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Editor's Note
Dear Readers,
In the latest edition of the Iron & Steel Review newsletter for March, readers will find an insightful article that delves into the steel industry’s recent developments and trends expected for 2024-25. Alongside this, the newsletter features exclusive excerpts from an interview with Gajendra Panwar, Managing Director & CEO of Danieli India, who shares his expert insights on the future of steel manufacturing.
Additionally, the newsletter reports that NMDC has embarked on a new fiscal year with remarkable success, achieving record sales in the fourth quarter. On a different front, voestalpine Donawitz has recently completed a significant upgrade of its LD converter (BOF) No. 4, following a successful revamp executed by Primetals Technologies. This March newsletter offers a comprehensive look at these developments and more. Santosh Mahanti, Editor & CMD |
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Steel Industry Developments and Trends in 2024-25
In the ongoing financial year (2024-25), India’s finished steel consumption has experienced a Y-o-Y growth of 10.92% during the first ten months (April 2024 to January 2025). Although this growth rate is lower than the over 13% surge seen in FY’23 and FY’24, it still signifies a robust double-digit increase. This decline in growth can largely be attributed to a slowdown in government expenditure, influenced by the General Elections. By the end of the fiscal year, consumption is projected to reach 151 Million Tonnes (MT), maintaining an annual growth rate of approximately 11%. Meanwhile, crude steel production growth has decreased to 5% in the current fiscal year, down from 5.74% in FY’24 and 13.37% in FY’23. This slowdown in production has been linked to a rise in cheap imports and a decline in exports. Additionally, capacity utilisation is projected to fall between 80% and 82% in FY’25, compared to 84.6% in FY’24.
Despite these challenges in both production and consumption, steel companies remain optimistic about the long-term outlook and are looking to expand their capacities. Numerous announcements reflecting this commitment have been made, including collaborations on various research initiatives. The Ministry of Steel has introduced a Green Steel Taxonomy and launched the PLI Scheme 1.1, focusing on speciality steel.
An insightful article by N. M. Rao, Consultant (I&S) from Visakhapatnam, appears in the March issue of Iron & Steel Review, examining the latest developments and trends for 2024-25. |
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Danieli designers work on 5 dimensions; Low CAPEX, Low OPEX, Low Carbon Tax, Life of the plant and Competitive Output from our plants
The following is an edited excerpt from an interview with Gajendra Panwar, MD & CEO of Danieli India, which appears in Iron & Steel Review’s March issue. Having led Danieli’s subsidiaries in India for the past two decades, he offers valuable insights into the company’s commitment to manufacturing high-quality equipment in-house. The interview explores the competitive landscape of the steel industry, comparing the strengths and challenges faced by India and China.
Please let us know about how Danieli is looking at future of steel technologies. How, Danieli is a “Step Ahead”, what are the differentiator?
You would agree that future is all about sustainable technologies. For example, If India has to expand its steel production capacities to 300 MTPA capacity by 2030, it must adopt sustainable technologies. We Indians would prefer technologies which would conserve our precious national resources and minimise environmental impact.
Danieli invests significantly in R&D with Innovation being a fundamental principle of our business. Our R&D focuses on improving the efficiency, sustainability, and competitiveness of our plants.
Danieli designers are demonstrating time and again that being sustainable is possible. Danieli designers work on 5 dimensions; Low CAPEX, Low OPEX, Low Carbon Tax, Life of the plant and Competitive Output from our plants. A competitive & sustainable plant for our customer is the reason, we keep them coming to us for any expansion.
What are your observations on the key market trends currently shaping the Indian steel industry?
I believe everyone in the Indian steel industry shares the opinion that steel production in India must increase. We are still far below the global average in per capita consumption, despite being one of the fastest developing nations.
Our government is also boosting infrastructural spending year on year. Although private capital expenditure for steel plant capacity expansion has slowed off late, due to a drop in steel prices, public sector capex spending remains strong. As a result, domestic
consumption is growing at a steady pace, and new capacities are becoming larger.
