Ingot/Billet: BIS standards to become mandatory from April 1st

In a notice, ordered by Indian steel ministry (http://steel.gov.in/QC-1st%20order.pdf) on implementing BIS standards for steel ingots and billets will become mandatory from 1st of April 2013. Earlier the Indian steel ministry in an amendment has extended the implementation from 12th Sep 2012 to 31st March 2013. BIS standards are also mandatory for finish steel as Plate, Angle, Channel and Beam w.e.f 31st March 2013.

In North India its impact has started affecting the trading practice. Major producers like Rathi TMT has started buying ISI Ingot as per BIS norms of 2830 (i.e. sulphur and phosphorous below 100, whereas in commercial grade it varies from 120-150). Rathi’s Broker in Ghaziabad said, “We are not buying any Non BIS material from 15th March 2013. Material from Chhattisgarh, Rourkela and Durgapur also checked trading in U.P due to Non BIS quality issue.” In Ghaziabad BIS Ingot (IS Ingot) is trading at premium of Rs 500 per ton to Rs 32,600 (basic) from commercial grade of Rs 32,100 (basic). Similarly in other parts of North India as Bhiwadi, Jaipur, Muzaffarnagar, IS Ingot is being preferred over commercial Ingot.

Many Ingot manufacturers have received the BIS certificate but due to non availability of high grade sponge and scrap with low sulphur and phosphorous, manufacturing BIS Ingot/Billet has been difficult. Especially in sponge prolonged area like Raipur, Rourkela and Durgapur, controlling Phosphorous in Ingot/Billet below 0.75 is a challenge. Steel Ministry quality order does not apply to sponge and scrap trading.

Raipur based Manufacturers says, “ISI Ingot will be premium of Rs 1,000-1,200 from commercial Ingot due to low phosphorous and high cost of manufacturing. We need to use more scrap over sponge to make ingot, but non availability of bulk domestic scrap and ban over imported HMS scrap through Raipur ICD will hit the local industry.”