Riveted
730590 or Similarly Closed, of Iron 0.6280 0.6046 0.4360 0.4413 0.5600 0.4595 0.9851 0.8288 0.7191 0.7235 0.8643 0.9157 0.50 0.50
or Steel

105
106
Line pipe of a kind used for oil
or gas pipelines, of iron or steel,
730610 of an external diameter of <= 0.9564 0.8996 0.1591 0.1727 0.5340 0.6212 0.2737 0.5423 0.6029 0.6567 0.9435 0.9765 0.40 0.40
406.4 mm (excl. of cast iron and
seamless tubes)
Casing and tubing of a kind
used in drilling for oil or gas of
730620 0.2398 0.0672 -0.9277 -0.9097 -0.4245 -0.1913 -0.9276 -0.8552 -0.9275 -0.9438 0.7476 0.0786 -0.90 -0.90
Iron or Steel, Open Seam or
Welded, Riveted
Other Tubes, Pipes, Hollow Pro-
730630 files, welded, of circular cross 0.3480 0.5652 -0.1266 -0.0776 -0.3890 -0.2704 -0.0788 0.1106 -0.3194 -0.2037 0.5541 0.8855 -0.30 -0.20
section, of iron or nonalloy steel
Other Tubes, Pipes, Hollow Pro-
730640 files, welded, of circular cross 0.9439 0.8064 0.0952 -0.4714 -0.2770 -0.6506 0.6103 -0.2081 0.2659 -0.3466 0.9177 0.8445 -0.10 -0.50
section, of stainless steel
Other Tubes, Pipes, Hollow Pro-
730650 files, welded, of circular cross -0.7704 -0.9605 -0.8096 -0.9831 -0.7316 -0.9594 -0.5448 -0.8954 -0.9196 -0.9885 -0.5835 -0.9632 -0.80 -1.00
section, of other alloy steel
Other Tubes, Pipes, Hollow
730660 Profiles, welded, of non-circular -0.5164 -0.8389 -0.8979 -0.9552 -0.9629 -0.9792 -0.8968 -0.9498 -0.9258 -0.9559 -0.8692 -0.8812 -0.90 -1.00
cross section
Other Tubes, Pipes, Hollow
730690 Profiles, of Iron or Steel, Open 0.3627 0.3579 0.6252 0.5667 0.6861 0.6716 0.8593 0.8784 0.7802 0.6707 0.8259 0.8900 0.70 0.60
Seam, Riveted
Fittings, pipe or tube, of non-
730711 0.9351 0.8440 0.4461 0.2050 0.4167 0.3402 0.6493 0.6390 0.6364 0.6752 0.8770 0.9095 0.50 0.30
malleable cast iron
Fittings, pipe or tube, cast, of
730719 0.6570 0.5659 -0.2631 -0.5915 -0.2811 -0.5215 -0.1278 -0.2772 -0.2807 -0.4888 0.7320 0.6927 -0.20 -0.50
iron or steel, nes

730721 Flanges, stainless steel 0.9677 0.9247 0.7983 0.6593 0.7577 0.6914 0.9752 0.9553 0.9211 0.8779 0.9702 0.9665 0.80 0.70

Threaded elbows, bends and

730722 0.5442 0.5923 -0.3123 -0.0610 -0.5099 -0.1641 0.2616 0.5894 -0.7885 -0.6254 0.4933 0.5049 -0.50 -0.20
sleeves of stainless steel
Fittings, butt welding, stainless
730723 0.6335 0.7843 -0.3942 -0.6955 -0.6954 -0.7869 0.0518 -0.0966 -0.4245 -0.5710 0.2457 0.2900 -0.60 -0.70
steel
Fittings pipe or tube of stainless
730729 0.7496 0.5662 0.2371 -0.0603 -0.0030 -0.1556 0.6488 0.7023 0.0379 -0.1421 0.6313 0.5763 0.10 -0.10
steel, nes
 730791 Flanges, iron or steel, nes 0.9385 0.9291 0.3015 0.5985 0.4338 0.6433 0.9422 0.9720 0.7117 0.7993 0.8691 0.9667 0.40 0.70

