Only a week after President Donald Trump imposed levies on all US imports, India is set to join the global wave of steel protectionism by announcing plans for broad trade tariffs. As several countries erect barriers to stave against an influx of metal, especially from billion-ton manufacturer China, the world steel market is in turmoil. In a statement released on 18 March, the Indian Commerce Ministry suggested imposing interim “safeguard” taxes of 12% on a variety of steel items. According to the ministry’s statement, safeguard measures are employed when there is a surge of unanticipated, unfavourable imports that harm the domestic industry permanently or threaten to do so.
Why India has Opted for this Move?
Along with nations from Asia, Europe, and Latin America, India, the second-largest steel producer in the world, is requesting tariff relief. Trump’s 25% tariffs threaten to drive metal to other markets, and China’s property crisis has caused its steel exports to soar, adding to a global excess at a time when demand is weak. The preliminary ruling, which came after an examination by the nation’s trade commission, states that the planned taxes on Indian imports will be in effect for 200 days. Following a public hearing and 30 days of consultation, a final decision will be made. Despite output reductions, China continues to generate far more steel than it needs domestically, and exports reached a nine-year high in 2024. India also mentioned the effects of various trade restrictions throughout the world, as well as the slowing demand and the expansion of steel capacity in Asia more generally. According to the ministry, there are urgent situations in which failing to apply for temporary safeguards could result in harm that would be challenging to undo. According to government figures, China’s completed steel imports increased by 80% to 1.6 million tonnes in the first seven months of 2024.
In the notification, the Federal Trade Ministry’s Directorate General of Trade Remedies (DGTR) stated that the authority believes a 12% provisional safeguard duty will be suitable to eradicate the substantial harm and threat it poses to domestic industry. According to the notice, the DGTR has also requested feedback on its conclusions within 30 days, after which an oral hearing will be held before a final judgement is made.
Ongoing Scenario of India’s Steel Sector
India’s steel production has increased significantly over the last ten years, but it still only accounted for 15% of China’s output last year. In order to support the nation’s industrialisation and urbanisation, its producers have ambitious long-term expansion goals. The large group of steelmakers who had requested the investigation through the Indian Steel Association will feel some relief if the duty is enforced. The government had been asked by a number of producers to impose a four-year safeguard duty.
The Mittal Steel Company, owned by Mr. Lakshmi Mittal, is the largest steel producer in the world. The company became a part of ArcelorMittal, a merger between Mittal Steel and Arcelor. How L.N Mittal formed this company and became one of the most remarkable Indian steel magnates of this time is an awestruck story worth reading.
Lakshmi Mittal was born in a small village in Rajasthan, India. He got his early education in native school and later on went to England for pursuing higher studies. Since his childhood, Lakshmi has been an avid flier and traveler.
He travels because his empire is spread throughout the world. He manages his empire that employs some 165000 workers.
Laxmi Mittal is one of those entrepreneurs who dream and try to fulfill those dreams. In India, he is better known as one of the richest Indians but in the world, he is known as the person who has chased only one dream that was to create a new architecture for steel business.
Lakshmi Mittal
He started off by acquiring loss-making steel mills across the world & made them profitable, using the strategy of ‘Turnaround’ to build his empire. Now 43 years later, he owns the world’s largest steel and mining company, ArcelorMittal. His company produces more steel than the whole of the US and the UK, combined. And earns more revenue than major companies like Facebook, Unilever, and FedEx.
He has been crazy about buying and acquiring one steel firm after another. He took over an oiling plant in Indonesia and in 2004 he emerged as the biggest steelmaker in the world. He bought ISG on October 1, 2004, and presented it to his father who was in Tirupati as a birthday gift from a son. He is the world’s biggest steelmaker and one of the top billionaires.
Mittal Steel Company was originally formed as Ispat International in 1978. At the time it was part of the Indian Steel making company Ispat Industries which was founded by Lakshmi Mittal’s father and was owned by his family, but in 1995 it separated from that company after various disagreements between Lakshmi and his father.
In 1989, the company acquired Iron & Steel Company of Trinidad & Tobago. In 1992, the company acquired Sibalsa. In 1994, the company acquired Sidbec-Dosco. In 1995, the company acquired Hamburger Stahlwerke, which formed Ispat International Ltd. and Ispat Shipping and also bought Karmet Steel of Temirtau, Kazakhstan. In 1997, the company acquired Walzdraht Hochfeld GmbH and Stahlwerk Ruhrort. In 1997, the company went public as Ispat International NV. In 1998, the company acquired Inland Steel Company. In 1999, the company acquired Unimétal. In 2001, the company acquired ALFASID and Sidex. In 2002, it bought a majority stake in Iscor. In 2003, the company acquired Nowa Huta.
