SUMMER INTERNSHIP PROJECT REPORT ON

INTERNATIONAL AND DOMESTIC TRADING OF STEEL

submitted in the partial fulfillment of TWO YEARS MBA CURRICULUM Report submitted to :METALS AND MINERALS TRADING CORPORATIONS LIMITED, LODHI ROAD,SCOPE COMPLEX,NEW DELHI-110003

Report submitted by :PAWAN KUMAR MBA(2ND SEMESTER) UNIVERSITY BUSINESS SCHOOL

Under the guidance of:MR. S. C. CHATURVEDI DGM(steedivision),MMTC Ltd

PANJAB UNIVERSITY REGIONAL CENTER LUDHIANA

ACKNOWLEDGEMENT

I feel proud and pleased to express my gratitude to everyone who has contributed to the successful completion of this project.

I express my deep gratitude to MMTC Ltd, for giving me the opportunity to carry out a project which enabled me to gain knowledge and learning that would be an invaluable asset for ever.

I thank my guide Mr.S.C. Chaturvedi,DGM steel Division, MMTC, for his able guidance and constructive support.

I would also like to thank Mr.S. Bhaskar DGM TRG,for giving me the opportunity to learn in the organization.

I would like to thank all the people who were directly or indirectly involved in making this project a success.

PAWAN KUMAR

CONTENTSCHAPTER1

TITLEINTRODUCTION OF MMTCCORPORATE MISSION,OBJECTIVE CORPORATE PROFILE RECENT ACTIVITIES OF MMTC

PAGE NO1-92 3-6 7-9

2 3

GLOSSARY OF TERMS PRODUCT ANALYSISSTEEL, PIG IRON HOT ROLLED,COLD ROLLED PRODUCTS ELECTRICAL STEEL

10-22 23-5724 24-43 44-57

4 5 6

PRODUCTION OF STEELWORLD STEEL PRODUCTION STEEL PRODUCTION IN INDIA

58-7659-67 68-76 77-82 78-81 82

PRICE ANALYSISWORLD STEEL PRICES INDIAN STEEL PRICES

TRADING OF STEELCONSUMPTION AND DEMAND DEMAND SUPPLY SCENARIO DUTY STRUCTURE IMPORT EXPORT OF STEEL TRADING PROCEDURE OF STEEL

83-11983-87 88-90 90-91 91-96 97-119

BIBLIOGRAPHY

INTRODUCTION OF MMTC LIMITED

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CORPORATE MISSIONAs the largest trading company of India and a major trading company of Asia, MMTC aims at improving its position further by achieving sustainable and viable growth rate through excellence in all its activities, generating optimum profits through total satisfaction of shareholders. Customers, suppliers, employees and society.

CORPORATE OBJECTIVESTo be a leading International trading House in India operating in the competitive global trading environment, with focus on bulk as core competency and to improve returns on capital employed. To retain the position of single largest trader in the country for product lines like minerals, metals and precious metals. To render high quality of service to all categories of customers with professionalism and efficiency. To provide support services to the medium and small scale sectors. To streamline system within the Company for settlement of commercial disputes. To promote development of Trade related infrastructure.