Threaded elbows, bend and

730792 0.8192 0.6540 0.2155 -0.2340 0.1854 -0.0065 0.2568 -0.0964 -0.2742 -0.5125 0.6980 0.4951 0.10 -0.20
sleeves, iron or steel, nes
Fittings, but welding, iron or
730793 0.9282 0.7794 -0.6374 -0.6929 -0.6524 -0.6438 0.0439 -0.0738 -0.3093 -0.4603 0.9304 0.9243 -0.60 -0.60
steel, nes
Fittings, pipe or tube, iron or
730799 0.1911 0.4092 -0.3267 -0.1266 -0.4929 -0.1610 0.1391 0.5522 -0.2920 -0.1313 0.1506 0.4263 -0.40 -0.10
steel, nes
Bridges and bridge sections,
730810 -0.3622 0.2100 -0.6503 -0.3524 -0.6442 -0.6080 0.4433 0.5047 -0.4455 -0.4120 -0.1466 -0.0121 -0.60 -0.50
iron or steel
Towers and lattice masts, iron
730820 0.4014 0.6012 0.7530 0.6807 0.7093 0.5508 0.7504 0.5927 0.8075 0.7324 0.9775 0.9577 0.70 0.60
or steel
Doors, windows & their frames
730830 & thresholds for doors of iron -0.3604 -0.2353 -0.7444 -0.7308 -0.8021 -0.7827 -0.6477 -0.3225 -0.7490 -0.7306 -0.2913 -0.0385 -0.80 -0.70
or steel
Props & similar equipment
730840 for scaffolding, shuttering/pit- 0.3738 0.1444 0.4282 0.2867 0.0709 0.0276 0.8764 0.8538 0.7979 0.7546 0.8972 0.7636 0.30 0.20
propping, iron/steel
Structures & parts of structures,
730890 iron/steel (ex prefabricated 0.3138 0.2326 -0.0743 -0.2627 -0.1743 -0.2388 0.3957 0.2168 0.2588 0.1682 0.7108 0.4115 -0.10 -0.20
buildings of heading no.9406)
Reservoirs, tanks, vats & similar
container, capacity >300L,iron
730900 0.1848 -0.2929 -0.3063 -0.4777 -0.5133 -0.6128 -0.0013 -0.3258 -0.3767 -0.5588 0.0609 -0.1705 -0.40 -0.50
or steel(excluding liquid/com-
pressed gas type)
Tanks, casks, drums, cans,
boxes & similar container, iron
731010 -0.2588 -0.0911 -0.1510 -0.1896 -0.6890 -0.6102 -0.5312 -0.5382 -0.6638 -0.6273 -0.3226 -0.2823 -0.60 -0.50
or steel, capacity >/=50L but
<300L
Cans, iron or steel, capacity <50
731021 litres, to be closed by crimping -0.5445 -0.4547 -0.4399 -0.2020 -0.8818 -0.7637 -0.5868 -0.2861 -0.6254 -0.1891 -0.5332 -0.0030 -0.80 -0.60
o soldering, nes
Cans, iron or steel, capacity
731029 -0.4583 -0.0072 -0.2878 -0.3983 -0.4479 -0.2757 -0.1270 -0.0270 -0.0983 -0.2110 -0.3475 0.2794 -0.40 -0.30
<50 litres nes
Containers for compressed or
731100 0.7341 0.8086 0.2926 0.4044 0.1578 0.3453 0.1145 0.4849 0.3335 0.4650 0.6414 0.7238 0.20 0.40
liquefied gas of iron or steel

