Editor's Note

Dear Readers,

The July newsletter of Iron & Steel Review offers an exclusive interview with Dr. Gerald Wimmer, Vice President of Converter Steelmaking at Primetals Technologies Austria GmbH. In this conversation, Dr. Wimmer shares valuable insights into the evolving landscape of converter steelmaking and the future of steel production. Meanwhile, the outlook for the Indian steel sector is bright, driven by rising domestic and global demand, coupled with strategic capacity expansions. The newsletter includes a concise overview of market trends.

Focusing on the domestic scene, SMEL has reported impressive results for Q1 FY’27, showcasing significant growth across revenue, EBITDA, and overall profitability, thanks to ongoing efficiency improvements. On the global stage, Primetals Technologies has secured a major revamp order for a CSP mill from WISCO, further solidifying its position in the market.

For the latest updates and insights into the steel industry, be sure to check out the July newsletter.

Santosh Mahanti, Editor & CMD

CONTENTS

Transforming Steel Production: Insights from Dr. Gerald Wimmer on Sustainable Practices and Future Trends in Converter Steelmaking

Primetals Technologies’ converter steelmaking division stands out for its comprehensive approach, rooted in a wealth of global project experience.

In the July issue of Iron & Steel Review, readers can find an exclusive interview with Dr. Gerald Wimmer, Vice President of Converter Steelmaking at Primetals Technologies Austria GmbH. In this insightful discussion, Dr. Wimmer shares his vision for the future of steel production and highlights how Primetals Technologies is at the forefront of innovative and sustainable practices in converter steelmaking. Below, we present some key takeaways from the interview.

Thank you for joining us, Dr. Wimmer. Let’s jump right in — what trends do you foresee shaping the future of converter steelmaking? How are technological advancements influencing these trends?

Thank you for having me. From Primetals’ perspective, we identify two key trends. First, global steel production is not growing as much anymore. We are witnessing a saturated market, with some notable exceptions, particularly in developing countries like India, where we still observe significant growth in crude steel production. This leads us to our first trend: in economies that are still developing, there is a clear opportunity and need for new capacities to be installed. New plants can be constructed with state-of-the-art technology, which is much more feasible than upgrading older facilities in mature markets.

That’s an interesting point. What about the second trend you mentioned?

The second prominent trend is the green transition, particularly in relation to CO2 emissions. The iron and steel industry is among the major industrial emitters of CO2, so reducing these emissions is crucial for addressing global climate challenges. It is essential to balance this with the reality that steel itself is a sustainable material needed for modern life and future development. Our challenge — and opportunity — is to produce steel in a greener way. Here, converter steelmaking also plays an important role. For instance, increasing the scrap rate in BOF converters is an easy and effective strategy for reducing CO2 emissions in crude steel production.

The Indian government aims for at least 25% of steel production to be green steel. How is Primetals contributing to this goal?

Primetals is actively engaged in this initiative. Our approach encompasses a broad range of solutions. Initially, we focus on optimising existing integrated routes — there are many steel plants currently in operation and additional ones under construction. By enhancing these existing operations with solutions we have developed, such as SIP (Sequence Impulse Process) and hydrogen injection in blast furnaces, we can significantly reduce CO2 emissions in iron production right now. Raising the scrap rate in BOF converters and improving heat recovery are also effective measures that are ready for implementation.

The next essential step is electrification. The steel industry is highly energy-intensive and traditionally relies on fossil fuels such as coal. Transitioning to electrical energy, particularly CO2-neutral options like green electricity or nuclear power, can lead to substantial reductions in CO2 emissions. The final piece of our strategy focuses on carbon direct avoidance — exploring alternative reduction agents, such as natural gas in the transition phase and future deployment of green hydrogen for direct reduction.

India’s Steel Industry Continues Strong Growth in Q1 FY’27

The Indian steel sector has demonstrated robust growth in the first quarter (Q1) of FY’27, driven by increased production, rising domestic consumption, and ongoing capacity expansion initiatives. 

During Q1 FY’27, crude steel production reached 42.06 Million Tonnes (MT), marking a 3.0% increase compared to the same period last year. Similarly, finished steel production rose to 40.99 MT, reflecting a notable 5.9% growth year-on-year. The demand for finished steel also surged, with consumption reaching 41.57 MT, a rise of 8.3% from the year-ago period.

In a positive trend for trade, June 2026 saw India’s steel exports climb to 0.62 MT, up from 0.51 MT in May 2026. However, imports of finished steel also increased slightly to 0.70 MT in June, up from 0.69 MT in the previous month. During the April-June 2026 period, India has emerged as a net importer of steel, with imports exceeding exports by 0.47 MT.