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CORPORATE PROFILEINDIA'S LARGEST TRADING GIANT Established in 1963, MMTC, one of the two highest foreign exchange earner for india, is a leading international trading company with a turnover of over US$ 5 billion. It is the largest international trading company of India and the first Public Sector Enterprise to be accorded the status of "FIVE STAR EXPORT HOUSE" by Govt Of India for long standing contribution to exports. MMTC is the largest non-oil importer in India. MMTC's diverse trade activities encompass Third Country Trade, Joint Ventures, Link Deals - all modern day tools of international trading. Its vast international trade network, which includes a wholly owned international subsidiary in Singapore, spans almost in all countries in Asia, Europe, Africa, Oceania and Americas, giving MMTC a global market coverage. INDIA'S LEADING EXPORTER OF MINERALS MMTC is major global player in the minerals trade and is the single largest exporter of minerals from India. With its comprehensive infrastructural expertise to handle minerals, the company provides full logistic support from procurement, quality control to guaranteed timely deliveries of minerals from different ports, through a wide network of regional and port offices in India, as well as international subsidiary. MMTC has won the top export award from Chemicals and Allied Products Export Promotion Council (CAPEXIL) as the largest exporter of minerals from India for the seventeenth year in a row. ONE OF THE WORLD'S LARGEST BUYER OF FERTILIZERS As a leading player in fertilizers and fertilizer raw material, MMTC has become a major fertilizer marketing company in India, through planned forward integration of its import activities with the direct marketing of Urea, DAP, MOP, Sulphur, Rock Phosphate, SSP and other farming and agricultural inputs. THE SINGLE LARGEST BULLION TRADER IN THE INDIAN SUBCONTINENT MMTC is the largest importer of gold and silver in the Indian sub continent, handling about 100 MT of gold and 500 MT of silver annually. MMTC has opened a retail jewellery showroom at Maker Bhawan in Mumbai. MMTC supplies branded hallmarked gold and studded jewellery. MMTC has also opened a DUTY FREE jewellery store in the Departure Lounge at Sahar International Airport, Mumbai, India. An assay and hallmarking unit has been set up at New Delhi for testing the purity of gold and gold articles in accordance with the internationally accepted fire assay method.Page | 3

Besides organizing major jewellery exhibitions abroad, exclusively, MMTC is keen to set up manufacturing & joint ventures for modern jewellery in association with leading names in the international jewellery trade as well as marketing.

MMTC's retailing network extends from a jewellery showroom at Maker Bhawan, 4 duty free shops at Mumbai (2), Chennai (1), Thiruvananthapuram (1), International airports and sales counter at its Jhandewalan office in New Delhi. THE BIGGEST IMPORTER OF NON FERROUS METALS & INDUSTRIAL RAW MATERIAL TO INDIA MMTC is India's largest seller of imported non-ferrous metals viz. copper, aluminium, zinc, lead, tin and nickel. It also sells imported minor metals like magnesium, antimony, silicon and mercury, as also industrial raw materials like asbestos and also steel and its products. MMTC imports quality products conforming to international specifications like ASTM or BSS or LME approved brands. Major institutional customers of MMTC in India are accredited with ISO-9002 status. MMTC sources its metals from empanelled suppliers including producers and traders throughout the world. MMTC is a proud winner of gold trophy for exports of Engineering and Metallurgial product in non-SSI Sector and also awarded the All India Trophy for highest export in the category of prime metal by EEPC. GROWING INTEREST IN AGRO PRODUCTS WORLDWIDE MMTC is amongst the leading Indian exporters and importers of agro products. The company's bulk exports include commodities such as rice, wheat, wheat flour, soyameal, pulses, sugar, processed foods and plantation products like tea, coffee, jute etc. MMTC also undertakes extensive operations in oilseed extraction, from the procurement of seeds to the production of de-oiled cakes for export, as well as the production of edible oil for domestic consumption. It also imports edible oils. MMTC has won the gold trophy from FIEO for highest exports in agritulcture & plantation product in non-SSI Sector.

GENERAL TRADING MMTC also handles items like textiles, Mulberry raw silk, building materials, marine products, chemicals, drugs and pharmaceuticals, processed foods, hydro carbons, coal and coke.Page | 4

Its comprehensive infrastructure for bulk cargo handling, with well developed arrangements for rail and road transportation, warehousing, port and shipping, operations, gives MMTC complete control over trade logistics, both for exports and imports. The company's countrywide domestic network is spread over 75 regional, sub-regional, port and field offices, warehouses and procurement centres. MMTC's progress in the recent past has taken it from monopoly status to a competitive open market player making a strong thrust towards broad basing its sphere of activities, while consolidating its core areas of business. To create synergy between its manufacturing, trading and technology partners and to bring optimum efficiency and expertise to its operations worldwide, MMTC has promoted along with government of Orissa, a million tonnes capacity Iron & Steel plant and a 0.8 million tonne capacity Coke Oven battery with by product recovery plant and a captive power plant of 55 MW capacity.

