India Stainless Steel

The next Stainless Steel Powerhouse?

REPORT STRUCTURE

Executive Summary

Introduction to Patta Patti

Pattas are a unique product in India. This chapter will introduce the patta market, the
production process and answer the question why pattas are still used today.

Indian Production

The first chapter provides a detailed insight on the Indian STS production in 2009 and 2010.
It first shows the total production volumes for crude STS and finished products by product
form followed by a regional production split (by state). Afterwards the production volume by
producer is shown and each producer is classified in a quality segment. Further the spilt by
grade series is shown for the overall production and by producer. Finally the production
volumes are compared with the installed capacities.

Raw Material Input

Based on the grade split shown in the previous chapter the total raw material content
(chrome, nickel, manganese, molybdenum) of the Indian melt production is calculated.
Afterwards a scrap analysis reveals how much of the raw material content is supplied in form
of scrap.

Exports & Imports

This chapter analysis the development of Indian imports and exports from 2000 to 2010 by
product form. Then the export destinations and origin of import are shown.
Indian Demand
Here the Indian demand is shown by product form and end use segment. For each end use
segment a split by grade and product form as well as an outlook to 2015 is shown. Key
trends for each segment are described.

Outlook

First the additional capacities expected by 2015 are shown by region and by company. Then
the capacity additions will be compared with the expected growth of demand. Further the
expected development by product form and grades will be shown. Finally, the raw material
content is calculated for the year 2015.

Company Profiles

The company profiles are the key part of this report. Details of 36 Indian producers
(integrated, re-rollers and future projects) are shown. Each profile includes the following
information: company background, production equipment, product range, production volume,
distribution and outlook.

India Stainless Steel The Next Stainless Steel Powerhouse?

SMI Steel Market Intelligence GmbH 2012

Page 2

- Table of Contents -

TABLE OF CONTENTS
I. Executive Summary .............................................................................................. 8
II. ABBREVIATIONS ............................................................................................... 30
1

What are Pattas? ............................................................................................. 32

1.1 Patta Market .................................................................................................. 32
1.2 Patta Production Process ............................................................................ 33
1.2.1 Melting & Casting ...................................................................................... 33
1.2.2 Hot Rolling ................................................................................................ 37
1.2.3 Cold Rolling............................................................................................... 39
1.2.4 Annealing & Pickling ................................................................................. 43
1.2.5 Grinding .................................................................................................... 45
1.2.6 Finished Pattas ......................................................................................... 46
1.3 Why are pattas still used instead of coils? ................................................ 48

Indian Production ........................................................................................... 49

2.1 Long Term Stainless Production Trend ..................................................... 49
2.2 Stainless STS Melt Production 2009 2011 ............................................... 50
2.3 Finished Products by Product Form 2009 2011 ...................................... 51
2.3.1 Total Finished Products ............................................................................ 51
2.3.2 Finished STS Flat Products ...................................................................... 52
2.3.3 Finished STS Long Products .................................................................... 53
2.4 Production by Region in 2011 ..................................................................... 55
2.4.1 Stainless Melt Production by Region ........................................................ 56
2.4.2 Hot Rolled Coil Production by Region ....................................................... 59
2.4.3 Cold Rolled Coil Production by Region ..................................................... 61
2.4.4 HR Flats for Pattas Production by Region................................................. 63
2.4.5 CR Pattas Production by Region .............................................................. 65
2.4.6 Long Products Production by Region ........................................................ 66
2.5 Production by Producer in 2010 and 2011 ................................................. 68
2.5.1 Melt Production by Producer ..................................................................... 68
2.5.2 HRC & Plate Production by Producer ....................................................... 69

India Stainless Steel The Next Stainless Steel Powerhouse?

SMI Steel Market Intelligence GmbH 2012

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- Table of Contents -

2.5.3 CRC Production by Producer .................................................................... 70

2.5.4 HR Flats for Pattas Production by Producer ............................................. 71
2.5.5 Major Patta Producers .............................................................................. 72
2.5.6 Total Long Products Production by Producer............................................ 75
2.5.7 Bar Production by Producer ...................................................................... 77
2.5.8 Wire Rod Production by Producer ............................................................. 78
2.5.9 Bright Bar & Wire Production by Producer ................................................ 79
2.5.10 Industry Consolidation by Product Form ................................................. 81
2.6 Production Equipment ................................................................................. 82
2.6.1 Melting ...................................................................................................... 82
2.6.2 Refining ..................................................................................................... 87
2.7 Production by Quality Level ........................................................................ 88
2.7.1 Total Melt Production by Quality Level ...................................................... 89
2.7.2 Quality Level by Region (Melt Production) ................................................ 90
2.7.3 Quality Level by Grade Series (Melt Production) ...................................... 92
2.7.4 Flat Products by Quality Level (Finished Products) .................................. 93
2.7.5 Long Products by Quality Level (Finished Products) ................................ 94
2.8 Production by Grade in 2011 ....................................................................... 95
2.8.1 Melt Production by Grade ......................................................................... 95
2.8.2 Melt Production by Grade & Region .......................................................... 97
2.8.3 Melt Production by Grade & Product Form ............................................... 99
2.8.4 Melt Production by Grade & Producer .................................................... 101
2.9 Installed Capacities in 2009 2011 ........................................................... 104
2.9.1 Total Melt Capacity ................................................................................. 104
2.9.2 Melt Capacity by Region ......................................................................... 105
2.9.3 Capacity by Producer .............................................................................. 107
3

