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The Essar Group is looking to invest USD 4 billion in setting up an integrated flat steelworks plant in Saudi Arabia in the next three years, a senior company official said. The plant, which will cost Saudi Riyal 15 billion (USD 4 billion), is scheduled to break ground by this year-end and be completed by the end of 2025, said Amar Kapadia, general manager for corporate planning at Essar.

It’s a tale of contrasting fortunes in the Indian steel industry since last month’s revision of import and export duties on key raw materials and finished goods.

Ratings agency NSE 1.00 % on Thursday said it has revised its outlook on the domestic steel to stable from positive, mainly on the account mounting input cost amid low steel rates.

"As per the provisional figures of the Indian Bureau of Mines (IBM), production level of important minerals in April includes coal at 665 lakh tonnes, lignite 40 lakh tonnes, natural gas (utilised) 2,748 million cubic metre, petroleum (crude) 25 lakh tonnes and bauxite 2,054 thousand tonnes.

Tata Steel NSE 2.77 % has unveiled a 7-million pound investment plan for its Hartlepool Tube Mill in north-east England that the Indian steel major says will cut carbon emissions, improve capacity and reduce costs to strengthen its UK business.

At the current price range, the industry expert said, the cost of coking coal alone in steel making is around Rs 28,000 to Rs 30,000 per tonne, which works to about 40-45 per cent of the production cost. Besides, there are other input materials like iron ore, ferroalloys, logistics, fuel costs and other fixed costs.

"WCL is on an aggressive roadmap towards strengthening its water infrastructure portfolio both in India and globally. The receipt of this new contract by our associate company, EPIC, is a testament to that, as we continue to solidify our leadership position in the Saudi market," company's MD & CEO Vipul Mathur said.

The Indian government levied a 15% export duty on steel 21 May in a bid to increase supply for domestic consumer industries and tame inflation. A steep export duty was also levied on iron ore while import duties were cut on inputs like coal to reduce the cost of production for steelmakers

The mines ministry has proposed to do away with the requirement of obtaining forest clearance for exploration of mineral blocks, a move that would lead to auction of more mines and augment the country's mineral output.

Steel prices in India had already corrected 10% in line with global trends when the government surprised the industry with a 15% export levy, said Dilip Oommen, president of the Indian Steel Association, an association representing steelmakers.