107
108
Stranded wire, ropes & cables
731210 of iron or steel, not electrically 0.4963 0.3513 0.0034 -0.2143 0.1423 -0.0811 0.4880 0.3102 0.4747 0.1875 0.7950 0.6299 0.10 -0.10
insulated
Plaited bands, slings and the
731290 like of iron or steel, not electri- 0.0261 0.3122 -0.4726 -0.1893 -0.3183 0.2396 0.5590 0.8204 0.1506 0.4463 0.3814 0.4547 -0.30 0.10
cally insulated
Wire, barbed, twisted hoop,
731300 single flat of twisted double of -0.8409 -0.7073 -0.4605 -0.4940 -0.4179 -0.2514 -0.8619 -0.7733 -0.3943 0.0424 -0.2587 -0.3090 -0.50 -0.40
iron or steel, for fencing
Endless bands for machinery,
731412 -0.8217 0.6023 -0.7382 0.6451 -0.9498 -0.2222 -0.8869 0.7920 -0.9386 -0.1157 -0.9301 -0.3880 -0.90 0.00
woven stainless steel
Woven product, stainless steel,
731414 0.6772 0.2523 -0.3879 -0.7110 -0.4717 -0.5989 0.0936 0.1575 -0.3014 -0.4974 0.7443 0.6345 -0.40 -0.60
except endless bands
Woven product, iron or steel,
731419 0.4090 0.3921 -0.1225 0.3520 -0.2258 0.0790 0.4497 0.2322 -0.1689 0.0481 0.6160 0.7010 -0.10 0.20
other than stainless
Grill, netting and fencing, weld-
ed at the inter-section, of wire
with a maximum cross-sectional
dimension of 3 mm (0118 inch)
731420 -0.6017 -0.8970 -0.6709 -0.6570 -0.9694 -0.9734 -0.6105 -0.7197 -0.5912 -0.4332 -0.6249 -0.6584 -0.90 -0.90
or more and having a mesh size
of 100 cm2 (155 square inches)
or more (concrete reinforce-
ment mesh)
Grill, netting, welded junctions,
731431 -0.6180 -0.7735 -0.9152 -0.9069 -0.9350 -0.9359 -0.9398 -0.8048 -0.8480 -0.8575 -0.8825 0.1859 -0.90 -0.90
zinc plated/coated
Grill, netting, welded junctions,
731439 -0.0862 -0.8243 -0.0753 -0.7044 -0.4582 -0.9105 -0.1731 -0.8043 0.1169 -0.6174 -0.1335 -0.4663 -0.30 -0.80
nes
Grill, netting, fencing, iron or
731441 -0.0743 -0.0260 -0.7025 -0.6544 -0.6858 -0.4410 -0.8750 -0.7338 0.0772 0.2345 -0.1268 -0.5751 -0.70 -0.50
steel, plated or coated with zinc
Grill, netting, fencing, iron or
731442 0.5260 0.6472 -0.5318 -0.3139 -0.7054 -0.3551 -0.5008 -0.3116 -0.4640 0.0129 0.5943 0.7872 -0.60 -0.30
steel, plastic coated
Grill, netting, fencing, iron or
731449 -0.5320 -0.7530 -0.8853 -0.8556 -0.6175 -0.7342 -0.2990 -0.5769 -0.4677 -0.2665 -0.7588 -0.3504 -0.80 -0.80
steel, nes

731450 Expanded metal, iron or steel -0.9173 -0.9070 -0.9575 -0.8994 -0.9681 -0.9343 -0.9680 -0.9549 -0.9550 -0.8881 -0.8714 -0.2031 -1.00 -0.90
 731511 Chain, roller, iron or steel 0.9478 0.7330 -0.2096 -0.8156 0.0907 -0.6273 0.7734 0.0889 0.3820 -0.5416 0.8233 0.3575 0.00 -0.70

Chain, articulated link, iron or

731512 0.6887 0.2172 0.2010 -0.1096 -0.2460 -0.6443 0.3864 0.2467 -0.1355 -0.5333 0.4163 0.2902 -0.10 -0.50
steel, nes
Chain parts, articulated link,
731519 0.5973 -0.0166 -0.3090 -0.8855 -0.3033 -0.7898 0.1704 -0.1367 -0.3779 -0.7639 0.5766 -0.3687 -0.30 -0.80
iron or steel

731520 Chain, skid, iron or steel -0.1197 -0.2129 -0.9650 -0.9669 -0.9899 -0.9854 -0.9563 -0.2518 -0.9565 -0.9066 -0.9355 -0.4469 -1.00 -1.00

731581 Chain, stud link, iron or steel 0.0385 -0.6151 -0.9599 -0.9781 -0.8910 -0.9056 -0.6840 0.3599 -0.5191 -0.8684 0.3433 -0.2402 -0.90 -1.00

Chain, welded link, iron or

731582 -0.9009 -0.8814 -0.9668 -0.9555 -0.9719 -0.9529 -0.9583 -0.9028 -0.9073 -0.8643 -0.8736 -0.6296 -1.00 -0.90
steel, nes

731589 Chain, iron or steel, nes 0.7315 -0.4851 0.3443 -0.7707 0.5302 -0.6319 0.9161 0.4105 0.6178 -0.4621 0.7367 -0.1537 0.50 -0.70

731590 Chain parts, iron or steel, nes 0.3882 0.2885 0.0959 -0.1365 -0.3984 -0.4418 0.2700 0.7827 0.0630 -0.4449 0.5976 0.5538 -0.20 -0.30

