Making India of Steel
Steel consumption is the mirror of a country development and progress. Steel is a basic raw material from a pin to a large industry. Development and steel consumption are two side of one coin. In every industry steel is used in any form, like someone may have a notion that steel cannot be used in pharmaceutical companies but how that company can stand without a manufacturing plant where steel is needed. Every industry needs steel in many forms, from machinery to their expansion plan to their main production with steel. About 60% of steel is used in construction and infrastructure.
You can judge a country or state with its steel consumption, the more consumption more development.
In the recent past china grown up like a shooting star in this sector during Olympic. China is producing about 36% of total steel production followed by Japan (9%), US (7%), Russia (5%) and India (4%).
India’s 4 % is almost 53 Million tones which is 11.3 % from that last year and India’s per capita consumption is around 43 kg. if we see India’s stand in steel production stage it is still standing lower to other countries. India’s per capita consumption is at 8th rank with 43 kg and 7th rank holding Brazil is consuming around 115 kg. South Korea is smaller in terms of geographical area is consuming biggest chunk of steel (1136 kg).
India’s history of steel production goes back to year 1907 when Tata steel set up its first steel plant in Jamshedpur which is produces about 30 MT per annum. This was not only India’s first steel plan but also the very first in Asia.
India has grown to large extent in steel consumption and production. At the time of independence India was consuming only 1.2 kg of steel but now it is touched to 43 kg. This rise is due to industrialization sector. Earlier India’s maximum GDP was from agriculture sector but now service sector and industrial sector took over the agriculture monopoly of GDP.
Steel consumption is very much effected with service sector and agriculture sector as steel is needed for building offices and many other equipment. So Steel consumption is like mirror image of all the sectors.
As I am doing my internship from SAIL, I got a lifetime chance to know the insight of steel and its market. Now the situation is that my eyes are now made of steel. Everywhere I can see steel and stainless steel in my world and starts thinking about which grade of steel is this ? Why this grade is used? My mind is become a blast furnace which is producing steel all time.
If I start taking my food on plate, I don’t see what is on plate but I start the thinking about the grade of stainless steel used for making that plate. Is it SS 304 or SS 316, then comes to conclusion that no need of SS 316 as SS 316 will be used where to save from halogen chemicals so it would be SS 304. Like that I see knife , it is made up of SS 420 as this is ferromagnetic and very hard and cannot be molded again.
There are many example which I can see in and around my world where I can see a numerous uses of steel and stainless steel from pin to airplanes to large industries.
I never saw that picture of my mind and I can see there is many uses of steel and steel and country development depends on the consumption of steel. Right now India is at 8th position in consuming steel and there is large scope to increase its demand as India is going to boom in all sectors.
To meet demand of Steel in future we have enough base for its raw material except nickel is imported from other countries which is also comes cheaper because of globalization. So the only thing which we need is to have demand and according to that production. In relation to that first steel plant in north is started running on 12th May , 2009 in north east state Tripura, Bodhjungnagar, 12 kilometres north of Agartala with capacity of 150000 Tons per year. Which is going to cater growing economy of north eastern state and Bangladesh?
Recession is just a bumper in India’s economy development road , but after crossing from that India is huge market and huge potential of steel and its demand is going to rise further due rise of all sector. So to match up with the demand we need improved steel plants and more steel plants in future.
With Regards,
Ritesh Ranjan
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