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Indian Galvinising Industry

Essay by   •  July 10, 2011  •  Case Study  •  4,097 Words (17 Pages)  •  1,608 Views

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February 2009 16 ××

Analysis

The global steel demand outlook has deteriorated due to

the collapse of stock markets as well as due to the following

reasons : Since July, 2008, global steel output has seen an

lThe sub-prime and related loan crisis is causing accelerating decline dropping by 25 percent by November,

lightening of credit conditions globally. This development 2008. Between January to November, the global crude

threatens consumer durables and fixed assets investment steel production in 2008, declined by 19 percent over the

spending in many countries. same period of 2007.

lReduced automotive sales in many countries. Auto buyers According to global steel experts, the key to the future will

are facing quadruple whammy: high cost to drive a car, a be whether China will avoid a steep recession and will not

lower value for their existing vehicle, reduced disposable flood the global market with exported steel - an unlikely

income to purchase the car because more income is spent scenario as domestic prices in that country are higher than

on buying energy in various forms and food and toughened export prices - and whether mills will maintain their cuts to

credit terms when buying the car. prevent over supply.

lA slowdown in the growth rate of the Chinese economy Indian steel industry has also been affected adversely by

including the real estate construction, automotive and the global downturn. Companies like JSWL, Ispat Industries

appliance sectors. Apparent steel demand in China in and Essar Steel have reduced their production by 20

August, 2008 fell 6.5 percent on a crude steel basis year to percent. Ispat Industries may achieve a production 2.5 mt in

year, with largest setbacks in construction related steel 2008-09 compared to 2.7 mt in the previous year. Ispat's

products. production target in 2008-09 was 3.1 million tons. SAIL

lLower activity in steel-consuming industries in the may also go for a cut back in production. SAIL's October,

United States-WSD's weighted activity index for 15 steel 2008 sales have come down to about 90,000 tons which is

consuming industries in August, 2008 was down 10.7 about 37 percent less than the target for the month. Tata

percent year-to-year. Durable goods orders in August fell Steel has set an internal target of "postponing expenditure"

4.5 percent from the prior month. Non-residential worth Rs. 500 crore by six months.

construction activity in the U.S.-an important prop to steel

demand since 2003 has turned down. Galvanised plain and corrugated steel sheets (GP/GC) are

The Impact of the Global Financial Crisis on World Steel

Production

Galvanised Steel

- Sanjay Sengupta

Indian Galvanised &

Colour Coated

Steel Industry

Introduction

The global stock markets faced a severe downturn during

April-September, 2008 and the deterioration is continuing.

According to World Steel Dynamics (WSD), the precipitous

decline in the global stock markets has adversely affected

confidence in many countries. Between April and

September, 2008, the stock markets all over the world

have collapsed. The drops were : Russia - 42 percent ,

Brazil-39 percent, Egypt -37 percent, China-36 percent,

Malaysia - 29 percent, Thailand - 28 percent, Argentina -

25 percent, Indonesia - 25 percent, Mexico - 22 percent,

Hong Kong-22 percent, Milan - 22 percent, London FTSE -

15 percent, Germany - 14 percent, Canada- 13 percent,

South Africa - 14 percent, Dow Jones (USA) - 14 percent,

Japan - 10 percent and India by 34 percent between March,

17 and October 31,2008.

February 2009 17 ××

It is one of the basic and efficient corrosion resistant

techniques for producing galvanised steel. During the

galvanizing process, steel coils are previously cleaned and

pickled and then dipped into a bath of molten zinc to form a

series of zinc / iron alloys integrated with the steel surface.

As steel is removed from the bath, a layer of relatively pure

zinc is deposited on the top of alloy layers. On

solidification, the zinc assumes a crystalline metal

structure, often called 'Spangling'. The spangles can be

enhanced or reduced depending on the end-use.

The life of galvanising coating in steel structures

permanently immersed in liquids depends on the corrosion

properties of the liquid and the thickness of the galvanised

coating in the structure.

value-added products that are sturdy, light weight, bright

in appearance, corrosion resistant and environment Earlier, hot-dipped steel products

...

...

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