SUPPORT SERVICES MMTC lays emphasis on human resources development and related activities. Several training programmes are conducted to upgrade managerial skills in the latest developments in trade management, export marketing, general management. COMPUTERIZATION MMTC has a Systems & ERP Division comprising a highly professional team to cope with the highly competitive environment. MMTC's operational offices are all equipped with modern computing tools. ERP has been implemented. A user friendly intranet based Knowledge Management Solution has been made available to officials. SOCIAL AND WELFARE ACTIVITIES MMTC's social and welfare activities promote welfare of the employees through various schemes like sports activities, liberal loan facilities like house building advance, conveyance loan, house hold loan, marriage advance, etc. MMTC also provides subsidized canteen facilities, medical treatment, residential accommodation in some of the major cities for its employees. MMTC also takes care of employees' families through merit scholarship, tuition fee reimbursement, etc. MMTC is committed towards environmental upkeepment through aforestation in the mining areas, development of tribal areas and infrastructure development through rail links, port facilities, etc.

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NETWORK OF OFFICES Its vast international trade network, includes. One wholly owned international subsidiary in Singapore- MMTC Transnational Pte. Ltd. (MTPL) 13 Regional offices East Zone : West Zone : North Zone : South Zone : Kolkata, Bhubaneshwar Mumbai, Goa, Ahmedabad Delhi, Jhandewalan (Delhi), Jaipur Bangalore, Bellary, Chennai, Hyderabad, Vizag

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COMPANYS RECENT PERFORMANCE/ACTIVITIESThe highlights of companys earnings during 2006-07,2007-08 is as below:(RS. IN MILLION)2007-08 EXPORTS IMPORTS DOMESTIC OTHER TRADE EARNINGS NET SALES/TRADING EARNINGS TRADING PROFITS PROFIT BEFORE TAX PROFIT AFTER TAX RESERVES AND SURPLUS 39,114 204,499 20,621 796 265,030 4297 3,346 2,005 9800 2006-07 34,131 186,074 12,811 455 233,461 2,497 1,893 1,268 8321

SUBSIDIARY COMPANY The wholly owned subsidiary of Company - MMTC Transnational Pte. Ltd. Singapore (MTPL) was incorporated in October 1994 under the laws of Singapore with a share capital of USD 1 million. During the year 2007-08, MTPL achieved its highest ever business turnover of USD 557 million as against USD 545 million achieved last year. MTPL generated a Profit before tax of Rs. USD 2.12 million and profit after tax of USD 1.95 million during 2007-08, registering growth of 28% over previous year. The net worth of MTPL stood at USD 9.14 million as on 31st March 2008. MTPL has so far paid total dividends exceeding the capital contributed by your company in the wholly owned subsidiary besides multiplying its net worth by nine times since itsPage | 7

inception. MTPL continues to enjoy prestigious "Global Trader" (GT) status awarded to it by International Enterprise Singapore since FY 2000. Pursuant to the provisions of Section 212 of the Companies Act, 1956, the audited financial statements of MTPL together with Director's Report & Auditor's report are attached herewith.

MMTC'S PROMOTED PROJECT-Neelachal Ispat Nigam Ltd. (NINL)The company had set up Neelachal Ispat Nigam Limited (NINL) - an iron & steel plant of 1.1 million tones capacity, 0.8 million tonne coke ovens and by product unit with captive power plant, jointly with Govt. of Orissa with total capital expenditure of nearly Rs. 2000 crores. The project has firm Iron ore supply linkages and also has captive Iron ore mining rights for reserves estimated at about 150 million tons.

Future Projects/ Joint VenturesAiming at diversification and with a view to add value to its existing trading operations, Company has undertaken various strategic initiatives following public- private partnership route, effectively integrating vertically, both backwards and forwards, to encompass the entire gamut of the product process starting from the stage of manufacture and ending with distribution to the ultimate consumer. These strategic initiatives to enhance companys future sustainability include, in broad terms, setting up of a commodity exchange (for which in principle approval of Forward Market Commission has been received) and joining hands with an international producer as a joint venture partner for setting up a gold /silver medallion manufacturing unit, which would also include a gold refinery as an integral part. For effective marketing of the finished products from this unit, as well as jewellery from other sources, company plans to set up in partnership with a leading Indian company, a chain of retail stores at various cities in India for medallions, jewellery and its homegrown brand of SANCHI silverware. Towards investing in mining infrastructure Company is promoting a joint venture

