Steel Re-Rolling Mills Association of India · 2015-11-07 · steel is now mandatory in all big construction projects. This is particularly significant since India is a high risk

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SRMA STEEL NEWSLETTER

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Steel Re Rolling Mills Association of India www.sram.co.in

Steel Re-Rolling Mills Association of India www.srma.co.in Email : [email protected]

Sl. No, Name

1. Shri B.M. Beriwala, Chairman

2. Shri Jagmel Singh Matharoo, Vice Chairman

3. Shri Ramesh Kumar Jain, Treasurer

4. Shri Sanjay Jain Committee Member

5. Shri Kailash Goyal “

6. Shri Om Prakash Agarwala “

7. Shri Sushil Sharda “

8. Shri Sandip Agarwal “

9. Shri S S Sanganeria “

10. Shri Sanjay Surekha “

11. Shri R P Agarwal “

12. Shri S S Bagaria “

13. Shri Girish Agarwal “

14. Shri Goutam Khanna “

15. Shri Suresh Bansal “

16. Shri Rajiv Jajodia

“

17. Shri Bhusan Agarwal

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18. Shri Mahesh Agarwal

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19.

Shri Sita Ram Gupta “

20. Shri G P Agarwal

“

21. Shri Suresh Goyal

“

22.

Shri Hari Mohan Beriwala “

23. Shri Sitaram Agarwal “

24. Shri Sonal Mittal

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25. Shri Avinash Bagla

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26. Shri Shankar Lal Agarwal

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27. Shri Sandip Gupta

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28. Shri Dilip Agarwal

Special Invitee

29. Shri Vivek Adukia

Special Invitee

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SRMA Steel News is a division of Steel Re-Rolling Mills Association of India and takes due care in preparing this

news. Information has been obtained by SRMA from sources, which it considers authentic. However, SRMA does

not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or

omissions or for the results obtained from the use of such information. SRMA is not liable for investment decisions,

which may be based on the views expressed in the News. SRMA especially states that it has no financial liability

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published /reproduced in any form without SRMA’s prior written approval.

Latest Steel News

Taxation/Legal (Circular/Notification)

Environment and safety

Events

CONTENTS


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Quake-Proof Steel Checks Damage Latur learnings pay off, many building in India were saved by tremor-resistant steel

olkata – The use of earthquake resistant steel in construction played

a key roll in preventing large scale damage to buildings in a

number of Indian cities on Saturday in the aftermath of disaster in

Napal.

The awareness started to grow after the Latur earthquake in 1993, which led to

widespread disaster across the affected villages in Maharastra. The use of such

steel is now mandatory in all big construction projects.

This is particularly significant since India is a high risk country and has been

bracketed under Seismic Zones III, VI & V. These special steel products like TMT bars go a long way in ensuring

safety and longevity of civil structures.

“During an earthquake, it is usually building collapse that causes loss of lives. Post Latur, there has been growing

awareness about use of such steels in building construction in India. Before that there was no major specification on

use of earthquake resistant steel in large building projects, “P K Dutta, who retired recently as General

Manager(Quality) at Bhilai Steel Plant, said. TMT bars used in India have to comply with certain minimum

requirements defined in IS 1786-2008. The standard defines the minimum requirements of chemical as well as

mechanical properties of the bars.

After the Latur earthquake, Steel Authority of India (SAIL) started developing reinforced bars like Fe 500 to start

with.

This was followed by EQ 500, which was specially produced to make it earthquake resistant. Later it developed

EQR and HCR (or high corrosion resistant) steel bars. At present, the domestic market is dominated by products

from large steel players like SAIL, Tata Steel’s , Tata Tiscon and JSPL’s Panther. A host of medium size producers

of TMT bars which include both national and regional players like SRMB, Kamdhenu, Elegant have also geared up

to meet the quality norms.

“However, a small percentage of products from some of the smaller producers may be of indifferent quality”, Mr.

Dutta pointed out. The latter largely cater to small individual home builders in cities and village who are more price

conscious.

"There is need to create awareness among small home builders about use of products that use requisite quality

parameters. This is particularly important in case of buildings that are planned to come up in earthquake prone

areas," he pointed out.

Properly designed steel structures can have high ductility, which is key characteristic for resisting shock such as

blasts or earthquakes. Steel bars are also used to improve the bond with concrete. The concept of reinforced concrete

evolved due to the fact that steel and concrete act together in resisting force. Concrete has high compressive strength

but low tensile strength. But, when it is used for beams, girders, foundation walls, or floors, concrete must be

reinforced to attain the necessary tensile strength.

THE ECONOMIC TIMES, KOLKATA 28.04.2015

K


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India to register highest steel consumption growth: WSA

India's steel consumption growth is likely to be the highest both in current year and the

next at 6.2% and 7.3%, respectively...