Anchors, grapnels and parts

731600 0.4494 0.0208 -0.3474 -0.4238 -0.0343 -0.2819 -0.2943 0.6818 -0.0894 -0.3297 -0.1681 -0.3116 -0.20 -0.30
thereof of iron or steel
Nails, staples& similar articles,
iron or steel, excluding article of
731700 -0.5387 -0.4931 -0.9133 -0.8966 -0.8231 -0.7734 -0.6941 -0.6108 -0.6666 -0.5336 -0.4912 -0.4103 -0.90 -0.80
head No 8305 and articles with
copper heads

731811 Screws, coach, iron or steel 0.9952 0.9859 0.9664 0.8507 0.9289 0.7731 0.9970 0.9724 0.9736 0.8706 0.9862 0.9629 0.90 0.80

731812 Screws, wood, iron or steel, nes 0.6790 0.4866 -0.8836 -0.6712 -0.8996 -0.7416 -0.0079 0.6341 -0.2680 -0.1396 0.5833 0.6938 -0.90 -0.70

Screw hooks and screw rings of

731813 0.6908 0.1030 -0.2001 -0.7445 -0.4691 -0.7834 0.5071 0.3789 -0.7689 -0.8322 0.5804 -0.4866 -0.40 -0.80
iron or steel
Screws, self-tapping, iron or
731814 0.0202 0.8019 -0.9889 -0.8486 -0.9879 -0.8421 -0.6104 0.4848 -0.9591 -0.5317 -0.8971 0.6578 -1.00 -0.80
steel
Bolts or screws nes, with or
731815 without their nuts or washers, 0.7730 0.7402 -0.2249 -0.1771 -0.1002 -0.0535 0.7111 0.6667 -0.0234 0.0028 0.6097 0.7393 -0.10 -0.10
iron or steel
731816 Nuts, iron or steel, nes 0.8784 0.9327 -0.3895 -0.0424 -0.0801 0.2745 0.6606 0.8063 -0.2193 0.0700 0.7864 0.9110 -0.20 0.10

109
110
Threaded articles of iron or
731819 0.7093 0.9260 0.1240 0.4073 -0.0071 0.2663 0.7800 0.8846 0.3252 0.5395 0.7938 0.8847 0.10 0.40
steel, nes
Washers, spring or lock, iron
731821 0.9436 0.6164 0.1071 -0.0609 -0.3068 -0.4894 0.6937 0.5293 0.1660 -0.0899 0.8949 0.6092 -0.10 -0.30
or steel

731822 Washers, iron or steel, nes 0.7728 0.8556 -0.0539 0.0253 0.1436 0.1786 0.5796 0.6032 0.0916 0.0751 0.8181 0.2598 0.10 0.10

731823 Rivets, iron or steel 0.0505 0.2395 -0.7790 -0.7149 -0.7465 -0.6864 -0.4210 0.0076 -0.8396 -0.8051 -0.1297 0.3322 -0.80 -0.70

Cotters and cotter-pins, iron

731824 0.5111 0.4891 -0.6606 -0.6285 -0.4998 -0.4786 -0.1456 -0.0365 -0.7398 -0.7681 0.4758 -0.0004 -0.60 -0.60
or steel
Non-Threaded articles of iron or
731829 0.8000 0.6627 0.1890 0.1651 -0.3380 -0.4075 0.4789 0.4773 -0.3609 -0.3883 0.5889 0.5226 -0.20 -0.20
steel, nes
Needles, sewing, darning or
731910 0.7284 -1.0000 0.90 -1.00
embroidery, iron or steel

731920 Pins, safety, iron or steel 0.9217 -0.3657 0.8563 0.4533 0.7939 -0.0665 0.8474 0.00 0.90

731930 Pins, iron or steel, nes 0.8897 0.9462 -0.3457 -0.3087 0.7105 0.7447 0.9020 0.9692 -0.1379 0.3558 0.7263 0.9263 0.00 0.10
Articles for use in the hand,
731990 iron or steel, similar to sewing 0.9454 0.9781 0.3452 0.4907 0.7120 0.7808 0.8634 0.9600 0.6474 0.8502 0.9333 0.9577 0.60 0.70
needles or pins
Springs, leaf and leaves there-
732010 0.0466 0.9014 0.5364 0.2539 0.0169 -0.0002 -0.4369 -0.5528 0.1982 0.1867 0.9398 0.9123 0.10 0.00
for, iron or steel

732020 Springs, helical, iron or steel -0.0132 0.1950 -0.7793 -0.8681 -0.9036 -0.9358 -0.8484 -0.9213 -0.8960 -0.9394 -0.5637 -0.3711 -0.90 -0.90

