Home About Us News Statistics Trade Shows Publications Stockwatch Research Papers



Production and Consumption of Hr Coils / Sheets

in Nineteen Nineties – an analysis.


(April 2002)

By N. M. Rao

( Mr. N.M. Rao, a Metallurgical Engineer with over 32 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)

TABLE-1

Year

Production (P)

Imports
(I)

Exports (E)

Apparent
consumption (P+I-E)
Main procedures 1 Secondary
procedures 1
Total
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01

1743
2103
2339
2719
3106
2959
2819
2911
3944
4393

284
283
286
441
1474
2139
2610
2820
3684
4358

2027
2386
2625
3160
4580
5098
5429
5731
7628
8751

297
480
434
924
688
649
683
423
612
596

5
6
36
97
186
398
557
693
1467
1726

2319
2860
3023
3987
5082
5349
5555
5461
6773
7621

Note: 1 – SAIL & TISCO
        2 – Essar, Jindal, Lloyds, Ispat and others.

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%.
fig1.jpg (19413 bytes)

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

TABLE-2 (in ‘000T)

Sl. Sector
No.
1994-95 95-96 96-97 97-98 98-99 1999-00 2000-01
1. Pipe / tube makers

2. Cold Rolling units

3. Galvanised / coated sheet units

4. Auto/Tractor/Cycle units

5. LPG Cylinder manufacturers

6. Furniture makers

7. Consumer Durables

8. Engineering units

9. Machinery manufacturers

10. Railways

11. Steel / coal / oil / PSUs / P&T / Port / other Govt. Depts.

12. Miscellaneous & others

1275

519

255

60

83

48

25

75

215

30

178

97

1460

1182

355

95

95

42

35

110

266

26

270

168

1682

1221

400

130

97

50

52

182

340

42

325

173

1790

1241

450

139

90

51

52

183

352

40

303

183

1729

1349

400

130

100

42

55

170

435

44

363

221

1812

2001

540

200

151

50

62

230

713

64

276

272

2002

2331

600

219

144

56

67

235

725

61

281

304

Total estimated consumption in above sectors 2860 4114 4694 4874 5038 6371 7025

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.

fig2.jpg (16908 bytes)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.

Table -3

Sl. Sector
No.

CAR (%)

Average Share in
total consumption (%)

1. Pipe / tube makers

2. Cold Rolling units

3. Galvanised / coated sheet units

4.  LPG Cylinder manufacturers

5. Auto/Tractor/Cycle units

6. Consumer durables

7. Engineering units

8.Machinery manufacturers

9. Steel / coal / oil / PSUs / P&T / Port / other govt. depts.

10. Railways

11. Furiture makers

12. Miscellaneous & others

7.8

28.5

15.3

9.6

24.1

17.9

21.0

22.4

7.9

12.5

2.6

21.0

33.6

28.1

8.6

2.2

2.8

1.0

3.4

8.7

5.7

0.9

1.0

4.0

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)

TABLE-4

Sl. No. State / Region 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01
1 Andhra Pradesh 192 245 264 310 316 324 348
2 Karnataka 40 48 73 50 180 184 210
3 Kerala 3 6 7 8 7 8 9
4 Tamil Nadu 250 298 291 358 252 284 310
5 SOUTH 485 597 635 726 755 800 877
6 Assam 8 16 18 14 16 24 37
7 Bihar 80 105 124 120 333 354 422
8 Orissa 70 95 133 120 150 225 259
9 West Bengal 236 285 311 359 445 540 564
10 EAST 394 501 586 613 944 1143 1282
11 Delhi 195 268 294 306 342 368 440
12 Haryana 282 393 493 452 499 671 722
13 Jammu & Kashmir 6 - 7 10 - - -
14 Punjab 370 480 565 568 432 707 732
15 Uttar Pradesh 475 640 656 777 575 818 1017
16 NORTH 1328 1781 2015 2113 1848 2564 2911
17 Gujarat  193 262 337 311 325 297 359
18 Madhya Pradesh 172 245 260 305 318 313 391
19 Maharashtra 480 781 826 788 827 990 1148
20 Rajasthan 11 17 35 18 21 53 57
21 WEST 856 1305 1458 1422 1491 1653 1955
22 ALL INDIA 3063 4184 4694 4874 5038 6160 7025

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 region’s 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.

TABLE-5

Sl.No. STATE Share in total consumption(%) CAGR (%)  during the period
  1994-95 2000-01
       
1 Andhra Pradesh 6.3 5 10.4
2 Karnataka 1.3 3 31.8
3 Kerala 0.1 0.1 20.1
4 Tamil Nadu 8.1 4.4 3.6
SOUTH 15.8 12.5 10.4
5 Assam 0.3 0.5 29.1
6 Bihar 2.6 6 32
7 Orissa 2.3 3.7 24.4
8 West Bengal 7.7 8 15.6
EAST 12.9 18.2 21.8
9 Delhi 6.4 6.3 14.5
10 Haryana 9.2 10.3 17
11 Jammu & Kashmir 0.2 - -
12 Punjab 12.1 10.4 12.1
13 Uttar Pradesh 15.5 14.4 13.5
NORTH 43.4 41.4 14
14 Gujarat 6.3 5.1 11
15 Madhya Pradesh 5.6 5.6 14.7
16 Maharashtra 15.7 16.4 15.7
17 Rajasthan 0.3 0.8 31.5
WEST 27.9 27.9 14.8

 

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.
fig4.jpg (25776 bytes)

fig5.jpg (16771 bytes)

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.

Terms & Conditions Disclaimer Privacy Policy