India

In line with India’s commitment at the COP26 summit in Glasgow last year, the country aims to reach net-zero by 2070.

Furthermore, India seeks to meet 50% of its energy needs by 2030 through renewable sources and expand non-fossil fuel power generation capacity to 500 GW in this decade.

In light of these targets, the Government of India (GoI) has approved a multibillion dollar plan of setting up transmission projects for power supply from these renewable energy projects.

We’re offering timely emails with exclusive analyst commentary and some best practice advice. Sign up here.

Setting up ‘green energy corridors’

renewables

ipopba/Adobe Stock

India is setting up “green energy corridors” in two phases.

“The Green Energy Corridor Project aims at synchronizing electricity produced from renewable sources, such as solar and wind, with conventional power stations in the grid,” India’s Ministry of New and Renewable Energy says on its website.

One phase will supply 20 gigawatt (GW) of renewable energy to the national grid, the Hindustan Times reported.

Furthermore, the country is in the process of building 63 GW of renewable energy capacity, according to the report. Installed non-fossil fuel power capacity is expected to increase by 66% by 2030.

According to ratings agency ICRA, India’s renewable energy generation capacity will increase by 16 GW in fiscal year 2023.

India aims to cut projected emissions of carbon will by 1 billion tons by 2030.

Read more

India is trying to save some export bucks in the new year where specialty steel is concerned.

In 2022, India plans to focus on increasing per capita steel consumption enhancing steel raw material security.

All the metals intelligence you need in one user-friendly platform with unlimited usage — request a MetalMiner Insights platform demo

India seeks investors under PLI scheme for specialty steel

India

Zerophoto/Adobe Stock

In line with its announcement in mid-2021, the Government of India (GoI) recently invited applications from investors looking to invest under the production-linked incentive (PLI) scheme for specialty steel. The deadline for all submissions is March 29, 2022, as per the Ministry of Steel announcement. The incentive payout could well be over U.S. $840 million over five years for those companies participating in the scheme.

Specifically, specialty steel is a variety of the alloy that is enhanced by coating, plating, heat treatment, etc., to transform it into high-value steel for numerous strategic sectors, such as defense, space, power and automobiles, among others.

With the PLI scheme, India aims to become less dependent on special steel imports into India.

The PLI scheme aims to promote the manufacture of specialty steel grades in India. Furthermore, it seems to help the steel industry rise to the top of the value chain through technology development.

The broad five target categories for the scheme are: coated/plated products, high-strength/wear-resistant steel, specialty rails, alloy steel products and steel wires, and electrical steel.

Read more

News reports indicate India is set to become a net exporter of steel to China but will be surpassed by Indonesia as the world’s second-largest stainless steel producer.

A new report by a financial credit rating company has forecast that going by current trends, India would turn net exporter of steel to China in this fiscal.

India’s exports for the current fiscal year, said the report, “Steel Industry: Trends & Prospects” released recently by Infomerics Valuation and Rating Pvt Ltd., could surpass those of fiscal year 2021.

This comes despite India being hit by the COVID-19 pandemic and existing border tensions with China.

Do you know the five best practices of sourcing metals, including stainless steel?

Indonesia to pass India in stainless steel output; U.S. stainless output to rise

stainless steel coils

Jovanning/Adobe Stock

But the news of positive exports could be dampened a bit by another forecast.

Indonesia could replace India as the world’s second-largest producer of stainless steel, according to the U.K.-based research institute MEPS.

Per the institute, India’s No. 2 position is “under threat.” MEPS forecast global stainless steel production of 56.5 million tons in 2021, marking 11% year-over-year growth. Meanwhile, for 2022, it forecast output of 58.2 million tons in 2022, or up 2.5% year over year.

“Expansion in Indonesian output should continue to outpace that in India,” MEPS added. “However, rises in other regions are projected to be modest. This will bring little comfort to buyers that are contending with domestic shortages and soaring prices.”

The research institute said Indonesia is likely to displace India as the second-largest stainless steel producer this year with production of 4.5 million tons.

Meanwhile, in China, power rationing and turmoil in the real estate sector continue to impact output and consumption levels.

Read more

This morning in metals news: the European Commission this week announced anti-dumping duties for stainless steel cold-rolled flat products from India and Indonesia; the Energy Information Administration forecast crude oil prices will decline in 2022; and, lastly, U.S. housing starts declined in October.

Stay up to date on MetalMiner with weekly updates – without the sales pitch. Sign up now.

European Commission imposes AD duties on stainless from India, Indonesia

E.U. flag

Andrey Kuzmin/Adobe Stack

On Thursday, the European Commission announced it is imposing anti-dumping duties on stainless steel cold-rolled flat products from India and Indonesia.