In 2004, the company acquired Polskie Huty Stali, BH Steel, and certain Macedonian facilities from Balkan Steel. In 2005, the company hired Deloitte as the primary auditors for the company. In 2005, the company acquired the International Steel Group. In 2005, the company acquired Kryvorizhstal. In 2005, the company announced an investment of $9 billion in Jharkhand, India. In 2006, the company merged with Arcelor after much controversy. In 2006, the company announced investment for a 12 million tonne capacity steel plant in Odisha, India.
Business Empire of ArcelorMittal
ArcelorMittal is a major steel supplier for General Motors & Ford. He produces 70 million tonnes of steel every year. Not only that, but a whopping 20% of all global car production is also made from ArcelorMittal steel. Their steel has also been used in major US landmarks like One World Trade Centre, Rockefeller Center, the New New York Bridge, and even in high-tech submarine-like USS Indiana, Navy ships. The largest US-built containership DKI and also aircraft carriers. Not only that, but New York’s iconic Empire State Building was also made from structural steel supplied by ArcelorMittal’s predecessor company, Bethlehem Steel.
ArcelorMittal Business Empire.
Global Business Expansion of ArcelorMittal
Antarctica: In Antarctica, ArcelorMittal steel has been used in the construction of the world’s first zero-emission polar research station, Princess Elisabeth Antarctica. Moreover, the group has also manufactured steel for an under-construction 156m-long Antarctic Supply Research Vessel.
Canada: Here the group owns one of Canada’s largest steel plants. Moreover, the group also operates 6 more production facilities, an iron ore mining plant at Mont-Wright, runs a 420-kilometer long railway line, and also operates Canada’s largest private port, Port-Cartier.
United States: The ArcelorMittal group owns North America’s largest integrated steel plant in Chicago and the world’s most productive steel mill in Cleveland. Which was even visited by the former US president. Overall, in the US, ArcelorMittal operates over 20 manufacturing facilities, Iron Ore and Coal Mines in Virginia, and employs over 18,000 people, around two times more than how many people Yahoo employs.
Mexico: Here the group operates six steel manufacturing units, iron ore & coal mines, and is also the largest employer in the port city of Lazaro. The second-largest cruise ship in the world, the Harmony of the Seas. The gigantic ship has 2,700 staterooms, 20 restaurants, 23 swimming pools, and yes, this whole cruise is also made from ArcelorMittal Steel. Taking about ships, the group also operates a shipping company and owns a fleet of large Panama bulk carriers.
South America: Here, ArcelorMittal operates five long steel manufacturing plants and holds a whopping 60% market share in nearby Brazil. The group is involved in Iron ore mining and also operates 27 steel production facilities. In Brazil, ArcelorMittal steel has been used in an Olympic Stadium, a football stadium, and a Bridge in Rio de Janeiro.
The group’s expansion is also rooted in other countries like Africa, Europe, France, London, India, China, etc.
Moreover, in Europe, ArcelorMittal is the largest foreign investor in Ukraine and Bosnia & is also the largest steel producer in Spain, Czech Republic, Poland, Romania. And the group is Luxembourg’s largest private employer.
Steel Producers’ Ranking
Not only that, but Lakshmi Mittal’s company also operates charity foundations in Brazil, Argentina, Liberia and has even contributed to flooding relief in Bosnia. Lakshmi Mittal has certainly created an incredible conglomerate and has traveled a long way from a small village in Rajasthan.
FAQs
Who is the founder of ArcelorMittal?
Lakshmi Mittal is the founder of ArcelorMittal and also serves as its CEO.
Is ArcelorMittal a mining company?
ArcelorMittal is the the world’s leading steel and mining company.
The rise of the second wave of Covid 19 in India has led to a lot of infections and an increased demand for oxygen across the country. Many states have reported that there is a lack of oxygen in the hospitals and there are a lot of patients in requirement of oxygen.
The shortage of oxygen has led to the death of several patients in the hospitals. Amidst the chaos, several private and public sector companies have changed their manufacturing plants and converted those into manufacturing of oxygen. Heres a list of companies that have started manufacturing oxygen cylinders in India.
Reliance Industries Ltd is a multinational company which has its headquarters in Mumbai, India. Reliance Industries is owned by Mukesh Ambani. The Jamnagar Oil Refineries of reliance Industries have been changed to manufacture medical-grade oxygen cylinders.
The company has said that it would manufacture around 700 tones of medical-grade oxygen cylinders per day and has plans to distribute it freely to the states that are affected by Covid-19. The Jamnagar Oil Refineries is located in Gujarat, India.
The plant had started the manufacturing of 100 tones of medical-grade oxygen cylinders in the beginning and later it was increased to 700 tones because of the requirement. The company has plans to increase the manufacturing output of medical-grade oxygen cylinders to up to 1000 tones in a short span of time.