Company with M/s TATA Steel Ltd. for exploration and development of mines for minerals, ferrous and non-ferrous ores, precious metals, diamonds and coal etc.Page | 8

Company has been allotted a coal mine in Jharkhand having estimated reserves of about 700 million MT, pre-feasibility study of which has already commenced and application for prospecting license submitted to the concerned authorities. In the area of logistics, company has already promoted development of a temporary jetty at Ennore port for loading iron ore. Company has also received government approval for acquiring an equity stake in the consortium, which has undertaken the project for construction of a permanent iron oreloading berth at Ennore to decongest Chennai port. To facilitate promotion of two-way trade, MMTC is progressing satisfactorily on setting up of free trade and warehousing zones on lines similar to Special Economic Zones, at Greater Noida, Haldia and Kandla.

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GLOSSARY OF TERMS/DEFINITIONS USED IN STEEL INDUSTRY

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(i) TERMS Iron:

RELATED TO IRON:

Iron is a base metal extracted from iron ore. Pure iron has melting point of 1530 Degree Centigrade and density of 7.86 gm/cc. Iron Making: Iron making is the process of Reduction of iron ore using the relevant reducing agent (Reductant). Hot Metal (Liquid Iron): It is the hot, liquid, metallic iron product obtained upon reduction of iron ore (normally in Blast Furnace or in Corex Furnace). It contains about 93-94% Iron (Fe) and other elements/impurities like Carbon (4%), Silicon Hot metal is the primary input for production of steel in the Integrated Steel Plants. Pig Iron: A product in solid (lumpy) form obtained upon solidification of Hot Metal in Pig Casting Machine. It is called Pig or Pig Iron because of its typical humpy shape. It is produced in 2 broad categories/grades: a) Foundry Grade Pig Iron: Pig iron used in the Foundries for production of Cast Iron (CI) Castings using Cupola Furnace. This is the major use of pig iron. b) Basic/Steel Making Grade Pig Iron: Pig iron (including hot metal) used for production of Steel. Sponge Iron/ Direct Reduced Iron (DRI)/ Hot Briquetted Iron (HBI): Direct Reduced Iron (DRI):Page | 11

Solid metallic iron product obtained upon Direct Reduction of high grade iron ore in solid state itself without being converted into liquid form like that in Blast Furnace. Sponge Iron (SI): DRI is also known as Sponge Iron because of its spongy micro structure. Hot Briquetted Iron (HBI): At times the DRI/SI coming out from the furnace is converted into a bigger compact mass i.e. Briquettes for ease in transportation/charging in steel making furnace, which are known as Hot Briquetted Iron (HBI). SI/ DRI/HBI is produced by reducing high quality iron ore lumps or Iron ore pellets with the help of non-coking coal in Rotary Kiln (in Coal based Plants) or with the help of Natural Gas in Shaft Furnace (known as Gas based plants). SI/ DRI/HBI is primarily used for production of steel (as a substitute of steel melting scrap), in the Electric Furnaces like the Electric Arc Furnace (EAF) or the Induction Furnace (EIF). However, TISCO is using it in their blast furnace as substitute for iron ore or/sinter

(ii) Terms Related To STEEL and 'STEEL PRODUCTS':Steel Steel is an iron based alloy containing Carbon, Silicon, and Manganese etc. Steel making: Steel making is the process of selective oxidation of impurities present in the charge material (Hot metal/Scrap/DRI) in the presence of suitable fluxes in the Steel Melting Shops (SMS). Steel/Steel Products as per Form/shape/size: Liquid Steel: The immediate hot molten steel product from Steel Melting Shop (LD Converter/Electric Arc Furnace/Electric Induction Furnace/Energy Optimizing Furnace). It is further cast into ingots/Semis. The by-product from SMS is called SMS slag.