The duties range from 13.9-35.3% for the exporting producers from India. Meanwhile, the duties range from 10.2-20.2% for the exporting producers from Indonesia.

“This sector is critically important to the EU because it is a high value added product, with EU consumption totalling almost €7 billion,” the European Commission said Thursday.

The duties will protect 13,500 direct E.U. jobs in the stainless steel cold-rolled flat sector, the European Commission claimed.

EIA: crude oil prices to come down in 2022

Providing some relief, the Energy Information Administration forecast crude oil prices will soften in 2022.

Read more

You do not have to look too hard to find failures of state-run economies around the world. Since the collapse of the Soviet Union, there is less enchantment with the model — outside China, anyway —  than there once was.

But what we remain plagued with is the idea government has a role in the ownership, operation and pricing of “strategic assets.”

We wrote recently about power rationing in China due in part to a political spat with Australia. As a result, Beijing decided it was a good idea not to buy Australian coal. In turn, it deprived the country’s power sector of a major source of supply.

Want an occasional email from MetalMiner that highlights new content with NO sales ploys? Join that list here.

India coal crisis

coal pile

ShiningBlack/Adobe Stock

This week, we cover India. The state’s ownership of the monolithic Coal India mining company has for years led to underperformance, underinvestment and inefficiency.

A Reuters article paints a dire picture of the perilous state of the Indian electrical generating sector.  Coal stocks have gotten so low that many generators risk running out of supplies.

As of Sept. 29, the post reports, 16 of India’s 135 coal-fired power plants had zero coal stocks, quoting Central Electricity Authority (CEA) data. Over half of the plants had stocks that would last fewer than three days. Meanwhile, over 80% had less than a week’s stock left.

Read more

Social network Facebook recently announced an agreement with a Mumbai-based clean energy firm CleanMax for a 32 MW wind power project in India’s southern province of Karnataka.

The MetalMiner Best Practice Library offers a wealth of knowledge and tips to help buyers stay on top of metals markets and buying strategies.

Facebook to purchase energy from Indian wind power project

wind power and solar power installations generation

lovelyday12/Adobe Stock

CleanMax will own and manage the plant. Meanwhile, Facebook will purchase the power produced.

Indian financial paper Mint quoted Urvi Parekh, head of renewable energy at Facebook, as saying the partnership will enable new solar and wind power to be generated in the near future. As such, it would contribute to the decarbonization of the Indian electrical grid.

Incidentally, nearly 50% of the project capacity has already been commissioned and is generating power.

This is not the first such project in Asia involving Facebook.

In October 2020, the social media giant signed a Power Purchase Agreement with a Singaporean energy company, Sunseap Group. The deal would see it utilize solar panels on the rooftops of 1,200 public housing blocks and 49 government buildings.

In turn, Facebook will receive Renewable Energy Credits (REC) produced by the project once it’s done next year. Facebook will buy up to 100 MW of power at a previously agreed upon price.

Last week, Facebook CEO Mark Zuckerberg announced his company’s global operations are now wholly supported by renewable energy and that Facebook had reached net-zero emissions. Furthermore, Facebook said it had reduced its greenhouse gas emissions by 94% over the last three years.

Facebook’s journey started back in 2011 with a wind project in Iowa.

Big Tech going green

Facebook and other data-center-reliant tech companies use up as much as 1% of the world’s total energy, according to the International Energy Agency.

It’s not just Facebook. Big Tech companies like Apple, Microsoft and Google have set net-zero emissions targets for their global operations.

Last July, Apple unveiled a plan to become carbon neutral for its supply chain and products by 2030.

That means even Apple’s manufacturers in India will be moving to 100% renewable energy. In addition, the company’s partners have 8 GW of planned clean energy set to come online by 2030.

Last week, Apple also announced that its US $4.7 billion green bond spend helped generate 1.2 gigawatts of renewable energy. In February 2016 the company issued its first US $1.5 billion Green Bond. It followed it up with another round of $1 billion in June 2017.

In November 2019, the company issued its third set of Green Bonds and its first in Europe. The bonds came in at 1 billion euros each (totaling nearly US $2.2 billion). In fact, Apple’s global corporate operations are already carbon neutral.

“Apple is dedicated to protecting the planet we all share with solutions that are supporting the communities where we work,” said Lisa Jackson, Apple’s vice president of environment, policy and social initiatives. “We all have a responsibility to do everything we can to fight against the impacts of climate change, and our $4.7 billion investment of the proceeds from our Green Bond sales is an important driver in our efforts. Ultimately, clean power is good business.”

While turning green themselves, these companies are also hastening the transformation of entire electricity systems in many parts of the world.

Want more from MetalMiner? We offer exclusive analyst commentary in our weekly updates – all metals, no sales fluff. Sign up today.

