The steel industry has been headlining the news recently. India is currently the world's 2nd largest producer of crude steel, with an annual output of 10.14 MnT. According to the Steel India Report – IBEF, the production of crude steel and finished steel in FY22, stood at 133.596 MnT and 120.01 MnT, respectively.
According to the World Steel Association, crude steel production in India, rose over 6 percent year-onyear to 10 MnT in the middle of 2022. Presently India is the only country which has registered positive growth in its steel output for the year. The country had produced 9.4 MnT of crude steel during the same month last year. Other steel manufacturing countries such as China, the US, South Korea, Turkey, Iran etc. saw a dip in growth compared to their production of the previous year. Russia having been engaged in a conflict with Ukraine is estimated to have produced 5 MnT, down 22.2 percent over 6.4 MnT a year ago. Russia has registered the highest fall among the top 10 steel producing countries.
Demand for steel from different sectors remains to be the driving factor for this industry. Consumption of steel by India’s infrastructure segment is expected to increase to 11 percent by FY26. Demand from the automotive sector is expected to increase due to rise in the demand for automobiles.
Majority of steel exports are executed from the East Coast of India, due to its proximity to the steel mills in that region.
J M Baxi group as a front-runner in the shipping industry has contributed remarkably to the steel sector. This is especially so, from one of the company’s terminals in the East coast – Paradip in Odisha. Paradip Clean Cargo Multipurpose Terminal continues to handle steel exports for steel majors TATA Steel, JSPL, SAIL and Bhushan Steel - all within close proximity. The fast turnaround time and overall terminal efficiency has boded well for the terminal and still attracts clients to export their steel from here. To augment customer benefits, the marine services vertical of the group undertakes the agency and stevedoring activities at various ports in India where steel is being handled.
J M Baxi’s expertise in handling steel commodities is well acknowledged and accepted by customers, especially those who place a premium on safety with respect to manpower and cargo handling equipment.
The annual production of steel is anticipated to exceed 300 MnT over the next 10 years, with crude steel production projected to reach 85% capacity utilisation, achieving 230 MnT of finished steel till that period.
The Central Government’s initiative of Atmanirbhar Bharat is evident in the steel sector and J M Baxi group as an entity, promises to support the nation’s growth with its contribution in the maritime port infrastructure and marine services sector.
