ArcelorMittal to build world's single largest steel manufacturing site at Hazira by 2029: Lakshmi Mittal

Lakshmi Mittal, the chairperson of steel manufacturing corporation ArcelorMittal, on Wednesday announced that the corporation will build the world's single largest steel manufacturing site at Gujarat's Hazira by 2029. Mittal was addressing the ongoing Vibrant Gujarat Global Summit (VGGS) 2024 while making the announcement.

The steel baron said that the first phase of the steel manufacturing site will be completed by 2026 whereas the second phase, marked by a Memorandum of Understanding (MoU), will be completed by 2029. Once operational, the expanded manufacturing facility will produce around 24 million tonnes (MT) of steel, making it the world's largest steel manufacturing site.

"Hazira expansion was inaugurated by PM in 2021. Phase one will be completed by 2026, 2nd phase MoU signed, will be completed by 2029 and will produce 24 mn tonnes steel and it will become the world's biggest plant," Lakshmi Mittal said at the summit.

In October 2022, ArcelorMittal arm ArcelorMittal Nippon Steel (AMNS) India had announced an investment of around Rs 60,000 crore to scale up the capacity of the steel plant to 15 MT, company chairman Aditya Mittal told PTI at the time. The investment was for installation of new steel making technologies, setting up new-age machineries and increasing product mix.

The announcement came days after AMNS received environmental clearance for the plant's expansion. The Hazira steel plant expansion was inaugurated by Prime Minister Narendra Modi in 2021. In 2019, ArcelorMittal and Japan's Nippon Steel acquired the Essar Steel Limited plant located in Hazira and renamed it to ArcelorMittal Nippon Steel (AMNS) India.

He added that the expansion of steel manufacturing site at Hazira is in alignment with India's commitment to industrial growth. Not only steel, the ArcelorMittal chairperson also said that the corporation is investing in the realms of renewable energy and green hydrogen.

Meanwhile, Lakshmi Mittal also recounted the last time he attended the summit and Prime Minister Narendra Modi's brief for business and world leaders at the time. "I had come here in September last year for Vibrant Gujarat. PM Modi then briefed us on how this mega-global event has institutionalised structure on the basis of ideas, imagination and process continuity. The PM had then said that India's pride will increase with the theme of 'One Earth, One Family and One Future'."

India's Steel Imports Poised to Reach 6 Million Tons in FY24 Driven by Robust Demand: Crisil

In the period from April to November 2023, India experienced a notable surge in finished steel imports, totaling 4.26 million metric tons, with projections suggesting it may touch the 6 million metric ton mark in the current fiscal year. This insight comes from a comprehensive report by Crisil, coinciding with a time when concerns among steel players are intensifying due to the escalating import figures.

The global steel industry, grappling with challenges since the onset of the Russia-Ukraine conflict, is anticipated to see a modest recovery with a projected growth of 1.6% in 2023 after a substantial 3.3% decline in 2022, as reported by the global analytics company.

India stands out as a beacon of growth in this scenario, registering a buoyant 13% increase in steel demand, defying the prevailing global trend. The steel sector in India is poised to achieve its third consecutive year of double-digit growth, projected at 11-13%, following impressive growth rates of 11.4% and 13.4% in fiscal years 2022 and 2023, respectively.

Crisil attributes this robust growth to strong domestic demand, bolstered by government investments in infrastructure, building, and construction segments. Despite global industry challenges and a potential slowdown, Crisil anticipates India's steel imports to remain elevated around the 6 million ton mark for this fiscal year.

Adding complexity to the global steel dynamics, Chinese mills have aggressively entered the market, pushing volumes at highly competitive prices. Between January and November of the current year, China's steel exports surged by 35.6% to reach 82.7 million tons, marking the highest figure since 2016. Notably, Chinese exports to India have also witnessed a substantial increase.

As of November in the current fiscal year, India imported 4.26 million metric tons of finished steel, reflecting a 13.4% year-on-year increase. In contrast, its steel exports declined by 6.2% to 4.03 million metric tons, solidifying India's status as a net importer of finished steel.

Sehul Bhatt, Associate Director, Research at Crisil Marketing Intelligence and Analytics, shared insights on the import trend. "Last fiscal, steel imports accounted for around 5.6% of domestic demand at 6.7 million tons. We expect imports to hover around the 5.5% mark this fiscal year as well."

Despite a global uptick in steel prices recorded in November – with a 23% increase in the U.S. and 6% in Europe – a few domestic steel mills have strategically reduced prices by ₹1,500 per tonne in December, aligning with local demand dynamics, as highlighted by Mr. Bhatt. This dynamic pricing strategy underscores the delicate balance between global market forces and local considerations in India's steel industry.

MOIL achieves record-breaking production and sales in July 2023

MOIL Limited, the largest producer of manganese ore in India, has recorded its best-ever performance for the month of July since its inception. The company produced 1.20 lakh tonnes of manganese ore in July 2023, registering a remarkable growth of 71% compared to the same period last year. This is the highest-ever July production achieved by MOIL in its history.

MOIL Limited has also recorded its best-ever sales of 0.94 lakh tonnes in July 2023, witnessing an impressive growth of 69% over the corresponding period last year. The sales performance reflects the strong demand for manganese ore in the domestic and international markets.