When two or three new capacities come into production, they typically add 3-5 MTPA, causing some fluctuations in the demand- supply balance. Geopolitical disturbances such as wars, the Chinese economic slowdown, and US tariffs further accentuate these fluctuations. However, a growth rate of 6-7% CAGR is expected to continue for long time to match the continuously growing domestic demand.
In fact, with the drop in steel prices, a slowdown, and a reduction in interest rates, now is the best time to invest in new capacities. We at Danieli, are highly excited about the growth prospects in India and are continuously boosting our manufacturing capacities in India.
What is your take, are you confident the Indian Steel industry will touch 300 MTPA Production Capacity mark by 2030?
A lot is happening in the Indian Steel Industry and a lot of enabling factors being created by the Government. The Make in India initiatives in Defence sector, ship building sector, renewable energy sector, infrastructural spending in general and specially in logistics and transport sectors are all major boosters for the growth of steel sector.
We, being directly involved in most of the expansion, get to know a lot about the Projects under erection and commissioning, Projects on the ground, Projects in the pipeline, Projects on the drawing board. Whereas the national steel policy 2017 makers have set a target of 300 MTPA crude steel capacity by 2030, we have already by 2024-25 reached to a capacity of 190 MTPA. I think, we would definitely reach this target, perhaps a year or so late, but will not be far behind.
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NMDC Reports Record Q4 Sales
State-owned mining giant NMDC Limited has achieved significant milestones in the fiscal year ending March 2025, producing 44.04 Million Tonnes (MT) and recording sales of 44.4 MT. The company also marked its highest-ever quarterly sales performance in Q4, with sales reaching 12.66 MT.
In March 2025, NMDC’s production stood at 3.55 MT, while sales increased by 6% year-on-year, rising to 4.21 MT from 3.96 MT in March 2024. This steady growth demonstrates NMDC’s resilience despite all challenges.
NMDC reported a production of 13.27 MT in Q4 FY’25. Sales saw a sequential increase of 6% from Q3 FY’25 and a year-on-year improvement, rising from 12.54 MT in Q4 FY’24 to 12.66 MT in Q4 FY’25.
Additionally, NMDC showcased its strategic foresight and commitment to capacity expansion by achieving the highest-ever standalone Capex of Rs. 3,707 Crores.
Commending all employees marking the new beginning to FY’26, Amitava Mukherjee, CMD of NMDC, said, “As we step into the new financial year, India’s iron ore demand continues to rise, driven by lower exports and steady expansion in merchant mining. Despite challenges, NMDC’s strategic planning and sustained efforts enabled us to maintain our top line in FY 2024-25. Entering FY’26 brings us closer to our ambitious goal of reaching 100 MT of production capacity by 2030. We must continue to drive efforts to optimise productivity and streamline operations.” |
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Primetals Technologies Modernises LD Converter (BOF) at voestalpine Donawitz
voestalpine Donawitz has recently started up its LD converter (BOF) No. 4 following a revamp carried out by Primetals Technologies. This new converter has a tapping weight of 67 tonnes.
The previous converter had reached the end of its lifetime, prompting voestalpine to invest in this upgrade. Primetals Technologies was responsible for the engineering and supply of the converter, trunnion ring, suspension system, slag shield, bottom stirring system, and air-cooling system. The scope of work also included providing advisory services for construction work and implementation.
The air-cooling system has significantly reduced the operating temperature of the trunnion ring and the converter shell, resulting in a longer equipment lifetime. This enhanced cooling efficiency lowers the overall maintenance requirements when compared to water-based systems. Another key feature is the Vaicon Link 2.0, a maintenance-free suspension system designed to ensure vessel stability while allowing thermal expansion in all directions.
At the Donawitz location, voestalpine produces about 1.65 million tonnes of high-quality raw steel annually, which is then processed into billets or pre-blocks. Most of these intermediate products are further processed by other group companies, including voestalpine Rail Technology, voestalpine Wire Technology, and voestalpine Tubulars.
Primetals Technologies and the voestalpine group have a long-standing relationship that has developed through numerous projects over the decades. |
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3RD INDIAN STEEL CONFERENCE
September 9-10, 2025
HOTEL BABYLON INTERNATIONAL, RAIPUR
Website: www.isrinfomedia.com |
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