Raw Material Input ........................................................................................ 108

3.1 Total Raw Material Input ............................................................................ 108
3.2 18-8 Scrap ................................................................................................... 110
3.2.1 External 18-8 Scrap Input ....................................................................... 110

India Stainless Steel The Next Stainless Steel Powerhouse?

SMI Steel Market Intelligence GmbH 2012

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- Table of Contents -

3.2.2 Scrap Demand by Region ....................................................................... 111

3.2.3 Raw Material Input Scrap vs. Prime ........................................................ 112
3.3 Nickel Input by Region ............................................................................... 113
3.4 Chromium Input by Region........................................................................ 114
3.5 Raw Material Input by Producer ................................................................ 115
3.5.1 Scrap Input by Producer ......................................................................... 115
3.5.3 Chromium Input by Producer .................................................................. 116
3.5.4 Nickel Input by Producer ......................................................................... 117
4

Exports & Imports ......................................................................................... 118

4.1 All Products ................................................................................................ 118
4.2 Flat Products............................................................................................... 119
4.2.1 Development of FP Imports & Exports .................................................... 119
4.2.2 FP Exports by Product Form ................................................................... 120
4.2.3 FP Exports by Destination....................................................................... 121
4.2.4 FP Imports by Product Form ................................................................... 122
4.2.5 FP Imports by Origin ............................................................................... 123
4.3 Long Products ............................................................................................ 124
4.3.1 Development of LP Imports & Exports .................................................... 124
4.3.2 Development of LP Exports by Product Form ......................................... 125
4.3.3 Development of LP Exports by Destination ............................................. 126

Indian Demand .............................................................................................. 127

5.1 Total Demand .............................................................................................. 127
5.2 Flat Products Demand ............................................................................... 128
5.3 Long Products Demand ............................................................................. 129
5.4 Demand by End Use Segment ................................................................... 130
5.4.1 Flat Products Demand by End Use Segment.......................................... 131
5.4.2 Long Products Demand by End Use Segment........................................ 133
5.4.3 Outlook by Segment ............................................................................... 134
5.5 Building & Construction ............................................................................ 136
5.5.1 Structure by Product Form ...................................................................... 136

India Stainless Steel The Next Stainless Steel Powerhouse?

SMI Steel Market Intelligence GmbH 2012

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- Table of Contents -

5.5.2 Structure by Grade .................................................................................. 136

5.5.3 Outlook.................................................................................................... 137
5.5.4 Background Information .......................................................................... 138
5.6 Process Industries ..................................................................................... 147
5.6.1 Structure by Product Form ...................................................................... 147
5.6.2 Structure by Grade .................................................................................. 147
5.6.3 Outlook.................................................................................................... 148
5.6.4 Background Information .......................................................................... 149
5.7 Transportation ............................................................................................ 167
5.7.1 Structure by Product Form ...................................................................... 167
5.7.2 Structure by Grade .................................................................................. 167
5.7.3 Outlook.................................................................................................... 168
5.7.4 Background Information .......................................................................... 169
5.8 Utensils & Appliances ................................................................................ 184
5.8.1 Structure by Product Form ...................................................................... 184
5.8.2 Structure by Grade .................................................................................. 184
5.8.3 Outlook.................................................................................................... 185
5.8.4 Background Information .......................................................................... 186
6

Outlook to 2016 ............................................................................................. 196

6.1 Capacity Outlook ........................................................................................ 196
6.1.1 Total Melting Capacity until 2016 ............................................................ 196
6.1.2 Additional Melting Capacity per Year until 2016...................................... 197
6.1.3 Additional Capacity by Company ............................................................ 198
6.1.4 Additional Capacity by Region ................................................................ 199
6.2 Demand Outlook ......................................................................................... 200
6.3 Forecast Capacity vs. Production ............................................................. 201
6.4 Raw Material Outlook ................................................................................. 204
6.4.1 Forecast Grade Development ................................................................. 204
6.4.2 Potential Raw Material Input in 2016 ...................................................... 205

Company Profiles .................................................. Error! Bookmark not defined.