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Ingot Steel (ingots): The primary solid product obtained upon solidification of liquid steel in conventional, vertical, Cast Iron Molds which are intended for rolling into intermediate/semi-finished products after reheating. Ingots are normally very large and heavy weighing several tones (up to 15-20 tones). Pencil Ingots: Small ingots in Kgs produced in mini-steel plants. Semi-Finished Steel Products (Semis): Intermediate solid steel products obtained by Hot rolling/Forging of ingots (in conventional process) or by Continuous casting of liquid steel are known as Semis. These are called so since they are intended for further rolling/forging to produce finished steel products. Various types of semis are as under: Blooms: A Semi-finished product, usually in square (at times in rectangular) section of cross sectional size exceeding 5x5 (125mm X 125mm). In some of the modern mills, the term bloom is used to cover such products of cross sectional size exceeding 8x8. These are inputs for producing Heavy sections and Sheet piling section normally by hot rolling. At times, like in VSP, blooms are used to produce billets by hot rolling in the Billet Mill. Billets: A semi-finished product which are similar to blooms but of smaller cross sectional size (usually less than or 5x5/7x7. These are used as input material for production of Finished Steel long products viz bars & rods, light sections etc. Slabs: A semi-finished Rectangular, wide, semi-finished steel product intended for production of finished Hot Rolled Flat products viz Plates, sheets, Strips etc. They are normally of width 150250mm wherein width is at-least 3 or 4 times of thickness.Page | 13

Thin Slabs: In modern thin slab casting machine, liquid steel is continuously cast into much thinner slabs of 35-50mm directly which are used for production of Finished Hot Rolled Flat products upon heating on-line. Finished Steel: Products obtained upon hot rolling/forging of Semi-finished steel (blooms/billets/slabs). These cover 2 broad categories of products, namely Long Products and Flat Products:

a) Long Products: Finished steel products produced normally by hot rolling/forging of Bloom/billets/pencil ingots into useable shape/sizes. These are normally supplied in straight length/ cut length except Wire rods which are supplied in ir-regularly wound coils. Different types of long products are: Bars & Rods: Long steel products obtained normally by hot rolling/forging of billets/blooms. They include Rounds, Flats (flat bars), Squares, Hexagons, Octagons etc. which find direct use in a wide variety of products in Engg, & Agricultural, House hold, Furniture sector etc. with/without further processing. CTD (Cold-worked Twisted & Deformed)/ TMT (Thermo Mechanically Treated) Bar & Rods: Hot rolled round bars/rods with indentations/ribs normally supplied in straight length or in folded bundles. Used directly in civil construction

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Wire Rod: Hot rolled plain bar/rods (i.e. without indentation) in Coil Form, normally used to produce Steel Wires and at times Steel Bright Bars. Angles, Shapes & Section: Hot rolled Structural Sections obtained by hot rolling of blooms/billets. They include Angles, Channels, Girders, Joist, I Beams, H Beams etc used in civil/mechanical construction. Rails: Hot rolled Rail Sections obtained upon hot rolling of Blooms/Billets. Used in rail ways/tram ways, on which rail/tram moves.

Wires: Wires are produced by cold drawing of wire rod through a die. They are normally supplied in coils. Bright Bars: There are cold drawn/ ground/ Peeled plain bars produced from hot rolled plain bars/wire rods. (Does not fall under the purview of MOS but under D/o IP&P). Flat Products (Flat Rolled Products): Finished steel thin flat products produced from slabs/thin slabs in rolling mills using flat rolls. These are supplied in Hot Rolled (HR), Cold Rolled (CR) or in coated condition depending upon the requirement. Different types of flat products are: Plate: Thick flat finished product of width: +500mm & Thickness: (+) 5mm which are supplied in cut/straight length. Plates are normally produced/supplied in as hot rolled condition with or without specific heat treatments.Page | 15

Sheet: Thin flat finished steel products, Width: +500MM, cut/straight length.

