Odisha leads among top 7 crude steel-producing Indian states in CY22

• Jharkhand, Chhattisgarh ranked second & third respectively
  
  
• Western region shows highest concentration of EAF-IFs
  
  
• Eastern zone leads in BF-BoF share
  
  

Morning Brief: Odisha led in terms of crude steel production in India with 24.11 million tonnes in calendar year 2022 (CY22), as per data maintained with SteelMint. Jharkhand followed in second place with 17.73 mnt, and Chhattisgarh was third with 15.46 mnt. Karnataka stood at fourth position (13.53 mnt), and Maharashtra (11.79 mnt) at fifth. Gujarat (9.53 mnt) and West Bengal (9.17 mnt) brought up the rear. Together, these seven states contributed 101.32 mnt of the 124.50 mnt of crude steel produced in 2022, with "others" contributing the balance 23.18 mnt.

India's installed capacity is at around 165 mnt.

Data also reveals that region-wise production trends show that the eastern region contributed the highest to the total production last year, at 67.16 mnt, followed by the western region with 22.54 mnt. The southern part of India contributed 25.64 mnt and the northern zone, a much lesser 9.14 mnt.

It was also revealed that the electric arc furnace-induction furnace (EAF-IF) route of steelmaking was concentrated in the western region, which includes Chhattisgarh, with a lion's share of 32.23% with the blast furnace-basic oxygen furnace (BF-BoF) share at a far lower 5.79%.

In the eastern region, on the other hand, the BF-BoF:EAF-IF ratio was skewered towards the former at 34.07% compared to the latter's 17.63%.

Outlook
India's crude steel production capacity is likely to reach 265-270 mnt and actual production would hit 210-215 mnt, as per SteelMint's estimates. This would fall short of the government's policy target of 300 mnt by 2030. In the total capacity by 2030, the estimated share of BF-BoF will likely be at 55% and EAF-IF contribution will touch 45%. The current ratio, however, is a bit inverted with BF-BoF at 45% and EAF-IF share at 45%.

This is essentially because the new capacities coming up are in the BF-BoF mode.

All-India Steel Conclave
The All-India Steel Conclave will be organized in Chhattisgarh since it is one of the key steel-producing states and also houses the highest number of EAF-IF mills.

The conference, to be held over 25-26 March, 2023, will be taking a look at the opportunities and challenges relating to the Ministry of Steel's Vision 2030.

India has already hit the halfway mark of 160 mnt of the targeted installed capacity of 300 mnt by 2030. Where do we move from here in the coming seven years? This premier event will seek to address the key issues in the Indian iron ore, coal and IF-route steel making segments, and also throw some light on the way forward.

The two-day summit will focus on the new opportunities and changing market dynamics of India's EAF/IF-based steel industry and offer great opportunities for two days of knowledge sharing. Steel manufacturers, end-users, iron ore miners, coal traders, and ferro alloy suppliers will gather on one networking platform and strengthen business bonds under a single roof.

Why Chhattisgarh?
Chhattisgarh, richly endowed with minerals, especially iron ore, is the third-largest steel-producing state in India and contributes around 12% of the country's crude steel production. It is home to 10% of India's pellets and 20% of sponge iron production, and thus plays an important role in India's growth story.