World history of the Steel Industry

Steel, the most common metal metal in the universe, consists of Fe and changing sums of C. The groundss of Fe and C since antediluvian times, is followed by that of steel.

Ancient Steel and Crucible Steels

The earliest grounds of the production of steel comes from the Indian Subcontinent in 300 BC. Later in the fifth century Chinese prepared Wootz steel, the first crucible steels, and widely exported and traded throughout ancient Europe, China, the Arab universe, and it was popularly known as Damascus steel in the Middle East.

The Cementation Process

The following measure in steel production was the cementation procedure, wherein extremely valued Swedish Fe bars, with low natural dross content, were packed into rock boxes in beds with wood coal in between them and heated in a furnace for a hebdomad. The merchandise was called blister steel. A figure of blister rods were so wrapped into a larger bundle and re-heated and hammer-forged to blend together and even out the C content, ensuing in the concluding merchandise, shear steel. Germany good invested in this procedure and became a major steel exporter in the eighteenth century.

In England, Benjamin Huntsman, perfected the Huntsman ‘s procedure. This find enabled Sheffield, where Mr. Huntsman operated, to develop from a little township into one of Europe ‘s prima industrial metropoliss.

Another signifier of crucible steel was developed in 1837 by the Russian applied scientist, Pavel Anosov. His technique relied less on the slaking procedure of quickly chilling the molten steel when the right crystal construction had formed within. He called his steel bulat. However, the technique remains unknown.

The history of world-wide steel devising activity through the ages can be summed up by the tendency line:

Modern Procedures

The Bessemer procedure, patented in 1855, was the first cheap industrial procedure for the mass-production of steel from liquefied hog Fe. The cardinal rule in the Bessemer procedure is the remotion of drosss from the Fe by oxidization with air being blown through the molten Fe. The oxidization besides raises the temperature of the Fe mass and keeps it molten.

The major parts of Bessemer procedure were:

Decrease in cost of production, labour demands.

Increase in velocity and graduated table of production.

Manufacturers turned to steel

Construction of railwaies, skyscrapers, and big ships took a spring and production of steel merchandises and powerful guns & A ; passenger cars were besides promoted.

However, Bessemer procedure had some restrictions:

The warming clip of 10-20 proceedingss allowed small clip for chemical analysis or accommodation of the debasing elements in the steel.

Bessemer convertors did non take P expeditiously from the liquefied steel ; as low-phosphorus ores became more expensive, transition costs increased.

The procedure merely permitted a limited sum of bit steel to be charged, farther increasing costs, particularly when bit was cheap.

Certain classs of steel were sensitive to the N which was portion of the air blast passing through the steel.

After this, betterments such as the Gilchrist-Thomas procedure, which lined the convertor with a basic stuff to take P, and the Siemens-Martin procedure ( unfastened fireplace procedure ) which complemented the Bessemer procedure, were simply stop spread steps before the following major invention came along.

Such an invention was Basic O steelmaking, developed in 1952. Modern furnaces, utilizing this method, take a charge of Fe of up to 350 dozenss and change over it into steel in less than 40 proceedingss. Blowing O through liquefied hog Fe lowers the C content of the metal and alterations it into low-carbon steel.

Another major procedure used today is the electric discharge furnace method, started in 1907 in United States.

Another good manner is production of steel by straight cut downing the Fe ore pulverization through warming and chemical decrease by natural gas, popularly known as Direct Reduced Iron.

Comparison of the production methods

While DRI is in general a more expensive procedure than cut downing the ore in a blast furnace, there are several factors which can do it economical:

Direct reduced Fe is richer in Fe than hog Fe, 97 % pure Fe as opposed to about 93 % for liquefied hog Fe, and an first-class feedstock for the electric furnaces used by mini Millss, leting them to utilize lower classs of bit for the remainder of the charge.

The direct decrease procedure uses powdered ore, avoiding the sintering procedure otherwise necessary to utilize this ore in a blast furnace.

The direct decrease procedure can utilize natural gas contaminated with inert gases, avoiding the demand to take these gases for other usage.

Supplies of powdered ore and natural natural gas are both available in countries such as Northern Australia, avoiding conveyance costs for the gas.