Thickness: (-) 5mm, Supplied in

Supplied in hot rolled /cold rolled/coated condition and accordingly, known as Hot Rolled (HR) Sheets or Cold Rolled (CR) Sheets or Coated Sheets. Strips: Hot/cold/coated Flat rolled products, supplied in regularly wound coils of super

imposed layers. Accordingly, known as HR Strips or CR Strips or Coated Strips. Depending upon width, strips Are sub-classified as wide strip or narrow strip as under: a) Wide Strips : b) Strips of widths 600mm & above. Also known as Coils in India and Wide Coils in Europe etc. Accordingly, the terms HR Coils/Wide Coils or CR Coils/ Wide Coils etc. are commonly used. b) Narrow Strips: Strips of widths less than 600mm. Hot Rolled (HR) flat products are produced by re-rolling of slabs/thin slabs at high temperature (above 1000 Degree C) in Plate Mills (which produce plates) or in Hot Strip Mills (which produce strips). Hot Rolled Strips are cut into straight length to produce HR Sheets or Thin Plates. Cold Rolled (CR) Strips are produced by cold rolling of HR Strips in Cold Rolling Mills (normally at room temperature). CR Strips are cut to produce CR sheet. CR Strips/sheets are characterized by lower thickness, better/bright finish, closer dimensional tolerance and specific Mechanical/metallurgical properties. They are directly used in automobiles (cars/ scooters, motorcycles etc.), white goods, consumer durable etc. or for production of coated sheet products. Cold Rolled Sheets/Strips are supplied in as rolled condition (CRFH- Cold Rolled Full Hard) or in closed annealed (CRCA Cold Rolled Close Annealed) condition or in closed annealed & skin passed/temper passed condition, depending upon the requirement of the end users.

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Coated Products: There are cold rolled products coated with metals or organic chemicals as under: i) Galvanised Plain/ Corrugated (GP/GC) Sheets: These are Cold Rolled Sheets/Strips coated with zinc metal. Process is known as Galvanising. Used in roofing, paneling etc. GP sheets are normally produced by Hot Deep Galvanising of CR Sheets/Strips in liquid zinc bath. GC sheets are obtained upon corrugating of GP sheets in corrugating machine. Although not practiced in India, GP sheets are also produced by electroplating of zinc on CR sheets/strips when the process is known as Electro-Galvanising. Galvanised sheets are used mainly in roofing, paneling, automobile bodies, Trunks/Boxes etc. ii) Tinplate: TMBP coated with tin metal. Used for manufacture of containers. iii) Tin Free Steel: TMBP sheet/strips coated with chromium metal and chromium oxide. iv) Color coated products: Cold Rolled/ galvanised steel sheets/strips coated with PVC/ plastics or any other organic material. Process known as Color Coating. Used for mfr. of furniture, auto bodies, roofing, paneling etc. V) Terni plate: Cold rolled steel sheets/strips coated with an alloy of tin and lead, used in manufacture of Petrol Tanks for automobiles. Not produced in India. Galfan alloy coated sheets: These are CR Sheets/Strips coated with a Zinc- Aluminum alloy comprising of 95% zinc and 5% aluminum. Uses are similar to GP/GC sheets but it has better life and better corrosion properties. Galvalume alloy coated sheets: These are CR Sheets/ Strips coated with an alloy comprising of approx. 55% aluminum and approx. 45% zinc with nominal amount of silicon. Uses are similar to that of GP/GC sheets but it has better life and much better high temperature performance.Page | 17

Crude Steel: The term is internationally used to mean the 1st solid steel product upon solidification of liquid steel. In other words, it includes Ingots (in conventional mills) and Semis (in modern mills with continuous casting facility). According to International Iron & Steel Institute (IISI), for statistical Purpose, crude steel also includes liquid steel which goes into production of steel castings. Saleable Steel: The term is used to designate various types of solid steel products, which are Sold to outside customers for further processing or for direct use/consumption. Therefore, it includes ingots and/or semis and/or finished steel products. (Liquid steel is normally not traded).

