Steel Industry in China

Steel production increased rapidly during the post-World War 2 era. Many countries developed at a rapid rate with amazing construction booms. Steel making process involves the use of iron ore and scrap. The process includes the exclusion of impure elements like nitrogen, excess carbon, sulfur silicon, etc. In order to obtain various grades of steel elements like vanadium, manganese, nickel, and chromium are added during production. The introduction of Bessemer and Siemens-Martin processes revolutionized production globally.     

The capital reforms under Deng Xiaoping gave a big boost to Chinese industrialization.  lagging much behind the global steel industry the reforms brought about a paradigm shift and augured production.   

By 2011 China became the largest producer of steel in the World. The production rose to over 680 million tonnes accounting for forty-five percent of global production. This is despite stiff competition by major players and unstable prices of raw materials. As per the trend in almost every sector, the industry experienced a price rise within this period.  

The production continued to peak until its decline in the year 2016 which resulted in a stock market crash in that country. This came about as a result of other countries exports, especially from Russia and Ukraine. 

The largest steel producers in China are Hesteel Group with production being 31 million tonnes which is much below Arcelor Mittal. The latter is the largest steel producer in the World with 116 million tonnes. Other major producers of this commodity are Jiangsu Shagang, Ansteel, and  Baosteel groups. India ranks fourth in the production of steel and is undergoing a rise in production along with new entrants like Brazil and South Korea.     

Factors That Influence Steel Price

Understanding the factors that play an important role in pricing and production is necessary for those in the fabrication industry.  The industry uses many types of metals derived from steel. Like any other raw material used in fabrication and manufacturing a number of factors are influential.   

 The factors affecting may not necessarily be local but nowadays global impacts are applicable to nearly all industries. Hence some of these are: 

OIL Prices  

Oil prices govern all industries that are energy-dependent directly or indirectly. More so the effect could be indirect because alternate energy production in a way is linked to oil prices. Fossil fuel is required during the production of steel hence high price means a high cost of production.     

Demand 

Both local and international steel demands affect the selling prices. It is a competitive industry and high or low demand has a definite impact on sales.   

Construction  

Steel in one form or other is required by the construction industry. Hence the demand for the raw material is directly in proportion to the construction activity. In recent times this industry is experiencing a boom in the US and many other countries of the World. 

New methodologies like the fabrication of lightweight steel to make building parts have further the demand. World over the steel fabrication business is on the rise. This is due to cost reduction and the long-term benefits of lightweight steel fabrication. Quick installation is another virtue due to which this technology is gaining ground.        

Steel No More Steel

After a lull in steel prices, the market seems to be picking up and a brighter forecast spells a steady rise in the segment. This is also the same with iron ore partly due to the rise in demand from the Chinese market. The demand from China seems to be improving steadily as demands arise from its infrastructure development projects. 

There has been an improvement in steel demands in US and Europe as well. The imposition of anti-dumping duty has also benefited concerns like Arcelor Mittal.  

But the biggest concern in news is the Tata's Steel concerns in the UK. Due to hurdles regarding the pension fund which has created a liability of seven hundred million pounds, it seems a sell-off is unlikely. A potential strategic partnership seems to be a better bet for the ailing business.  But this is a tardy process and is at a preliminary stage.  Another recourse is to cut costs as much as possible. How this will be brought is not clear.     

The problem has arisen due to low prices in the steel market. This was in making as the World was oversupplied with steel. The China-driven demand faced a standoff due to slack in its industries. To make matters worse the local production of Chinese arose significantly. Excess production was dumped outside the country triggering stiff competition from global manufacturers. 

The rising prices have raised some hopes till the Chinese concerns raise their output to offset the gain in prices. 

Oil Uptick The Ripple Strikes Back

The merciful slow down in oil was a big relief for Nations highly dependent on energy imports. The fossil fuel responsible for global warming is here to stay. No matter what progress is being made in alternative fuels oil remains the major source.    

Well it is a simple global demand and supply game as the Oil Market Report portrays.  The increase in production some time back was due to fracking boom in USA, Iraq recovery and production splurge by KSA. Weak economies dithered the upward rise as consumption receded.   

Inspite of Iran sanction being no more and the 700000 mpd addition the upward swing is noticeable. This is due to natural disasters, political uprisings and terrorist sabotage in Nigeria.  The low prices of crude had encouraged usage in many countries as well as by fast developing Nations like India.    

Low prices has also discouraged fracking in the oil fields of Texas in USA. Shale oil production exhibits a catch 22 situation as reduced production in case of low prices would experience an upward swing if prices bounce back sufficiently higher.    

From 33$ to present fifty dollars the crunch is being felt but not so much as it was during high prices over 100$ per barrel.  

Tea Production in India

Tea production in the country is booming with the gross at 1.2 billion kilos. A  large portion of tea is produced by small farmers. The exports have fallen marginally but the local demand is unquenchable.   

In spite of growth of tea production in India the country continues to import tea from many countries. South India, Assam Valley, Darjeeling District,  Terai Region and Dooars are the primary production centers in India. 

The rise in output has taken place in spit of Tamil Nadu and Kerala and rest of South India loosing out in production.  

In order to stabilize production a serious effort has been made to make Indian  tea conform to food safety. A  sustainability code has been established in this regard by the Tea Board of India and stakeholders have been invited to make the program a big success. Quality is the key concern and improvement will lead to better value and higher production as well.  

Dye Manufacturing Key Issues

Dyes are substance or chemicals which impart color to a material. The manufacturing process is complex and at times hazardous. The techniques differ in manufacturing of various dyes. After the invention of synthetic coloring agents many product types have been manufactured for different applications. The process requires synthesizing, filtration, drying and blending with other products and additives. The final product is then ready for use. After synthesis the product is separated using distillation precipitation and then crystallization. After this fishing operations are carried out.

The manufacture releases air pollutants some of them are NO2, SO2, volatile organic compounds and hydrogen chloride. Solid wastage effluents and sludge are also of major concern. Various treatment methodologies are applied to destroy or lessen the presence of toxic elements released during production.

Pollution prevention and control is a must during the process of production. The amount of toxic wastes has to be minimized. Use of alternative dyestuff is recommended instead of azo dyes for textile manufacturers. It is wise to reuse intermediates or by products than throw them. Minimize spillage by using automated filling plants similarly toxic packing material can be sent to the supplier for reuse. Reduce the generation of waste water and discover uses for rejected lots if possible. Replace highly harmful raw materials with bio degradable ones.

Land use for the plant and the neighboring lands should be protected from toxic pollutants and wastes. On instance of accidental release or spillage of toxic substances a prevention and protection plan should be ready. Quality design inputs and maintenance should be implemented in order to minimize toxic emissions. Careful monitoring and control process along with frequent analysis and reporting is a must. 

The complicated process of dye manufacturing in India is highly advanced. The chemical industry produces many dyestuffs and intermediates to facilitate the production locally. The products are slod with India as well as exported to many other countries in the world.