Despite the acute shortage of tinplate/tin-free steel in the country, the applications of three leading international suppliers are pending. As per IS1993:2018, for tinplates, the players are Nippon Steel Corporation (two plants) of Japan, JSC Arcelor Temirtau, Kazakstan and China-based GDH Zhongyue (Zhongshan) Tinplate Industry Co Ltd, SteelMint has learnt.
In tin-free, four applications are pending as per IS 12591:2018. These are two plants from Nippon Steel Corporation, Japan, China’s GDH Zhongyue (Zhonghshan) Tinplate Industry Co Ltd and Jiangsu Suxan New Material Co Ltd.
Scarce imports
SteelMint had earlier reported that the shortage of the metal is stemming from scarce imports of both materials on account of a government standard imposition. On 17 July’20, the Government of India had imposed a BIS standard (Quality Control Order) on imports of tinplate/tin-free steel/products like easy-open ends, peel-off ends etc. Implementation of the same has now been extended up to 17 July’21.
The above exporters of tinplate as well as smaller players have applied to the BIS for getting the registration and approval of their plants but all such applications have been put on hold because of the Covid surge. These applications are pending since last year, it is learnt, because, presently foreign inspection visits are on hold due to restrictions imposed on international travel by GoI as well as governments of other countries in view of the pandemic.
As per Sanjay Bhatia, President, Metal Can Manufacturers Association (MCMA), these overseas players have the capacities and interest in supplying to Indian market but they are not able to do so due to pending approval of their applications. There are other companies too which want to apply but know that the timing is not right at present, he added.
Domestic scenario
The demand for tinplate and tin-free steel in India is 7 lakh tonnes per annum and growing at 5-7% per annum. Around 2.5 lakh tonnes are met through imports while 4-4.5 lakh tonnes are produced domestically. However, the bulk comprises tinplate with the share of tin-free steel at less than 1 lakh tonnes. The material is mainly used in the manufacture of cans and easy-open ends in the food processing and other industries.
Two major players contribute to the domestic 4-4.5 lakh tonnes per annum — The Tinplate Company of India Limited (TCIL), a subsidiary of Tata Steel, and JSW Steel. As per Bhatia, Tatas contribute almost 3 lakh tonnes and JSW Steel 1.5 lakh tonnes to the domestic market while both players also export from total capacities.
In 2019, JSW Steel had an annual cumulative installed tinplate capacity of 3.5 lakh tonnes, of which 1 lakh tonne was through the joint venture company, JSW Vallabh Tinplate. A second phase of expansion was under way towards building a capacity of 6 lakh tonnes per annum, higher than Tata Tinplate’s 3.80 lakh tonnes, as per a media report.
Time is a factor
At present, the dwindling supply is bothering the end-user industry. Bhatia said there is a lead time for can manufacturers. If a manufacturer places an order with a foreign supplier, the consignment will take at least 4-5 months to reach India. “It will take 2-3 months to produce the material and at least 1.5 months for shipping,” said Bhatia.
“Moreover, the government has extended the steel quality control order by only three months. So we are not really being able to create any orders and neither are suppliers accepting the same, because they know they may not be able to ship these in time. As a result, imports have decreased substantially,” Bhatia added.
Another end-user said: “Supply from domestic producers is very tight at present. I am seeking 1,500 tonnes by June but our domestic suppliers are being able to commit only 500 tonnes by that period.”
Only secondary sector, off-the-shelf material is being imported at present, it is learnt.
Several representations have been made by MCMA to the Ministry of Steel and Ministry of MSME for extension of the steel quality control order date till March 2022 due to prevailing pandemic. The MCMA has also recommended complete withdrawal of the quality control order.
~ By Madhumita Mookerji
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