732090 Springs, iron or steel, nes 0.7651 0.7615 0.0056 0.0357 -0.3266 -0.3861 0.3817 0.3483 0.0075 -0.0854 0.3974 0.3035 -0.20 -0.20
Cooking appliances & plate
732111 warmers for gas fuel or both -0.4683 -0.9164 -0.8254 -0.9326 -0.8457 -0.8970 -0.9083 -0.9607 -0.7644 -0.8900 -0.1996 -0.1819 -0.80 -0.90
gas & other fuels,iron or steel
Cooking appliances & plate
732112 warmers for liquid fuel, iron 0.0375 0.3962 -0.6320 -0.6107 -0.1671 0.3423 0.5044 0.6086 -0.2472 0.0373 0.7580 0.8280 -0.40 -0.30
or steel
 Cooking appliances & plate
732113 warmers for solid fuel, iron -0.9361 -0.6976 -0.9903 -0.9874 -0.9802 -0.9647 -0.9180 -0.7698 -0.9678 -0.9267 -0.6197 -0.7193 -1.00 -1.00
or steel
Other Non-electric Domestic
732181 Appliances For gas fuel or for 0.1257 -0.4452 -0.9610 -0.9656 -0.9050 -0.9406 -0.7263 -0.8972 -0.8934 -0.9671 -0.8342 -0.9181 -0.90 -1.00
both gas and other fuels
Other Non-electric Domestic
732182 -0.9682 -0.9284 -0.9981 -0.9981 -0.9974 -0.9918 -0.7994 -0.7927 -0.9877 -0.9608 -0.9968 -0.9932 -1.00 -1.00
Appliances For liquid fuel
Other Non-electric Domestic
732183 -0.0608 0.4949 -0.9381 -0.7810 -0.9845 -0.9541 -0.6989 -0.1756 -0.9483 -0.7119 -0.8374 -0.0403 -1.00 -0.90
Appliances For solid fuel
Parts of Cooking Appliances,
732190 Plate Warmers and Other -0.5331 -0.1003 -0.8853 -0.7247 -0.9035 -0.7144 -0.8752 -0.5649 -0.8489 -0.4857 -0.5486 -0.0362 -0.90 -0.70
Appliances
Radiators and parts thereof,
732211 0.0675 -0.6021 -0.8004 -0.4920 -0.7298 0.9488 0.4306 0.2635 0.0956 0.8654 0.4822 -0.50 -0.70
cast iron
Radiators and parts thereof,
732219 iron or steel, other than cast 0.4814 -0.0829 -0.7135 -0.9384 -0.8982 -0.9768 0.8657 0.3988 0.1008 -0.5217 0.6664 -0.4502 -0.80 -1.00
iron
Air heaters, hot air distributors,
732290 iron or steel & identifiable 0.3992 0.2517 -0.5743 -0.7609 -0.8600 -0.9193 -0.6595 -0.8264 -0.9312 -0.9633 -0.5000 -0.4811 -0.80 -0.90
parts, nes
Iron or steel wool; pot scourers
732310 and scouring or polishing pads, -0.2516 -0.2755 -0.0065 -0.2628 0.3304 0.3396 0.2170 0.1805 0.2515 0.4601 0.7721 0.8567 0.20 0.00
gloves and the like
Table, kitchen or other house-
732391 hold articles of cast iron, not 0.9759 0.3007 0.6266 -0.3864 0.8866 0.4950 0.9675 0.9565 0.7861 0.4678 0.9877 0.8504 0.80 0.00
enamelled
Table, kitchen or other
732392 household articles of cast iron, 0.0100 0.0733 -0.4263 -0.6953 -0.6876 -0.7659 0.0466 0.0621 -0.3110 -0.4194 0.6807 0.0209 -0.60 -0.70
enamelled
Table, kitchen or other house-
732393 0.9562 0.9527 0.3549 0.3121 0.6319 0.6058 0.9034 0.9117 0.8374 0.8277 0.8807 0.9455 0.60 0.50
hold articles of stainless steel
Table, kitchen or other house-
732394 hold articles & parts thereof, 0.9494 0.9544 0.9173 0.8321 0.9595 0.8989 0.9687 0.9346 0.9822 0.9351 0.9969 0.9954 0.90 0.90
iron or steel, enamelled, nes

