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Production and Consumption of Hr Coils / Sheets
in Nineteen Nineties an analysis.
By N. M. Rao
( Mr. N.M. Rao, a Metallurgical Engineer with over 32 ½ years experience in Steel industry, is a Hyderabad based consultant.)HR coils / sheets is an important steel product, often its performance is linked to the performance of the whole steel industry. In India, this product has achieved impressive growth in production, consumption and exports
Hot rolled coils / sheets is an important steel product and has several applications. Important consuming sectors are pipe / tube makers, cold rolling units, Galvanised / coated sheet producers, LPG cylinder manufactures, machinery manufactures, Auto / tractor / cycle units etc. Production and consumption of HR coils / sheets in India has witnessed substantial growth in Nineteen nineties. Production increased from 2.03 million tonnes in 1991-92 (year of decontrol) to 8.75 million tonnes in 2000-01, showing a compounded annual growth rate (CAGR) of 15.8%. The consumption increased from 2.32 million tonnes to 7.62 million tonnes during the period, showing a CAGR of 12.7%. The CAGR in respect of total finished steel during the period was 7.5% in respect of production and 6.5% in respect of consumption. Such a growth became possible due to commissioning of state-of-the-art HR mills by TISCO, ESSAR, JINDALS, ISPAT etc and good growth in many of the consuming sectors like cold rolling units, pipe / tube makers, Galvanised / coated sheet producers, engineering units / machinery manufacturers etc., during the decade. All india production and consumption:
All India production, imports, exports and apparent consumption of HR coils/sheets during Nineteen Nineties is shown in Table-1 (in 000T)
The year to year growth in production and consumption is shown in
figure-1. The lowest growth in production was 5.6%(1998-99), while the highest was about
45% (1995-96). In case of consumption, lowest growth was 3.8% (1997-98), while highest was
32% (1994-95), ignoring 1998-99, when there was a negative growth of 1.7%.
The share of main producers in total production declined from 86-88% in the beginning of the decade to around 50% by the end of the decade.
The share of HR coils / sheets in total finished steel increased from around 14% in 1991-92 to around 30% in 2000-01 in respect of production and from around 16% in 1991-92 to around 27 % in respect of consumption.
While exports were almost negligible in the beginning of the decade, they constituted 10% of production in 1997-98, 12% in 1998-99 and over 19% in 1999-2000 and 2000-01. Imports as percentage of consumption declined from 15 to 20% in the beginning of the decade to 8 to 9% by the end of the decade. India has become a net exporter in this category from 1998-99.
Sector wise consumption:
The sector wise consumption of HR coils / sheets during last few years is shown in Table-2
The above consumption does not include consumption of imported material since accurate information is not available regarding sector wise consumption of imported HR coils /sheets.
The fluctuations in the shares of these sectors in total consumption is shown in Figure-2 (page-14), while average share during the period is shown in Table-3, CAGR of these sectors is also shown in Table-3, while year to year growth of some key sectors is shown in figure-3 (page-16).
It can be seen that as many as five sectors had a CAGR of more than
20%, three sectors between 10 and 20%, three sectors between 5 and 10% and only one sector
below 5%. Pipe/tube makers and cold rolling units together command a share of over 60% in
total consumption of HR coils / sheets.
State And Region Wise Consumption:
The state and region wise consumption of HR coils / sheets during the last few years is shown in Table-4.(in 00T)
Maharashtra, Uttar Pradesh, Punjab and Haryana were always among the top five consuming states. The fifth state was Tamil Nadu in first two years, Gujarat in third year and West Bengal in the last four years. The consumption by these states was 60% or above of all India consumption except in 1998-99, when it was 55%. Share of Northern region varied between 37%. Western regions share varied between 27 and 31%. In the last three years, East has edged out south for the third position. CAGR was highest in eastern region at 21.8%, it was 14% in Northern region, 14.8% in western regions and 10.4% in southern region. Year to year fluctuations in all India market share (%) and growth (%) in respect of regions is shown in figures - 4&5. CAGR for individual states and their share in total consumption in 1994-95 and 2000-01 is shown in table-5.
The region wise shares in the total consumption have more or less
remained steady during the period, except for minor fluctuations. East improved its share
at the expense of mainly south and east. State wise, shares of Andhra Pradesh, Tamil Nadu,
Punjab, Uttar Pradesh and Gujarat declined over the period, while Haryana, West Bengal,
Bihar, Maharashtra, Orissa and Karnataka increased their shares. Other states have more or
less maintained their share over the period. All the states except Tamil Nadu achieved
double digit growth. Highest growth was achieved by eastern region. States in this region
also recorded impressive growth.
Impressive Growth in Production, Consumption:
HR coils / sheets is an important steel product and often the performance of this product is linked to performance of the whole steel industry. In India this product category achieved impressive growth in both production and consumption in Nineteen Nineties and Exports have over taken the imports. This product is currently facing problems due to world wide over supply situation and slow down in several economies. Hope fully, the situation will improve sooner rather than latter.
In India, the consumption is concentrated in only five states and in other states, consumption is limited. Sector wise also, two sectors account for maximum consumption. Steps are needed to improve consumption in other areas; particularly in South and East and also in various consuming sectors, where current consumption is quite low.