India Stainless Steel The Next Stainless Steel Powerhouse?

SMI Steel Market Intelligence GmbH 2012

Page 7

- Executive Summary -

I. EXECUTIVE SUMMARY
How did Indian stainless steel production evolve over the past 30 years?

Indian Stainless Steel Crude Production 1978 2011

Average Annual Growth Rate 16 %
3.000
300 Series

Others (mainly CrMn)

2.500

in 1,000 t

2.000

Growth rates:
300 series
11 % pa
Others (mainly CrMn) 26 % pa
TOTAL STS
16 % pa

1.500
1.000
500
0

Indian stainless steel crude production has been rising very fast, especially since
1990, when CrMn steel production started to take off.
The development of CrMn steels in India was triggered by high nickel prices and a
lack of domestic availability. Producers of household utensils were searching for a
low cost alternative to make stainless steel affordable for the mass market.
Production in 2011 was 162 times higher than in 1978, 13 times higher than in 1990
and almost 3 times higher than in 2000, reaching 2.93 million tonnes in 2011. On
average India had an annual growth rate of 16 % since 1978.

India Stainless Steel The Next Stainless Steel Powerhouse?

SMI Steel Market Intelligence GmbH 2012

Page 8

- Executive Summary -

How much stainless steel is melted in India?

The Indian stainless steel melt production reached 2.93 million tonnes in 2011, up
from 2.73 million in 2010 (plus 7 %). Out of this, slabs account for 31 %, billets for 51
% and ingots for 18 % in 2011. Usually slabs are used for flat products and billets
and ingots for long products. However, as described in the chapter about production
process for pattas, they are made of billets and ingots as well. Thus, this criterion
cannot be used in India for dividing the production volume into flat and long products.

Indian Stainless Crude STS Production

2009 2011

0.79 mill t
31 %

2009

1.24
50 %

Slabs

0,0

0,5

0.52
19 %

Billets*

Ingots*

1.52
51 %

0.89 mill t
31 %

2011

0.48
19 %

1.37
50 %

0.84 mill t
31 %

2010

Total Crude Production:

2009
2.51 million t
2010
2.73 million t (+ 9 %)
2011
2.93 million t (+ 7 %)

1,0

1,5

0.50
18 %

2,0

2,5

3,0

in million tonnes
*incl. billets and ingots for Pattas

India Stainless Steel The Next Stainless Steel Powerhouse?

SMI Steel Market Intelligence GmbH 2012

Page 9

- Company Profiles -

7 COMPANY PROFILES
Company profiles of the following producers are attached to this report. They are
sorted alphabetically:

o Companies with Meltshop

Ambica Steels Ltd.
BRG Group
Chandan Steel Ltd.
Devjas International
Electrotherm (India) Ltd. (Steel Division)
Facor Steels Ltd.
Gee Ispat Pvt. Ltd.
Gilvert Ispat
Goradia Special Steels Ltd.
Hindustan
India Steel Works Ltd. (former Isibars)
JSL Ltd. (Jindal Stainless)
Laxcon Steel Ltd. (Gopal Group)
Mittal Corp. Ltd.
Mukand Ltd.
Panchmahal Steel Ltd.
Rajputana Stainless Ltd.
Ratnesh Metal Industries Ltd.
Rim Jhim Ispat Ltd.
Rohit Ferro-Tech Ltd.
Salem Stainless Steel Plant (SAIL)
Shah Alloys Ltd.
Soni Ispat Ltd.
Star Wire (India) Ltd.
Sunflag Iron & Steel Co. Ltd.
Synergy Steels Ltd.
TI Steels Pvt. Ltd. (TISPL)
Valley Iron & Steel (Bindal Group)
Viraj Group
Visa Steel Ltd.

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India Stainless Steel The Next Stainless Steel Powerhouse?

SMI Steel Market Intelligence GmbH 2012

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- Company Profiles -

o Companies without Meltshop

Bansal Wire Industries Ltd.
Bhandari Foils & Tubes Ltd.
Bhansali Bright Bars Pvt. Ltd.
Chopra Group
Garg Inox Ltd.
Hisar Metal Industries Ltd.
IUP Jindal Metals and Alloys Ltd.
K.P.T. Metal Pvt. Ltd.
Nevatia Steel & Alloys Pvt. Ltd.
Prasum Metals Pvt. Ltd.
Quality Stainless Pvt. Ltd. / Quality Foils (India) Pvt. Ltd.
Raajratna Metal Industries
Rajlaxmi Group
Real Strips Ltd.
Shah Foils Pvt. Ltd.
Sindia Steels Ltd.
SKM Steels Ltd.
Venus Wire Industries Pvt. Ltd.

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India Stainless Steel The Next Stainless Steel Powerhouse?

SMI Steel Market Intelligence GmbH 2012

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