Steel is an alloy of iron, carbon and other alloying elements
viz.; Manganese, Silicon, Sulphur, Phosphorus, etc. It is a manufactured product
and is defined by the underlying chemistry and physical shape. There are around
3,000 grades in steel depending on the chemistry.In terms of physical dimensions;
steel is categorized into Flat Products and Long products.
Flat products consisting of sheets and plates are used in the automobile, domestic
appliances, ship building, machine building etc.
Long products consisting of rebars, bars, wires are used primarily in the construction
sector. The Steel Long contract underlying products viz. Mild Steel (MS) Ingots
and Billets are semi-finished products that are used to produce finished long products.
MS Ingots and Billets are covered under Bureau of Indian Standards (BIS) code numbers
2830 and 2831.
The Indian steel industry is the third largest producer as per the World Steel Association
data. The Indian steel industry produces around 60% long steel products and 40%
flat products as per market estimates. The Indian steel industry comprise large
“Integrated Steel Plants” who produce steel from the virgin raw materials viz.;
Iron Ore and Coal/Coke and a vast number of mini steel plants that recycle steel
from melting scrap.
The steel industry is decontrolled since January 16, 1992 as regards to pricing
of the products and hence price is determined by market dynamics. The sale, production,
imports and exports are important constituents of market price dynamics.
STEEL PRODUCTION STRUCTURE