Pre-engineered structures; A new trend in Steel Market

Steel has many valuable points in its court that makes it one of the most preferred material in modern constructions. Each trend in Steel Sector comes up with a long lasting promise of quality, durability & aesthetic features.  Across the world, steel structures have created wonders with their appearances and strong built. Many renowned engineers have ticked an assured yes before steel in terms of its trustworthiness.

And here comes a time to get introduced with the new trend in the steel industry. It is Pre-engineered Steel Buildings. A very new, very challenging trend with a huge market scope in India is making news nowadays. Let’s know a few details about the same. The huge development in the economic infrastructure of our country has boosted the latest trend in steel market to emerge and grow at the highest speed. This new trend is known as Pre-engineered Steel Buildings(PEB) and it has become a popular name in the industrial sector as well. The growth in the sectors of logistics, Pharma, automotive, FMCG, etc is directly proportional to the huge number of opportunities for PEB in Indian Market.

PEB makes detailing of the external structural easier and thus helps in executing the concept more confidently. Initially, this type of feature was not in demand at all. But after a certain point of time when the construction process paced up, space availability was limited and portability became the need of hour, PEB was preferred by maximum manufacturers, architects in the steel industry. The reason why it has gain so much popularity in such less time is because of it being recyclable, having scrap value and it can also be dismantled and placed at some other location.  Moreover, it can be erected at some outside location and easily be transported anywhere. 

Yet, a large number of the market segment does not view prefabricated steel with a positive perspective. There is a need to aware them about the benefits of PEB in construction. PEB brings freedom to designers while executing the concept with class & creativity. It is flexible, durable and a quality oriented mechanism. Apart from the sectors mentioned above, PEB will have various applications in Heavy Engineering and larger Infrastructure projects such as Airports, Terminals, and Railways. It seems that this trend is going to be productive and long lasting for sure!

An outlook on Steel demand & supply, 2017

The new infrastructural developments by the government and other private bodies have made steel the most demandable metal in last 5 years. In each sector, right from construction to electronics, steel demand has spaced up like never before.


      The reason behind is ever escalating business graph in India. We are at a super speed mode in terms of economical & infrastructural development. This has a direct relation to the need of high-quality steel available in suffice quantity. It’s the need of the most challenging phase of our nation.

      Along with the infrastructural requirement, steel products are produced to meet the demand in the innovative phase of the automotive industry. Hence, steel consumption is predicted to reach 104 MT by 2017. This has made steel demand to overtake the actual steel supply.


      To bridge the gap of production, steel companies are putting their maximum efforts. At VKICL, we have set out an effective plan to increase our imports & meet the demands of our customers. We take a pride in contributing our hard work in building up a strong infrastructure of our nation. The current situation has given us a challenge & we are more than happy to work towards achieving success.The other sectors that will expectedly consume steel produce in maximum amount are industrial sectors and infra expenditure projects like railways, roads & highways, etc. This is a sign of improved facilities for the citizens of India. In all the development, steel plays a major part. Our infrastructural necessities are highly dependent on steel.


      This constant demand and supply of steel has made India, the 3rd largest steel producer in the world. Indians always look for safety and sustainability in construction and thus, steel is a preferable metal here. With each invention & innovation, steel produce will always witness a growing graph of demand and supply.

 

      The government of India has always encouraged high-quality steel produced. It has now allowed 100% foreign direct investment in the steel sector under the automatic rule. This has opened new waves of advancement & creative inventions in steel production.Along with this, ‘The scheme for the promotion of R&D in the iron and steel sector’ and ‘The development of technology for Cold-Rolled Grain Oriented (CRGO) steel sheets and other value-added products’ are some of the new schemes to be implemented by Indian Government.


      Such support truly motivates us to innovate, produce and supply steel to meet demands from each and every corner of our country as well as abroad. Indian steel sector is witnessing good days & we, at VKICL would like to take this opportunity to serve our clients with the best steel products.

