US has threatened action against Japan, Korea as also other Asian countries. EU is also worried that US action would attack the maximum number of producers all over the world.

This may hurt Indian producers who were finding US a growing market. The world scene for steel and other products is gloomy. CIS pig iron is selling at $100 fob. Bisllet is between $150 to 160 per tonne fob. Shredded scrap is $82 to $85 per tonne fob. In Brazil, of 74 merchant blast furnaces producing pig iron, 47 have closed down.

Some of the excess Russian material may find its way into India. US treats CIS as non market economy and now wants to do the same to Korea. While in India the government is thinking of some action against non market economy exports, other countries act swift to protect their industries. All the US steel majors have joined UnitedSteelworkers of America to launch a national campaign aimed at obtaining relief from flood of cheap imports.

According to industry sources, net imports of steel mill products for the first six months of the 1998 totalled 18.2 million tonnes -- a rise of 12.4 per cent over 1997 first six months. Net imports were expected to be 36 million tonnes in 1998 compared with 25 million tonnes in 1997.

Japanese exports to the US have increased by 113 per cent and Japan intends to cut down on exports to US fearing anti dumping action. Japanese steel production has been falling and is likely to reach a historical low of last 27 years for the year ending March 1999.

Meanwhile, one cold rolling mill of one million tonnes is due to be commissioned in Thailand by November 1998, worsening the competition. Sun United is a joint venture between Japanese steel majors and Thais which was to supply CR coil for electricals, autos and tin mill black plate to Japan. It would roll sheet from 0.18 mm to 1.6 mm width and 700 to1300 mm width.

Nippon Steel and Kawasaki were to supply the hot rolled coil and take back the cold rolled products to Japan but now with the Japanese market falling most of the product would be exported to other countries. The mill is likely to produce about 250,000 tonnes during the first year and reach one million tonnes during the second year of operations.

By the time Tatas cold rolling mill is commissioned, it will have a brand new mill operating in the region. Meanwhile, South Korea is due to start its first steel service centre in India near Chennai to cater to the Korean auto plants coming up in India.

Known as PSO-Hyundai Steel Manufacturing India Ltd, the $10.25 million steel centre will be completed by end September 98. It will handle about 58,000 tonnes of sheets and 42,000 tonnes of skelp. This is a joint venture between three Korean companies Posteel 19.5 per cent, Hyundai 70.5 per cent and Posco 10 per cent. They will sell their finished products to local companies.

While the steelindustry the world over acts to protect its markets, the Indian steel industry has been going down steadily. Reports indicate that even Tisco will see a steep fall in its profits during 1998-99 and its share price will tumble, which is already at vary low levels. TISCO's profit is expected to slide to only Rs 103 crore against Rs 322 crore of 1997-98.

SAIL is expected to loose in 1998-99 Rs 466 crore against a profit Rs 133 crore in 1997-98. However, IDBI has told SAIL that it would loose between Rs 800 to Rs 900 crore.

SAIL had a conclave of its top officials during the first week of September and according to reports will save Rs 1300 crore from its operational costs in 1998-99 leaving a operational surplus of Rs 500 crore. Since SAIL during the last two years has saved about Rs 1800 crore, the total savings in three years of arises are Rs 3100 crore, which is one fourth of the total turnover of the company and also must be record of sorts.