Editor's Note

Dear Readers,

The December newsletter of Iron & Steel Review features excerpts from an interview of Shri S. K. Gupta, Chairman & Managing Director of MSTC Limited, India’s most appreciated e-Commerce platform. CMD S. K. Gupta provides a glimpse on MSTC’s performance and e-Commerce services.

The December newsletter also provides a sketch on the performance of the Indian steel industry during the April-October period of FY 2021-22.

Vietnam’s leading steel producer has placed a major order with the world’s one of the premier technology service providers while India’s biggest steel producer has a new Commercial Director. Read the December newsletter to know more!                                                                       

Season’s greetings to all our readers!

Santosh Mahanti, Editor & CMD


“MSTC has been the appreciated e-Commerce service provider for the Central and State Governments for their flagship projects”

Iron & Steel Review’s December issue features an interview with S. K. Gupta, Chairman and Managing Director of MSTC Limited. In this interview, he speaks about the company’s performance in Q2 FY’22 and the current situation of India’s scrap market. He also tells us about MSTC’s e-Commerce platform. Edited excerpts:

How was MSTC’s overall performance in the second quarter of FY’22?

Compared to Q1, the performance is at par in Q2. In Q2, the transaction volume is around Rs. 34,000 Cr. (vis-à-vis Rs. 37,040 Cr. in Q1) and the income is approximately Rs. 59 Cr. (vis-à-vis Rs. 55.31 Cr. in Q1).

What is the current situation of India’s scrap market?

The Government of India (GoI) is taking measures to make India the global hub for manufacturing and to increase the production capacity of steel to 300 Million Tonnes annually by 2030. About 35-40% of the overall 2030 production is expected to come from EAF and IF.

The scrappage policy shall ensure that quality scrap is available for the steel industry. The ambitious “Self-Reliant India” plan to make India a global hub for manufacturing for the automobile, defence, aviation, pharmaceutical, and other industries has been initiated which amplifies demand for ferrous scrap to produce steel and other metals.

The GoI has taken some major steps in the FY’21 budget to boost up the production of steel in India, such as removing duties on imports of scrap and clearing the Voluntary Vehicle Scrappage policy.

MSTC excels in e-Commerce services. We would like to know about the dimensions of MSTC’s e-Commerce platform.

Through its e-Commerce portal, MSTC provides e-Auction as well as e-Procurement services to the clients. This portal is being used for buying and selling of various materials. MSTC has been the appreciated e-Commerce service provider for the Central and State Governments for their flagship projects viz. Spectrum Auction, Coal Block Auction, Mines and Mineral Auctions, Sand Mining Block Auctions, Projects like UDAN, Strategic as well as Asset Sale of sick CPSEs and other Government departments through DIPAM as well as bidding platform for export and import of petroleum products and many more such domains where MSTC has made its presence felt in a big way. We are also providing e-Auction services to large number of PSUs as well as few big Private sector organisations.

Indian steel industry’s performance in April-October 2021

Provisional data released by Joint Plant Committee (JPC) for April-October 2021 indicates that domestic finished steel production stood at 62.877 MT (up by 29.9%), and domestic consumption was at 57.899 MT (up by 26.1%). India was a net exporter of total finished steel with exports (8.809 MT, up by 24.1%) outpacing imports (2.751 MT, up by 17.2%) during this period.

Domestic crude steel production stood at 66.805 MT, up by 24.8% over the same period of last year. Overall, PSU production reported a growth of 35.1%, whereas the private sector players also reported a growth of 22.6%.

Import of total finished steel was valued at Rs. 25,175 Crores (USD 3,400 Million), whereas export of total finished steel was valued at Rs. 63,998 Crores (USD 8,644 Million). Thus, the overall trade surplus (total finished steel) stood at Rs. 38,823 Crores during April-October 2021 (prov.).

V. S. Chakravarthy assumes charge as the Director (Commercial) of SAIL

Vejendla Srinivasa Chakravarthy has taken charge as the Director (Commercial) of Steel Authority of India Limited (SAIL) on December 24, 2021.

A chemical engineer from Laxminarayan Institute of Technology, Nagpur University, Shri Chakravarthy joined SAIL in 1987 in the company’s Central Marketing Organisation.

Rising through the ranks, he became the Executive Director, Marketing in SAIL, before taking over as the Director (Commercial) of the company. He is known for his commercial and marketing acumen. Shri Chakravarthy has worked on various important projects, including formulation of the company’s Annual Business Plan for Marketing and contributed to production planning which has guided the company’s long term marketing strategy. As the Executive Director, he has contributed to the formulation and implementation of various products and price strategy.

Hoa Phat orders two new blast furnaces from Danieli Corus

Hoa Phat Dung Quat Steel has relied on Danieli Corus for the design and supply of two blast furnaces for the Dung Quat steel complex II.

This new plant will add 5.6 Mtpy of liquid steel to Hoa Phat’s annual production capacity – with 5 Mtpy currently being produced at the Dung Quat steel complex I that was recently completed.

The two, 2500 m³ working-volume blast furnaces will form the heart of the new integrated steel plant – each with a nominal annual hot metal production rate of 2.5-2.8 million tonnes. Both furnaces will be equipped with the Danieli Corus high-conductivity cooling and lining design based on copper-plate coolers and graphite refractories – designated “the indestructible bosh” by some steel producers for its unparalleled campaign length capability.

This contract follows the 2017 order for four 1080 m³ working-volume blast furnaces, all of which are now in operation (the first having been commissioned within 24 months after the contract was signed). The stable and uninterrupted ironmaking operations with these furnaces, as well as the very effective project execution experienced by both parties, have been at the basis for selecting Danieli Corus as the key technology provider for this second phase.

In addition to the blast furnaces, level 2 process automation systems, pulverised-coal injection systems and part of the hot-blast systems are included in the present contract’s scope.

The project will be executed following a schedule equally ambitious as that for the phase one project. Given the excellent partnership developed during that project, Hoa Phat and Danieli Corus are confident that phase two will contribute greatly and quickly to Hoa Phat’s continued rapid growth.

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