Automobile Scrappage in India: A Boon for Steel Industry

Indian recycling sector is slowly gaining momentum, as we are now looking forward to ways to recycle and reuse the materials which we use in our daily lives. Many such policies, which have been successful in the Developed Nations, are now entering the Indian Market scenario, and the Indian Government too has been drafting such policies to make efficient usage of resources.

     Vehicle scrappage or recycling is one such concept that has been the focus of the Indian Government in recent times. Many nations have successfully adopted and executed such policies, helping them to reduce scrap wastage and preserve their nation’s resources. But owing to the highly unorganized nature of the Indian recycling sector, there is no policy which has been undertaken. But considering the pace at which our nation is growing and utilising goods, it is probably one of the best techniques to reuse and recycle metals.

       The Society of Indian Automobile Manufacturers (SIAM) has suggested that every vehicle of over 15 years and pollution contributing vehicles which amount in significant amount of pollution should be scrapped off. 

        A voluntary participation in the program can offer the customer attractive incentives on next vehicle purchase and ensure there is positive participation in the program.

The following benefits could be identified with, if the scheme is being undertaken.

Increase in Steel demand – To supply the new vehicle demand in the market, tremendous amount of steel would be required by automobile manufacturing companies to meet the new demand.

Environment Conservation – Vehicles are a major contributor to air pollution and older vehicles emit harmful chemicals as well. The pollution levels in metro cities like Delhi, Mumbai & Bangalore have already reached an alarming level. Taking corrective measures by taking old vehicles off the road will be a huge relief for the environment.

New Car Market – With attractive incentive schemes for car owners, many would scrap their old vehicles and go for new ones. This would create a demand for new vehicles and help boost the automobile industry.  

Business Opportunity - Vehicle scrapping units and facilities is a potential market for India and foreign investors. Currently it lacks steady organisation and needs recalibration. It’s a vital & potential field that needs to be explored and capitalised upon.

If India undertakes a metal or vehicle recycling/ scrappage policy it will only benefit from it in the coming decades, by taking steps to conserve the environment and create new potential in the automobile industry. 

Factors that will influence the Steel Market in 2017

FY2016 witnessed a lot of ups & downs in the steel market, right from China being slammed with protection duties from various nations to developing nations increasing their production capacities to meet the new infrastructure demand. Let us now see what this New Year brings and which crucial factors shall influence the international steel market.

Demonetization in India:  Demonetization was implemented in November’16 in and its shock waves can still be felt in the market.  From being a corrective measure, demonetization has turned out to be a crisis for the market.

This year the effects will certainly guide the Indian Steel Industry. And the Industry has been definitely affected in almost every area right from sales & purchases to logistics & production. This situation is expected to drag in to the first quarter of FY18 before normalising. Industry experts are of the opinion that the overall steel consumption will decline due to the degraded purchasing power. 

Steel from China: In early 2016, China made promises of cuts in steel production capacities, reduced coal mining and tightened environmental norms to reduce it outgrowing steel production after facing protective measures against its steel exports from nations like Inida, Europe, USA and others. But figuratively, the drop from FY15 to FY16 is a mere 0.8 % in exports. Experts are predicting that even in 2017, exports from China are not expected to take a step back either and cheap Chinese steel exports will further pressurise the global steel prices and markets.

The FTA Conundrum: Further strengthening relationship with neighbours could cost India a domestic discontent in the steel market. India is committed to reduce import duty from Korea to nil by this year under CEPA (Comprehensive Economic Partnership Agreement) and under similar agreement import duty on steel from Japan is reduced to 0.8%. This has led to a rise in imports from these two nations which has significantly increased from 23% during 2009-10 to 43% in 2015-16.

