Elan InterTrade
Elan InterTrade based out of Mumbai, India is one of the leading start-ups specifically in the international trade / procurement of Iron ore, DRI/HBI, Scrap, Ferro Alloys, Coal,Pig Iron, Bitumen, Medical Equipments etc. We also provide research and representation services for/on behalf of our customers. Our team brings with us more than 20 yrs. of industry experience along with extensive ties to associations like Sponge Iron Manufacturers’ Association (SIMA), FICCI, CII,ASSOCHAM,ASPA & Steel Rolling & Pipe Association
India was the world’s second-largest steel producer with production standing at 109.22 million ton in FY2019-20. The growth in the Indian steel sector has been driven by domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India’s manufacturing output. India’s steel production capacity has expanded to 161 million ton in FY2019-20. Continuing growth of Indian steel industry presents ample business opportunities for trade.
Indian Steel Industry update
India was the world’s second-largest steel producer with production standing at 109.22 million ton in FY2019-20. The growth in the Indian steel sector has been driven by domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India’s manufacturing output. India’s steel production capacity has expanded to 161 million ton in FY2019-20.
The Indian steel industry is very modern with state-of-the-art steel mills. It has always strived for continuous modernisation and up-gradation of older plants and higher energy efficiency levels. Indian steel industries are classified into three categories such as major producers, main producers and secondary producers.
Market Size
India’s finished steel consumption grew at a CAGR of 7.5 per cent during FY2007-08 – FY2019-20 to reach 100.07 million ton. India’s crude steel and finished steel production increased to 109.22 million ton and 102.06 million ton in FY2019-20, respectively. Exports and imports of finished steel stood at 8.36 million ton and 6.77 million ton, respectively, in FY2019-20.
Investments
Steel industry and its associated mining and metallurgy sectors have seen a number of major investments and developments in the recent past. According to the data released by Department for Promotion of Industry and Internal Trade (DPIIT), the Indian metallurgical industries attracted Foreign Direct Investments (FDI) to the tune of US$ 11.45 billion in the period April 2000–December 2019.
Some of the major investments in the Indian steel industry are as follows:
- Ministry of Steel plans to invest US$ 70 million in the eastern region of the country through accelerated development of the sector.
- The production capacity of SAIL is expected to increase from 13 MTPA to 50 MTPA in 2025 with total investment of US$ 24.88 billion.
- In December 2019, Arcelor Mittal completed the acquisition of Essar Steel at Rs 42,000 crore (US$ 6.01 billion) and also formed joint venture with Nippon Steel Corporation.
- In February 2020, GFG Alliance acquired Adhunik Metaliks and its arm Zion Steel for Rs 425 crore (US$ 60.81 million), marking its entry into the Indian steel market.
- JSW Steel has planned a US$ 4.14 billion capital expenditure programme to increase its overall steel output capacity from 18 million tonnes to 23 million tonnes by 2020.
- Tata Steel has decided to increase the capacity of its Kalinganagar integrated steel plant from 3 million tonnes to 8 million tonnes at an investment of US$ 3.64 billion.
Government Initiatives
Some of the other recent government initiatives in this sector are as follows:
- Government introduced Steel Scrap Recycling Policy aimed to reduce import.
- An export duty of 30 per cent has been levied on iron ore (lumps and fines with Fe above 58%) to ensure supply to domestic steel industry.
- Government of India’s focus on infrastructure and restarting road projects is aiding the boost in demand for steel. Also, further likely acceleration in rural economy and infrastructure is expected to lead to growth in demand for steel.
- The Union Cabinet, Government of India has approved the National Steel Policy (NSP) 2017, as it seeks to create a globally competitive steel industry in India. NSP 2017 envisages 300 million tonnes (MT) steel-making capacity and 160 kgs per capita steel consumption by 2030-31.
- The Ministry of Steel is facilitating setting up of an industry driven Steel Research and Technology Mission of India (SRTMI) in association with the public and private sector steel companies to spearhead research and development activities in the iron and steel industry at an initial corpus of Rs 200 crore (US$ 30 million).
- The Government of India raised import duty on most steel items twice, each time by 2.5 per cent and imposed measures including anti-dumping and safeguard duties on iron and steel items.
Road ahead
Huge scope for growth is offered by India’s comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors.
References: Media reports, Press releases, Press Information Bureau (PIB), Joint Plant Committee (JPC)
Our Products
Scrap
Elan InterTrade has direct yard sources from Uk/Brazil for importing quality ferrous scraps into India. We are importing around 5000...
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Iron Ore
Elan InterTrade has strong sources for high grade Lumps and Pellets from South Africa and has long relationship and strong...
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Coal
Elan InterTrade is involved in the trade and distribution of RB1 & RB2 coal grades from South Africa to the Indian DRI industry...
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DRI / HBI
Elan InterTrade has strong sources for quality Gas / Coal based DRI / HBI and has long customer relationship in Indian market...
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Pig Iron
Elan InterTrade has sources for both basic & foundry grade pig iron from India and CIS. This iron is used in the manufacture of ductile...
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Bitumen
Elan InterTrade has very strong import sources of bitumen from UAE/Iran and is currently procuring them for Indian businesses...
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Research & Consulting
Elan InterTrade provides business research, consulting and representation services to its reputed business partners. Having a very...
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testimonials
Elan Intertrade has strong and reliable sources for good quality scrap. When we faced few issues they attended promptly and resolved to our satisfaction. We recommend to deal with them for your sourcing needs.
Elan InterTrade team is very professional and experienced, providing detail trends , analysis and guidance to help in our procurement decisions. They have helped us significantly in our raw material procurement.
Elan InterTrade has great expertise in marketing and shipment of Direct Reduced Iron (DRI) and are well connected with the buyers.
Elan InterTrade has excellent relationships with the Indian steel buyers and was instrumental in helping us establish regular Iron ore import market in Goa, India.