JSW Steel
JSW steel is an Indian company which is involved in the manufacturing of steel. The company has its headquarters located in Mumbai, India. The company had recently revealed that its Dolvi Plant in the state of Maharashtra was manufacturing around 185 tones of medical oxygen and supplying it according to the requirement from last week.
JSW Steel also has plans to increase the manufacturing of medical oxygen their other 3 plants which are Ballari plant in the state of Karnataka, Dolvi Plant in the state of Maharashtra and Salem plant in the state of Tamil Nadu.
The company is working towards manufacturing and providing around 600 tones of oxygen on a daily basis. The company is also planning a strategy to increase its manufacturing and supply of oxygen in its Tamil Nadu factory.
Tata Group is a multinational company which has its headquarters located in Mumbai, India. Tata group is one of the oldest and the biggest companies in India.
The subsidiaries of the Tata group such as Tata Steel are in the process of transferring oxygen to the states which have an increased demand for medical oxygen.
To bring a solution to the shortage of oxygen supply, the company has taken a decision and declared that in order to carry liquid oxygen, they would import around 24 cryogenic containers.
The cryogenic containers are known for storing gases that are liquified at very low temperatures because of their design which contains dual walls. There are also multilayer insulation vessels.
How is liquid oxygen transported
Vedanta
Vedanta Company is an Indian-based company which is involved in the mining. They have mined in different states such as Goa, Rajasthan, Karnataka and Odisha. Their main operations include mining of iron ore, aluminum and gold. The company has its headquarters located in Mumbai, India.
Vedanta has offered to provide oxygen from its Plant in Tamil Nadu which is located in Thoothukudi and is a decommissioned Sterlite Copper Plant. According to Vedanta, their factory has around 2 oxygen plants and is expecting to manufacture around 1,050 tones combined from both the plants on a daily basis.
Steel Authority of India Limited (SAIL) is a steel manufacturing company. It is an enterprise which is owned by the Government of India. The company has its headquarters located in New Delhi, India.
According to a report from SAIL, the company has supplied around 35,000 tones of liquid oxygen from its manufacturing plants. The oxygen is said to have a purity of around 99.7 %.
The manufacturing plants of SAIL are located in Bokaro plant which is in the state of Jharkhand, Bhilai plant which is in the state of Chhattisgarh, Rourkela plant which is in the state of Odisha, Durgapur plant and Burnpur plants.
IOL and Bharat Petroleum
Indian Oil Corporation (IOL) is an oil and gas corporation which is under the Government of India. It has its headquarters located in New Delhi, India. It is the largest commercial oil company in the country.
Bharat Petroleum Corporation Limited (BPCL) is also an oil and gas corporation which is under the Government of India. It has its headquarters located in Mumbai, India, it is the second largest commercial oil company in the country.
IOC and BPCL have also started supplying medical oxygen from their plants. They have begun redirecting the oxygen that are generated in their refineries to provide medical oxygen to the states that are affected by Covid-19.
They have supplied oxygen to various hospitals such as Delhi, Punjab and Haryana. IOC has begun supplying around 150 tonnes of oxygen on a daily basis and BPCL has begun supplying around 100 tonnes of oxygen on a daily basis for free of cost.
Rashtriya Ispat Nigam Limited is a steel producer company. The company has its headquarters in Vishakhapatnam, India. Rashtriya Ispat Nigam Limited has provided liquid oxygen to Andhra Pradesh and other states that are affected by Covid-19.
They have added 5 units of oxygen extraction plants in which 3 plants have the capacity to produce around 550 tones on a daily basis and the other 2 units will have the capacity to produce around 600 tones on a daily basis.
The company is producing around 100 tones of liquid oxygen and around 2,600 tones of gas oxygen on a daily basis.
IFFCO
Indian Farmers Fertilizer Co-operative Limited (IFFCO) is a Multi-state cooperative society which has its headquarters in New Delhi, India. They are involved in the manufacturing and marketing of fertilizers.
IFFCO has said that in the next 15 days they would set up 4 oxygen plants for an approximate rate of around INR 30 crores. The plants will be created in Paradise (Odisha), Aonla, Phulpura (Uttar Pradesh), and Kalol (Gujarat).
FAQ
Is US helping India with Covid?
As per the Officials the U.S. is trying to help India deal with its coronavirus surge.
How much vaccination is done in India?
India has completed 14 crore COVID-19 vaccine doses in total 99 days.
Which company made Covaxin vaccine?
Covaxin has been developed by Hyderabad-based company Bharat Biotech in collaboration with the Indian Council for Medical Research (ICMR) and the National Institute of Virology.
Conclusion
This is a major step taken by these companies to help the society and the citizens of the country. Mostly all the companies have been providing the oxygen for free of cost. We may be able to see a lot more companies coming together to support the country from a big crisis.