Steel as per Composition:1. Alloy Steel: Steel which is produced with intended amount of one or more alloying elements in specified proportions to impart specific physical, mechanical, metallurgical and electrical properties. Common alloying elements are manganese, silicon, nickel, lead, copper, chromium, tungsten, molybdenum, niobium, vanadium etc. Some of the common examples of alloy steels are: (a) Stainless Steel: which essentially contains chromium (normally more than 10.5% with/without nickel or other alloying elements. As the name implies, stainless Steel resist staining/corrosion and maintains strength at high temperatures. Used widely in Utensils, architectures and in Industrial applications viz automotive & food processing products as well as medical & health equipment. Commonly used grades of stainless steels (SS) are: Type 304: Chrome Nickel Austenitic S S accounting for more than half of SS produced in the world. 18:8 SS used for utensils are the most common example.Page | 18

Type 316: Chrome Nickel (Austenitic) SS containing 2-3% Molybdenum , intended for specific industrial use. Type 410: Plain Chromium (Martensitic) S S with exeptional strength. It is a low cost, heat treatable grade suitable for non-corrosive applications. Type 430: Plain Chrome (Ferritic) S S, offering general purpose corrosion resistance, often in decorative applications. Type 201/202 etc.: Low Nickel Austenitic S S containing 2-5% Nickel. Used as cheaper substitute of Type 304 grade for production of utensils. (b) Silicon-Electrical steel: which usually contains 0.6 6% silicon and exhibit certain magnetic properties, which make it suitable for use in transformers, power generators, and electric motors. They are normally supplied in 2 categories: i) CRGO: Cold Rolled Grain Oriented Silicon-electrical steel sheets/strips, normally recommended for use in transformers and generators. ii) CRNO/CRNGO: Cold Rolled Non-Grain Oriented Silicon-electrical steel sheets/strips, normally recommended for use in rotating machines such as electric motors. (c) High Speed Steel: Alloy steel containing tungsten, vanadium, chromium, cobalt and other metals. Depending upon composition, they are classified as Cobalt Grade abd Non-Cobalt Grade. Used for manufacture of cutting tools. 2. Non-alloy /Carbon Steel/Plain carbon /Un-alloyed Steel: These steels by definition do not contain any alloying element in specified proportions (i.e. beyond those normally present in commercially produced steel in industry). Non- alloy steel is divided into 3 categories namely (i) Low carbon steel or Mild steel (normally containing up to 0.3% carbon (ii) Medium carbon steel (normally containing 0.3 0.6% carbon) and (iii) High carbon steel (normally containing more than 0.6% carbon). Non-alloy steel constitutes approx. 90% of total steel production, of which,Page | 19

Mild steel takes the lions share.

3. Special Steel: Steel, in production of which special care has to be taken so as to attain the special/desired properties, such as, cleanliness, surface qualities and mechanical/ metallurgical properties. In laymans language, all steel other than mild steel fall under the category of special steel. But metallurgic ally, even mild steel/low carbon steel i.e. containing less than 0.25%/0.30% carbon, may still fall under the category of special steel if any special properties is specified in the steel. Examples are DD / EDD steel, Forging Quality steel, Free cutting steel etc. Classifications of Steel based on end use: In terms of uses, steels are often classified as Structural steels, Construction steel, Deep Drawing Steel, Forging quality, Rail steel and the like. (vi) MISCELLANEOUS TERMS: Fluxes: Limestone, Dolomite, etc. used in Iron/ Steel making which react with the undesirable gangue material/ impurities and removed ash slag. Master alloys used for de-gassing/ de-oxidizing/alloying in steel making. Common varieties are Ferro silicon, Ferro manganese, silicon manganese, Ferro chrome, Ferro nickel etc. Refractories: Heat resistant bricks/ shapes/ monolithic mass used for construction/ lining of reaction vessels/ furnaces. Common varieties are Silica, Magnesite, Dolomite, Alumina, Fire-clay, Mag-carbon, Mag-chrome etc. Steel Melting Scrap: Steel waste/scrap not usable as such in its existing form which is further re-melted to produce liquid steel to produce various products. Depending on their form/type, they are classified as Heavy Melting Scrap, Light Melting Scrap, and Turnings/borings etc.Page | 20

Re-rollable Scrap: Seconds & defective products, Cuttings/end cuttings, Used steel products like used rails etc which could be directly used for rerolling (without resorting to re-melting) into finished products for specified applications. These are substitutes of steel billets /pencil ingots. Ship breaking generates substantial quantity of re-rollable steel scrap. Integrated Steel Plants: Steel plants using iron ore as the basic raw material for production of crude steel which is further rolled into finished shapes in-house. Conventionally, these plants have captive coke ovens also and the sensible heat of the outgoing gases from iron/coke making is utilized as fuel for various applications. It therefore, includes units with in-house coke making (optional), iron making followed by production of liquid steel & crude steel and finished Steel. So all ISPs adopting BF- BOF route and Major producers adopting Corex-BOF or DRIAfro MBF-EOF technology would technically, fall under this category.