111
112
Table, kitchen or other house-
732399 hold articles & parts thereof, of 0.8697 0.9026 0.2029 -0.1136 0.5038 0.6079 0.8779 0.9173 0.8000 0.8590 0.8648 0.9371 0.40 0.30
iron or steel, nes
Sinks and wash basins, stain-
732410 0.2911 -0.4107 -0.4045 -0.8681 -0.5166 -0.8021 -0.3705 -0.7233 0.1689 -0.3577 0.3418 0.1672 -0.40 -0.80
less steel
Baths, cast iron, enamelled
732421 0.6593 -0.2363 -0.0931 -0.9373 0.0752 -0.8987 0.9389 -0.2235 0.5081 -0.7694 0.10 -0.90
or not

732429 Baths, iron or steel, nes 0.3292 0.4720 0.4179 -0.2216 -0.4392 -0.7288 0.7704 0.5027 0.3367 -0.2288 0.6041 0.1509 -0.20 -0.50
Sanitary ware & parts thereof,
732490 iron or steel, nes, for example -0.1146 -0.4878 -0.3384 -0.7561 -0.1468 -0.6367 0.5825 0.2280 0.0559 -0.3753 0.4026 0.0086 -0.20 -0.70
bedpans, douche cans
Cast articles of non-malleable
732510 0.9131 0.9763 0.5330 0.5380 0.0920 0.0387 0.8312 0.7111 0.8479 0.7523 0.8855 0.8530 0.30 0.30
cast iron nes
Balls, grinding and similar
732591 articles of iron or steel, cast 0.6353 0.6235 0.7621 0.8890 0.8561 0.9560 0.5628 0.8160 0.8038 0.8449 0.5020 0.7429 0.80 0.90
for mills
Articles of iron or steel, cast,
732599 0.9911 0.9905 0.8959 0.9079 0.8059 0.8250 0.9797 0.9669 0.8781 0.8978 0.9638 0.9719 0.80 0.80
nes
Grinding Balls and Similar
732611 Forged or Stamped Articles 0.0480 -0.6837 0.1993 -0.5660 0.3673 -0.2329 -0.5074 -0.7668 0.2843 -0.3712 -0.7725 -0.8677 0.10 -0.50
for Mills
Articles of iron or steel, forged
732619 or stamped, but not further 0.9719 0.9849 0.7424 0.8640 0.3841 0.6595 0.5012 0.6292 0.4419 0.6825 0.8172 0.8851 0.50 0.70
worked
Articles of wire, iron or steel,
732620 0.4426 0.8654 -0.1904 0.1893 -0.3034 0.1985 -0.0025 0.5248 -0.0588 0.4970 0.2521 0.7651 -0.20 0.30
nes

732690 Articles, iron or steel, nes 0.2214 0.4900 -0.0926 -0.0715 -0.3595 -0.2151 0.0767 0.1401 -0.1154 -0.0714 0.1536 0.4634 -0.20 -0.10
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South Africa
Fax : (91 44) 28522832
E-mail : [email protected] Phone : (27 11) 3265103/13
Fax : (27 11) 7844511
Guwahati E-mail : [email protected]
NEDFI House, Floor 4, G. S. Road,
Dispur, Guwahati-781006
Phone : (91 361) 2237607, 2237609 Singapore
Fax : (91 361) 2237701 20, Collyer Quay,
E-mail : [email protected] # 10-02, Singapore 049319.
Hyderabad Phone : (65) 65326464
Golden Edifice, Floor 2, 6-3-639/640, Raj Bhavan Road, Fax : (65) 65352131
Khairatabad Circle, Hyderabad 500 004. E-mail : [email protected]
Phone : (91 40) 23307816-21 Fax : (91 40) 23317843
E-mail : [email protected]
Washington D.C.
Kolkata 1750 Pennsylvania Avenue NW,
Vanijya Bhawan, Floor 4, (International Trade Suite 1202, Washington D.C. 20006,
Facilitation Centre), 1/1 Wood Street, Kolkata 700 016.
United States of America.
Phone : (91 33) 22833419/22833420
Fax : (91 33) 22891727 Phone : (1 202) 223 3238
E-mail : [email protected] Fax : (1 202) 785 8487
E-mail : [email protected]
New Delhi
Statesman House, Ground Floor,
148, Barakhamba Road, New Delhi 110 001. Yangon
Phone : (91 11) 23474800 House No. 54/A, Ground Floor,
Fax : (91 11) 23322758/23321719 Boyarnyunt Street,
E-mail : [email protected]
Dagon Township,
Pune Yangon, Myanmar.
44, Shankarseth Road, Pune 411 037. Phone : (95) 1389520
Phone : (91 20) 26403000
Mob. : (95) 931281726
Fax : (91 20) 26458846
E-mail : [email protected] Email : [email protected]

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