The Vedanta copper plant in India remains shut three years after local residents protested against pollution stemming from the plant’s operation.

That, however, has not fazed the Vedanta Group.

Get social with us. Follow MetalMiner on LinkedIn.

Vedanta to set up new copper smelter

Vedanta now plans to set up yet another plant in the country. The proposed copper smelter plant will have a capacity of 500,000 tons per year.

copper smelter

Bombardho/Adobe Stock

Vedanta Ltd, the subsidiary of Vedanta Resources, has called for expressions of interest from provincial governments in India regarding a new copper smelter unit.

A Vedanta spokesperson told the Business Standard India’s copper requirements will grow. Furthermore, the spokesperson emphasized ample supply of copper is critical for implementation of new-generation technologies.

Three years later

It’s been about three years since Vedanta’s Tamil Nadu smelter was shut down, causing it losses that are already running into millions of dollars.

Read more

India

Zerophoto/Adobe Stock

A budgetary proposal by the Indian government to reduce steel duties has divided the Indian steel sector.

India proposes reduction in steel duties

In her 2021 budget speech presented in parliament earlier in the week, Finance Minister Nirmala Sitharaman proposed reducing customs duty on imports of semi-flat steel. She proposed cutting the duy for the steel, used to make ships, bridges, line pipes and other equipment, from 12.5% to 7.5%.

Furthermore, the customs duty on longs — used to make rails and wire rods — may also be reduced from the present 10% to 7.5%.

Another proposal called for revoking anti-dumping and countervailing duties on straight length bars and rods of alloy steel, high-speed steel of non-cobalt grade flat-rolled product of steel, plated or coated with an alloy of aluminum or zinc.

At least initially, the move could be interpreted as India opening its doors to cheaper steel and reducing the tax on shipments of the alloy amid surging prices at home.

The chief executives of some of global steelmakers such as JSW and Tata Steel have opined that this would not allow any increase of flow in these steel items. Meanwhile, others fear it will have a negative impact on the profitability of domestic players.

The MetalMiner Best Practice Library offers a wealth of knowledge and tips to help buyers stay on top of metals markets and buying strategies.

Read more

India iron ore barge

natmat/Adobe Stock

A chorus of protests against Indian iron-ore exports — with associations of sponge iron and steel-forgings manufacturers making common cause with the India Steel Association (ISA) — has brought pressure on ministers to ban exports of iron ore.

Of those exports, 90% goes to China.

The groups are protesting in a bid to support domestic steel mills from rising raw material costs.

Ministers have refrained from taking action, arguing they would rather the market decide when it makes sense to export and when to import.

Want more from MetalMiner? We offer exclusive analyst commentary in our weekly, monthly, or quarterly updates – all metals, no sales fluff. Sign up here.

Iron ore export ban?

However, a ban hardly seems necessary.

A massive 30% export tax kicks in this quarter on the lower Fe grade material between 58 to 62%. That is expected to decimate exports this quarter, the Business Standard reports.

In an effort to improve supply, the authorities have taken action against underused mining leases.

According to the New Indian Express, production declined during 2020. Comparing the two years January to September 2019 to the same period in 2020, iron ore production totaled 110.95 million metric tons in 2019. Meanwhile, output reached 76.01 million metric tons in 2020, marking a 31.5% drop.

Read more

natural gas

sebos/Adobe Stock

The beginning of production at what is now Asia’s deepest offshore natural gas field will increase the share of natural gas India’s energy basket.

Become part of the MetalMiner LinkedIn group and stay connected to trends we’re watching and interesting metal facts.

India set to strengthen natural gas production

A few days ago, Reliance Industries Limited (RIL) and BP announced the start of production from the R Cluster, ultra-deepwater gas field in block KG D6 off the east coast of India. RIL and BP are developing three deepwater gas projects in block KG D6: R Cluster, Satellites Cluster and MJ –

Together, RIL said it expects the projects to meet over 15% of India’s natural gas demand by 2023.

What makes the find even more newsworthy is that it is located at a depth of more than 2,000 meters, making R Cluster the deepest offshore gas field in Asia.

Production ramp-up

By the end of next year it is expected to reach plateau gas production of about 12.9 million standard cubic meters per day (mmscmd), per MoneyControl.com.

These projects will utilize the existing hub infrastructure in KG D6 block. RIL is the operator of KG D6 with a 66.67% participating interest. BP holds a 33.33% participating interest.

R Cluster is about 60 kilometers from the existing KG D6 Control and Riser Platform (CRP).

Mukesh Ambani, chairman and managing director of Reliance Industries Limited, said in a press release that production from the natural gas field marked a “significant milestone” in India’s energy landscape for a cleaner and greener gas-based economy.

Read more

1 2 3 77