SMEL Delivers Consistent Growth with Strong Q1 FY’27 Results

Shyam Metalics & Energy Limited (SMEL) reported a strong performance in the first quarter of FY’27, driven by higher realisations, an improving product mix, and growing contributions from its value-added businesses. While brokerages differed on valuation, all recognised the company’s expansion pipeline, downstream integration, and improving earnings profile as key growth drivers.

The company reported revenue of Rs. 5,455 Crores during Q1 FY’27, reflecting a 23.3% YoY and 4.1% QoQ increase. EBITDA rose 28.3% YoY and 7.4% QoQ to Rs. 812 Crores, with the EBITDA margin improving 60 bps YoY to 14.9%. Operating EBITDA grew 32.0% YoY and 5.3% QoQ to Rs. 765 Crores, while the operating EBITDA margin improved 90 bps YoY to 14.0%. Profit After Tax (PAT) increased 20.6% YoY and 12.6% QoQ to Rs. 351 Crores, with PAT margin at 6.4%, supported by improved operational efficiency and a stronger product mix.

During the quarter, SMEL unveiled its Vision 2031 roadmap, outlining its strategy to transform the company into a diversified, value-added metals enterprise. The company also commenced commercial production at its Odisha aluminium foil facility, while its aluminium flat-rolled products facility remains on track for commissioning in Q2 FY’27. Backed by a strong balance sheet, prudent capital allocation, and a well-defined growth pipeline, SMEL remains focused on strengthening earnings quality, profitability, and capital efficiency while creating sustainable long-term value for its stakeholders.

Brij Bhushan Agarwal, Chairman & Managing Director, SMEL, said, “We commenced Q1 FY’27 on a strong footing, driven by disciplined execution, operational excellence and the strength of our integrated business model. The quarter recorded healthy growth across revenue, EBITDA and profitability, supported by sustained efficiency improvements. The launch of our Vision 2031 roadmap marks an important milestone in Shyam Metalics’ journey towards becoming a diversified, value-added metals enterprise.”

Primetals Technologies to Modernise WISCO’s CSP Mill in China

Wuhan Iron and Steel Co., Ltd. (WISCO), one of the major steel producers in China and part of Baowu Iron & Steel Group, the world's largest steelmaker, has awarded Primetals Technologies a contract to restructure its CSP casting and rolling line. The project will transform the existing line into a state-of-the-art, 4.2 MTPY conventional Hot-Strip Mill (HSM).

Commissioned in 2008, the original plant was designed as a first-generation thin-slab casting and rolling line featuring vertical casters, tunnel furnaces, and a 7-stand finishing mill. To address the productivity and product mix limitations of this concept, WISCO has opted to convert the facility into a conventional HSM while retaining selected existing equipment. The project will be executed by Primetals Technologies, the principal technology partner, within a 21-month timeframe.

The project marks the second successful conversion of a CSP plant into a conventional HSM by Primetals Technologies. It follows the completion of a similar project at thyssenkrupp Steel’s Bruckhausen facility in Duisburg, Germany, in 2025.

The new WISCO HSM will be fed by new conventional casters producing 230 mm slabs and reheated by two new walking beam (WB) furnaces. It will feature a new, high-capacity single-stand reversing roughing mill with a heavy rolling force and two sets of heavy edgers to achieve heavy edging reductions required for the new product mix. New crop shear and descaling units will also be installed between the roughing and finishing mill. The finishing mill, laminar cooling section, and downcoiler will be upgraded to support the expanded product range and high-end product quality requirements.

The target product mix includes AHSS, high-carbon, microalloyed steels for pipe applications and silicon steels. With a targeted plant production capacity of 4.2 MTPY, the project is expected to double the capacity of the existing plant.

Primetals Technologies will be responsible for engineering the main new equipment for the mill line, supplying key technological components, and delivering the complete Level 1 and Level 2 automation architecture for the full line. The automation package will incorporate advanced process control models to optimise productivity and quality.

The automation solution also includes the Ski Expert ski detection and higher productivity, Wedge and Camber Expert for detecting and correcting strip geometry deviations, and the Asset Life Expert (ALEX) condition monitoring system to support high availability of the HSM.

The modernisation represents a significant milestone in upgrading ageing hot-strip mills in China, enabling steel producers to meet new quality and productivity targets in a highly competitive steel market. For WISCO, the project will improve its hot-strip rolling line layout and enhance its high-end manufacturing capabilities. It also marks a significant milestone for both companies as they advance high-quality development in promoting China's high-end steel manufacturing to a higher level.

Upcoming Events