Trump comes to Power: The world is getting used to the fact that Donald Trump is the President of United States. The US steel industry was highlighted by Trump in his election campaigns where he has promised to bring back the heyday of American steel Industry by implying stricter import policies and promoting use of domestic steel, which got everybody shifting in their seats. But while he has been aggressively advocating domestic steel in construction he has been known to use international steel to build his empire.  So while experts are speculating that US of A will cut down its steel imports, experienced steel players say otherwise.

Budding Scrap Destinations: The South East Asian countries are gaining popularity as hub for ferrous scrap metal. The ferrous imports from these nations have significantly increased over the decade. These nations are a promising ground for recycling and getting recycled steel back into the markets via exports. 

Pollution Concern:  Developing nations like India & China are facing air pollution which has reached hazardous levels. And since building infrastructure and construction requires a lot of energy from fossil resources. Coal burning is one of the main issues of the population level in these nations. If the governing bodies try to keep a tab on construction or infrastructure projects which are contributors to air pollution the steel industry might witness a drop in the demand of steel from these nations.

  

All these factors are going to be deciding factors for the steel prices and trends in the international steel market.

Bibliography:

Steel 360 Magazine, January Issue

Lawder, D. (2016, December 13). Trump packs trade team with veterans of steel wars with China (Reuters, Ed.). Retrieved February 17, 2017, from http://www.reuters.com/article/us-usa-trump-china-trade-analysis-idUSKBN13Y2FI

Fastner Fixing Magazine. (2017, January 23). Material trends 2017 – steel. Retrieved February 17, 2017, from http://www.fastenerandfixing.com/news/material-trends-2017-steel

Frutos, Rahul de. (2017, January 3). Steel Prices Could Surge in 2017 as China Tackles Pollution. Retrieved February 17, 2017, from http://agmetalminer.com/2017/01/03/steel-prices-could-surge-in-2017-as-china-tackles-pollution/

Reuters. (2016, November 22). China: To fight air pollution, steel city orders closing of more plants. Retrieved February 17, 2017, from http://indianexpress.com/article/world/world-news/china-to-fight-air-pollution-steel-city-orders-closing-of-more-plants-4389668/

36 Years of Hardwork and Dedication

This year will be marked as a glorious year in the History of VKICL as we stand on a milestone of 36^th year in 2017. It is a moment of immense happiness and great pride for our organisation. One Courageous dream to build an identity in the Steel Industry has made a history & a journey worth cherishing today.

We started as a stockiest and dealer of special quality steel plates. Slowly to meet the ever increasing demand from our customer, VKICL took its next step as a Steel Importer. Recalling such events takes us down to an inspiring journey of our founding members. Through our management team & its mission to achieve big has made it possible to set a benchmark in the Indian Steel Industry. VKICL takes this opportunity to thank each and every employee, committee members & higher authorities for an outstanding work & their hard work since inception. We are amazed and grateful to all of you.

At VKICL, quality & durability is our prime objective which has made us a trustworthy name in the industry and we are proud of this fact. Along with high standard features, we give major preference to import products that help in creating modern & aesthetic architectural wonders. Thus, when it comes to flexible steel products, our name comes in the preferred list.

In the coming years, we plan to introduce a lot more innovative & technologically advanced products. With 36 years of experience, we have got a new zeal to accomplish new mottos & new goals. With a team of sincere & trustworthy crew, we are all set to mark VKICL steel on the World Map with new records & achievements. Now, the journey is about reaching the globe.

We are thankful to our customers for making us one of the trustworthy names in the Steel Industry. And the journey to explore new challenges begins...

A quick glance at our Corporate Chronology. 

     

Chabahar Port deal: An advantage for the Indian Steel Market.

          It is for the first time that India has such keen interest in developing an international port, all owing to its strategic location and the trade routes it opens up for International trade.

          

          The development of the Chabahar Port is estimated to be a breakthrough for opening up new trade routes for trade and establish a healthy network and market in West Asia. 