The Bureau | New Delhi | April 21, 2015 11:05 pm

India’s steel consumption growth is likely to be

the highest both in current year and the next at

6.2% and 7.3%, respectively, while all other

major consuming countries such as China, the

US, Japan and Korea are expected to witness a

sharp decline, World Steel Association (WSA)

says in its first short range outlook for 2015.

The short range outlook, prepared by the largest industry body’s Economic Studies Committee

consisting of chief economists of over 40 member companies twice in a year, also forecast

continued negative growth in consumption in China in 2015 and in 2016 due to its government’s

re-balancing efforts, which has a huge bearing on the real estate market.

China posted negative steel growth in 2014 for the first time since 1995. The use of steel in

China shrunk by 3.3% to 710.8 MT in 2014.

WSA, whose members contribute 85% of the global steel production, sees “increased optimism”

about India and forecasts India’s steel use to go up to 80 MT in 2015 and further to 85.8 MT in

2016 from 75.3 MT in 2014, up 2.2% from the previous year.

“In the developing and emerging world, we see increased optimism about India and growth in

steel use in some MENA and ASEAN countries.

While these developments will not be enough to counterbalance the deceleration of China, we

expect to see gradually improving growth prospects beyond 2016,” said Committee chairman

Jurgen Kerkhoff.


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The committee sees slower growth in steel demand internationally which is likely to average at

0.5% in the current year, down from 0.6% in 2014, to stand at 1,544 MT. However, the global

average will be higher at 1.4% in 2016 to touch at 1,565 MT, it said.

The developed world, which recorded a 6.2% growth in steel demand in 2014 on the back of

strong fundamentals and a firming recovery, is going to see a moderate growth in 2015 due to

high base effect by 0.2% in 2015 and by 1.8% in 2016.

Meanwhile, overtaking the US, India became the world’s third largest steel producer during

January-March of the current year. WSA data showed India produced 22.78 MT steel during the

period compared to 19.99 MT by the US.

The Hindu Buisness Line, New Delhi 25.04.2015

Parliamentary committee supports higher import duty on steel

Glut in global market has led to dumping of cheap steel in India

NEW DELHI, APRIL 24:

A Parliamentary panel has agreed with a Steel Ministry proposal to the Finance Ministry on hiking the

import duty on steel, to provide relief to the domestic industry.


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The report of the Standing Committee on Steel and Coal, tabled in the Lok Sabha on Friday, said that the

‘damp trend’ in the domestic steel industry has been accentuated by dumping of cheaper steel from CIS

countries.

China imports surge

Similarly, imports from China in April-January 2014-15 rose to 2.9 million tonnes from 1.08 tonnes in the

previous fiscal year.

Year-wise import-export data of steel show that in 2014-15 imports were at 9.32 million tonnes compared

with 7.93 million tonnes in the previous year.

Serious challenges

“It is understood that the steel sector is facing serious challenges on account of excess steel capacity in the

world, leading to a huge surge of imports in India. The Committee fully agrees with the proposal of the

Steel Ministry and desires that all possible steps, including … revising import duty on imported steel

goods, should be taken by the Steel Ministry with the Finance Ministry at appropriate levels,” the panel

report states.

The panel also criticised the lack of research and development in the steel sector.

It recommended more research and development (R&D) facilities to develop indigenous steel, which can

be used by the power and automotive sectors.

“The Committee is constrained to note that steel for the power and automotive sectors is being imported,

involving outflow of foreign exchange, owing to non-availability of such facilities in the country,” the

panel’s report noted.

Responding to the Parliamentary committee’s concerns, the Steel Ministry said that it was in the process

of creating a body with a Rs. 100 crore contribution from the Central government and Rs. 100 crore from

the steel industry to boost R&D activities.

The Hindu Business Line

Sponge iron makers face tough times on weak demand

April 24, 2015 Last Updated at 23:17 IST

Sluggish demand for finished steel products amid stubborn iron ore rates in the domestic market is giving sponge

iron producers a tough time.

The market for sponge iron has been further dented with steel makers preferring imported steel scraps to sponge iron

to cut production cost. Besides, traders find it competitive to buy finished steel than producing it, sponge iron

producers added.


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“Metal scraps are easy to melt and require less fuel. Since scrap rates have come down globally and are competing

with sponge iron in the domestic market, buyers are preferring scrap,” said an official of MSP Sponge, which has

250,000 tonnes a year production capacity in Odisha.

Sponge iron or directly reduced iron is used as a raw

material in electric arc furnaces and induction furnaces to

produce hot iron metal, with some amount of steel scrap.