Mini Steel Plants: Conventionally, EAF/IF based steel plants with/ without captive rolling mills was covered under this category. However, now all steel plants (based on any technology) of capacity up to 5 lakh tpa are covered under this category. Primary Steel Producers: Steel (crude and/or finished steel) producers using iron ore as the basic raw material/input. It therefore, includes in-house iron making followed by production of liquid steel & crude steel With/without in-house rolling. So all ISPs adopting BF- BOF route and Major producers adopting Corex - BOF or DRI-EAF or MBF-EOF technology would fall under this category. Hot Rolling: Rolling of Steel at above the recrystallization temperature of steel (normally above 1000 C) to produce Hot Rolled Long products/Flat Products from semis. Ingots are also hotPage | 21

rolled to get semis. At times blooms are also hot rolled to produce Billets. Rolling Mills used for hot rolling are known as Hot Rolling Mills. Cold Rolling: Rolling of steel (normally flat products) below the recrystallization temperature of steel (normally at Room Temperature) to produce cold rolled sheets /strips /coils. Mills used for the purpose are called Cold Rolling Mills. 2Hi/4 Hi/6 Hi/20 Hi Mills: Rolling Mills are classified as 2-High / 2 Hi, 4 Hi and so on depending on Number of Rolls used in the arrangement/configuration of rolls in single stand. For example, a 2 Hi mill consist of 2 rolls one above the other known as Upper roll and the Lower Roll. In a 4 Hi mill, there are 4 rolls in a stand2 upper rolls one above the other and 2 lower rolls one above the other.

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PRODUCT ANALYSIS

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STEELSteel is an alloy consisting mostly of iron, with a carbon content between 0.2% and 2.14% by weight (C: 11010Fe), depending on grade. Carbon is the most cost-effective alloying material for iron, but various other alloying elements are used such as manganese, chromium, vanadium, and tungsten,Carbon and other elements act as a hardening agent, preventing dislocations in the iron atom crystal lattice from sliding past one another. Varying the amount of alloying elements and form of their presence in the steel (solute elements, precipitated phase) controls qualities such as the hardness, ductility, and tensile strength of the resulting steel. Steel with increased carbon content can be made harder and stronger than iron, but is also more brittle. The maximum solubility of carbon in iron (as austenite) is 2.14% by weight, occurring at 1149 C; higher concentrations of carbon or lower temperatures will produce cementite. Alloys with higher carbon content than this are known as cast iron because of their lower melting point and castability. Steel is also to be distinguished from wrought iron containing only a very small amount of other elements, but containing 13% by weight of slag in the form of particles elongated in one direction, giving the iron a characteristic grain. It is more rust-resistant than steel and welds more easily.

PIG IRONPig iron is raw iron, the immediate product of smelting iron ore with coke and lime stone in a blast furnace.pig iron has a very high carbon content, typically 3.5%, which makes it very brittle and not useful directly as a material except for limited applications. Pig iron is a basic input for making iron casting. Which find application in industrial and other sectors of the economy. In advanced countries pig iron is also used as a partial substitute of melting scrap in the change-mix of electric arc furnace. Pig iron is mainly

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classified into two grades basic grade and foundry grade. Basic grade is used for making steel and foundry grade is used for manufacturing iron casting. Pig iron is typically poured directly out of the bottom of the blast furnace through a trough into a ladle car for transfer to the steel plant in liquid form, referred to as hot metal. The hot metal is then charged into a steel-making vessel to produce steel, typically with an electric arc furnace or basic oxygen furnace, by burning off the excess carbon in a controlled fashion and adjusting the alloy composition. Earlier processes for this included the Bessemer process, open hearth furnace, finery forge, and the puddling furnace.SPECIFICATION SILICON% CARBON% MANGNEASE% SULPHUR% PHOSPHOROUS

%MAX

%MAX

% MAX

BASIC GRADE