Steel Industry in India

The roots of the Indian Steel industry in modern times can be traced to the twelvemonth 1874, when a company called Bengal Iron works at Kulti near Asansol in West Bengal produced Fe. One of the most of import landmarks in the history of Indian steel industry was the beginning of the Tata Iron and Steel Company at Jamshedpur in the province of Bihar, now Jharkhand, in 1907.The other outstanding steel makers before independency were Indian Iron and Steel Company ( 1922 ) , Mysore Iron and Steel Works ( 1923 ) and Steel Corporation of Bengal ( 1937 ) .

After independency, to get the better of the hinderance of high cost of developing engineering in steel sector, the authorities decided to travel in for synergisms with other states for transportation of engineering. Some of the outstanding steel works set up so was in Rourkela in coaction with West Germany and in Bokaro in coaction with Russia. They were under the horizon of public sector endeavors, using both skilled and unskilled labor. Regulation by the authorities market forces, disused engineering, capacity ordinance, monetary value ordinance and lacked client orientation resulted in low productiveness compared to international criterions. The private participants were in downstream production, which was chiefly bring forthing finished steel utilizing rough steel merchandises, boulder clay 1990s.

However, after liberalisation in 1990s-a big figure of controls were abolished, like some instantly and others gradually-the steel industry has been sing new epoch of development. Major developments that occurred at the clip of liberalisation and henceforth were:

Large works capacities that were reserved for public sector were removed ;

Export limitations were eliminated ;

Import duties were reduced from 100 per centum to 5 per centum ;

Decontrol of domestic steel monetary values ;

Foreign investing was encouraged, and the steel industry was portion of the high precedence industries for foreign investings and connoting automatic blessing for foreign equity engagement up to 100 per centum ; and

System of cargo ceiling was introduced in topographic point of cargo equalisation strategy.

As a consequence, the domestic steel industry has since so, become market orientated and integrated with the planetary steel industry. Development of private sector has caused high growing in all facets of steel industry that is capacity, production, export and imports. Besides, the steel industry is having important foreign investings such as POSCO-South Korean steel producer-and Arcelor-Mittal Group-UK/Europe based steel producer-announcing programs for set uping about 12 million metric tons ( meitnerium ) production units each in India. The Indian steel industry, with a production of about 1 meitneriums at the clip of independency, has come long manner to make the production of about 57 meitneriums in 2006-07.

Value Chain Analysis

Inbound Logisticss:

It involves having and repositing of natural stuffs from the providers, and their distribution to fabricating units as per the demand. The chief natural stuffs in production of steel are Coke and Iron Ore. Raw stuff costs forms approximately approximately 62 % of the entire cost of production. The other major concern would be monetary value of the stuffs.


As it suggests it consists of the procedures of transforming inputs into finished merchandises and services. Blast Oxygen Furnace ( BOF ) method and Electric Air Furnace ( EAF ) are the two major paths of production in modern times. The former one histories for about 57 % of entire production, suited for volume production, but the cost of production is high. On the other manus, EAF is quickly gaining popularity and uses sponge iron/scrap and coke to bring forth steel. It provides the range of bring forthing different classs of steel, but is constrained by power and bit supply restraints in India. COREX, an approaching smelting engineering, does non necessitate coke in bring forthing steel. It has a better chance in Indian steel big leagues. The steel industry is an energy intensive industry with power and fuel contributing every bit much as 10.1 % of entire production costs.

Outbound Logisticss:

It focuses on warehousing and distribution of finished goods. Indian steel participant follow multi-national distribution scheme. Apart from exporting steel to foreign companies, they have expanded and acquired steel workss in other states through concern ventures every bit good as staying by authorities policies. Today, Indian steel industry has a planetary presence and it really good caters the demands of clients across the Earth. The steel market has been amazed by the sub-prime mortgage loan state of affairs and the diminution in the domestic car industry.

Marketing & A ; Gross saless:

Though this industry being an industrial goods one does n’t include or affect much of selling and sale, the current selling pitch is environmental friendliness and worker safety while keeping competitory monetary values. Expanding in the little towns, set uping lasting contact with the local selling officers are the schemes being used by large participants to set across their message and make out to consumers on the grass root degree.


Steel Industry offers several services to its clients. In the domestic markets the clients normally relocate around Steel workss as the transit costs involved are excessively high. Customers making this achieve significant decreases in cost and can work with companies to sync production agendas and usage JIT.

For case, Tisco has significantly reduced its costs by implementing the Entire Operating Performance ( TOP ) construct across all procedures. Tisco plans to accomplish extra cost nest eggs in the countries of strategic sourcing, inbound and outbound logistics, manpower and administrative costs.