Steel makers usually feed sponge iron and steel scrap in a

60:40 ratio in the arc furnace and change the ratio of the

ingredients based on their prevailing prices. Imported steel

scraps are available at Indian ports between Rs 17,700 and

Rs 19,200 a tonne, around similar levels at which sponge

iron makers are offering their products.

Steel scrap imports have not gone up substantially in the

recent past due to costlier dollar. According data compiled

by trade associations and steel sector consultants, metal scrap imports in 2014-15 remained at 4.5 million tonnes

(mt), similar to previous comparable period. The country imported 9.31 mt of finished steel in the last financial year,

an increase of 71 per cent over the previous year.

Production of sponge iron, in the meantime, has gone down. According to New Delhi-based Sponge Iron

Manufacturers Association (SIMA), the total domestic production in calendar year 2014 stood at 17.3 mt, which is

2.8 per cent less than that in 2013.

Manufacturers of sponge iron said given the current input cost, it is difficult to offer the intermediary product below

Rs 17,500 a tonne.

“Iron ore rates in Odisha remained at a stubbornly high level despite weak global cues because of closure of key

mines. This, coupled with sluggish demand from induction furnaces, forced many producers to either cut capacity to

shut down their units,” said Sanjay Pattnaik, executive director, Tata Sponge Iron.

Restrictions and court orders to ban iron ore mining in Odisha has pushed down domestic iron ore output to 115 mt

2014-15, from 136 mt produced in the previous financial year. The slippage in production cushioned a fall in

domestic ore rates.

Low demand for finished steel has also been a factor in poor sponge iron demand.

“The depressed demand in sponge iron can be attributed to the overall weak demand for steel products. The demand

for finished steel in India has been weak for the past couple of quarters and has, in turn, affected demand for sponge

iron,” said Deependra Kashiva, executive director, SIMA.

With the opening up of key mines in Odisha, the top iron ore producing state, raw material rates would fall, said

sponge iron producers. They added that the products would once again have competitive advantage than scrap.

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TAXATION NEWS

Circular No. 1003/10/2015-CX

Dated 05.05.2015 F.No.267/29/2015-CX-8

Government of India Ministry of Finance

Department of Revenue Central Board of Excise and Customs

************

Sub: Clarification regarding Cenvat Credit in transit sale through dealer - reg.

Kind attention is invited to Notification No. 8/2015 – Central Excise (NT) dated 1-3-2015 amending

Central Excise Rules, 2002 (CER). Representations have been received from trade regarding the scope

and purpose of third and fourth proviso inserted in sub-rule (2) of rule 11 particularly with reference to

procedural requirement after the amendment where an indenting or unregistered dealer negotiates

transit sale. For ease of reference these two provisos are reproduced below –

“ Provided also that if the goods are directly sent to any person on the direction of the registered dealer,

the invoice shall also contain the details of the registered dealer as the buyer and the person as the

consignee, and that person shall take CENVAT credit on the basis of the registered dealer’s invoice:

Provided also that if the goods imported under the cover of a bill of entry are sent directly to buyer’s

premises, the invoice issued by the importer shall mention that goods are sent directly from the place or

port of import to the buyer’s premises. “

2. Clarification has also been requested by the trade regarding continued applicability of circular no

96/7/95-CX dt 13-2-1995, 137/48/95-CX dt 18-7-1995 and 218/52/96-CX dt 4-6-1996, in so far as these

circulars pertain to availment of credit on strength of original manufacturer’s invoice where a dealer

including an indenting dealer has procured order and has arranged direct transport of the goods from the

premises of the manufacturer to the premises of the consignee. Further, clarification has also been

sought regarding change in the requirement of registration for dealers consequent upon amendment in

the rules.

3. The issue involved has been examined. It is clarified that the purpose of inserting the third

and fourth provisos in sub-rule (2) of Rule 11 of CER is to allow an additional facility for direct transport of

goods from the manufacturer or the importer to the consignee where the consignee avails Cenvat Credit

on the basis of the Cenvatable invoice issued by the registered dealer or the registered importer. This

facility obviates the need for the goods to be brought to the premises of the registered importer or the

registered dealer for subsequent transport of the goods to the consignee.

4. It is further clarified that the provisions of the circulars on the issues referred in Para 3 would continue

to apply as no amendment has been made in rule 9 of the Cenvat Credit Rules, 2004 which prescribes


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the document on the basis of which Cenvat Credit can be availed. No amendments have been made

regarding registration requirements also.

5. Various specific issues referred to by the trade are clarified as follows –

(i) Where a registered dealer negotiates sale of an entire consignment from a manufacturer or a

registered importer and orders direct transport of goods to the consignee, credit can be availed by the

consignee on the basis of invoice issued by the manufacturer or the registered importer. In such cases

no Cenvatable invoice shall be issued by the registered dealer in favour of the consignee though

commercial invoice can be issued. Where a registered dealer negotiates sale of goods from the total

stock ordered on a manufacturer or an importer to multiple buyers and orders direct transportation of

goods to the consignees and the manufacturer or the importer is willing to issue individual invoices for

each sale in favour of the consignees for such individual sale, the same procedure shall apply.