          These new route would facilitate new trade markets which would cater to the complete region. Also, considering the fact that the Nations in these regions are still developing and going through an industrial phase, the demand of steel from the international market would see a visible surge for construction and developing the infrastructure.

    

          As the new port will directly cater to Iran, India expects to see an increase in trade from this region as it will have direct access and connect it to other major ports.

        

         The Chabahar Port will be a game changer for India because it will provide connectivity to Afghanistan, Iran and Eurasia, strategically outflanking an intransigent Islamabad. It is also a counter to the China-Pakistan Economic Corridor (CPEC). Foreign minister Sushma Swaraj’s interest in connecting Iran’s Mashhad, near the Caspian Sea, with Zahedan, next to the Afghanistan border, via an India-built 900-km rail line with the Chabahar Port will unlock a new gateway to Central Asia and Europe, bypassing the Pakistan-China arc.

      For both, developing the port and constructing the railway line, the projects would demand for a lot of steel imports from the international steel market from these region.

      The bilateral agreement to develop the Chabahar port and related infrastructure, and availability of about $500m from India for this purpose, is an important milestone. This major effort would boost economic growth in the region and accelerate the rate of development for the neighbouring countries.

10 Ways to Get the Best Offer for Finished Steel

     With global market becoming less fragmented, and the reach of the customer across the globe, it is crucial to be able to ask for right quotes in the market. Steel market being no exception, its crucial for the stock holder or the company you are interested in dealing with, to understand your demand and request and send you offer in time.

    Since there is no set procedure to request a quote, we at VKICL draft out a few pointers for you to get better quotes promptly.

   An RFQ, or Request for Quotation is drafted by the customer towards the stock holder or steel company he is interested in. The following points should be kept in mind while drafting a sharp RFQ for better results.

1.      Grades and Specification - Mention the required grade or specification in the steel sheets you’re looking out for. Certain grades require different treatment and cost more.
 

2.      Country of Origin/Mill – Various projects require steel from specific countries or mills depending on which countries and mills are approved for the project. Hence, it is very important to specify make or mill required in the RFQ for the best and appropriate offer.

 
 
3.      Syntax – Follow the industry standard for your specific inquiries. For Sheets/Plates mention the size in the following format:
Thickness (mm) x Width (mm) x Length (mm) – No. of Pcs
It’ll be easier to calculate per unit cost for your order as well. You can also use our weight calculator for the same - http://vkicl.com/Steel-Theoretical.html

 
4.      Delivery Timeline – Mention the delivery timeline in the RFQ, this way the company will be able to gauge its delivery dispatch time in advance and availability of the product as well. Sometimes, this can help in reducing the cost if make to order with lead times is acceptable.

 

5.      Dimensions – Most plates and sheets are available in standard sizes. To avoid wastage, if you specify your required dimensions, the company will provide you with the best suitable options. Moreover, you can also inform the designer about the standard sizes so as to reduce cost of the project.

 
6.      Equivalent Grade – Moreover, state clearly if equivalent grades in different standards are acceptable. This helps in getting an offer if the required grade is not available.

 
7.      Thickness – Because of the standard dimensions, standard thickness are available with companies. And based on your demand, they’ll provide with the best alternative. You must always specify if you’re okay with higher or lower thickness of sheets as well.

 
8.      Other Special Requirement: Different types of projects required different types of steel. Sometime additional tests are required in a particular grade. For example UT testing as per EN standard or Z-test. The same should be stated clearly in the RFQ for appropriate offer. Each additional requirement costs extra and not all plates pass for the same.

 
9.      Bid Closing Period – Always specify when is the RFQ or Bid closing date, it’ll help the companies to keep a track for sending quotes and knowing the results.

 

10.   Visit our website http://vkicl.com/  to know about more steel products and inquire about your demand.

 
Usually each company has its own standard format for RFQ’s, so that they can quickly and easily filter the required information. However, the same is not apt for getting offer. Thus, you can always customize your form based upon your request and try the following points during your next procurement period.