(ii) Where a registered dealer negotiates sale by splitting a consignment procured from a manufacturer or

a registered importer and issues Cenvatable invoices for each of the sale, it would now be possible for

the dealer to order direct transport of the consignments as per the individual sales to the consignee

without bringing the goods to his godown. This would save time and transportation cost for the dealer

adding to ease of doing business. This is a new facility which flows from the amended provisions.

Procedure as prescribed in the third proviso of rule 11(2) shall be applicable in such case.

(iii) Where a un-registered dealer negotiates sale of an entire consignment from a manufacturer or a

registered importer and orders direct transport of goods to the consignee, credit can be availed by the

consignee on the basis of invoice issued by the manufacturer or the registered importer. As the dealer is

not registered, there is no question of issuing any Cenvatable invoice by him . Such dealers as in the past

can continue to be un-registered.

(iv) Where goods are sold by the registered importer to an end-user (say a manufacturer) who would avail

credit on the basis of importer’s invoice and the goods are transported directly from the port or warehouse

at the port to the buyer’s premises, the amendment prescribes that for such movement the factum of such

direct transport to the buyer’s premises needs to be recorded in the invoice.

6. It may be noted that the new provisos are meant to improve the ease of doing business by providing an

additional facility to the registered dealer or importer for direct dispatch of goods from the manufacturer to

the consignee, when he is issuing Cenvatable invoice,. They do not withdraw any past facility. These

amendments should therefore be harmoniously interpreted with the existing rules and circulars in

conformity with the legal provisions, keeping the intention of the Government in mind. Difficulty faced, if

any, should be brought to the notice of the Board. Hindi version would follow.

Shankar Prasad Sarma

Under Secretary to the Government of India

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ENVIRONMENT & SAFETY

Effects of climate Change

Dependence on fossil fuels

The burning of fossil fuels is the #1 source of human-caused

greenhouse gas emissions. If emissions continue to rise, we’ll

be locked in to devastating rises in temperature. A more

diversified, cleaner energy portfolio and increased energy

efficiency are critical steps toward reducing our emissions.

Vulnerable coasts

About 50% of the global population lives near the coast. But

habitat destruction and land use changes are degrading and destroying wetlands and coastal forests — the

natural buffers that help protect coastal areas against storm surges, rising sea levels and erosion.

Deforestation and land use change

Massive amounts of carbon are stored in tropical forests. When we destroy these areas to clear land for

ranches or farms, that carbon gets released into the atmosphere and accelerates climate change. Studies

show that deforestation accounts for 11% of all human-caused greenhouse gas emissions.

Insufficient funding

Global contributions to climate finance fall severely short of what is needed — even though it would only

take an estimated US$ 70 billion per year (less than 0.1% of global GDP) to make the changes humanity

needs to adapt to a warming world.

CI’s solutions

Scientists estimate that by 2050, we need to reduce worldwide emissions to at least half of their 1990 levels in order

to avoid further harmful impacts from climate change. It’s an urgent challenge, and it requires an equally urgent

response. Around the world, many of the most vulnerable communities are already struggling to cope with the

impacts of climate change.

CI has been pioneering ways to help communities adapt to challenges like rising sea levels, severe storms and more

frequent flooding. We also develop new ways of farming that support a healthy environment, minimize climate

impacts and create a better quality of life for farmers. And, in addition to on-the-ground expertise and scientific

know-how, CI offers practical recommendations that policymakers need to make smart decisions.

http://www.conservation.org/what/pages/climate.aspx?

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Steel Re-Rolling Mills Association of IndiaIndia to register highest steel consumption growth: WSAIndia's steel consumption growth is likely to be the highest both in current year and the next at 6.2% and 7.3%, respectively...

Parliamentary committee supports higher import duty on steelSponge iron makers face tough times on weak demandCI’s solutionsSteel Success Strategies

INTERNATIONAL INNOVATION AND TECHNOLOGY EXHIBITION (INOTEX) 9-12 June 2015, Tehran TEHRAN PERMANENT INTERNATIONAL EXHIBITION FAIRGROUND10th Asian Stainless Steel ConferenceMetal Bulletin Events mailing addressMinerals, Metals, Metallurgy, Materials (MMMM Expo)CIMIE 2015 – the 11th Metallurgy Expo 2015, China

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Steel Re-Rolling Mills Association of India · 2015-11-07 · steel is now mandatory in all big construction projects. This is particularly significant since India is a high risk