world of steel A Division of Ellias International




Daanish Ellias

As founder of World of Steel, Daanish has a continual quest and drive for helping businesses grow in the steel using industry. With over 30 years of strategic business management and leadership experience, he is known as a catalyst for change and understands the challenges CEO and Marketing managers face in this extremely volatile environment.. Not surprisingly you will often find him feeding his hunger for life long learning with a good book and latte! This blog is reflection of his passion for the steel industry. He promises to intrigue, challenge and sometimes even question (and praise as well) Government policies for the long term effect they can have on the user industry.


Trust is the lubricant for business and society.
09/06/2016 01:19:22 | Daanish Ellias
Trust is the lubricant for modern business regardless of the inroads that technology may have made. Not surprisingly developed countries especially Scandinavia have a high level of trust in their societies. This is thanks to their Government, consistency of Government policies and transparency

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Thoughts on "Make in India"
31/05/2016 01:19:06 | Daanish Ellias
Each morning as I step out of my car i run into the "Make in India " lion...it is indeed a wonderful morning inspiration for India growth and potential.

However the words "Make in India" seem a little isolationist. So are we going to make everything from a simple clip to micro chips? Are we going to put blinkers and become protectionist (like we have become on steel) and then expect the world to open their markets to us"

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Is it the death knell of SMEs and MSEs in India?
11/05/2016 01:38:00 | Daanish Ellias
Times are exceedingly difficult for the steel user industry particularly in the SME and MSE sector. Thanks to MIP steel supplies have dwindled and prices are sky high making their products and very existence unviable.

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Heads I win, Tails I win
22/01/2016 02:53:59 | Daanish
If you are a steel producer in India, you have the best of both worlds. You take risks in the global market, you go for greenfield and brownfield projects, mergers and acquisitions across the world and when markets turn sour and business plans go awry, you can retreat and seek protection and how....BIS, anti-dumping duty, safe guard duty, port restriction and everything under the sky.. After all, the banks have financed your mega dreams and leveraged you and their NPAs will drag them down. You are not the man on the street running late on a credit card payment or a car loan.

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A unique experience with WOS
22/01/2016 00:34:33 | Daanish Ellias
The onset of May marked the end of my second academic year at Indian Institute of Technology, BHU. Two long years of metallurgical training and still I was clueless when it came to relating the theories taught in the classroom to actual application. An internship was an absolute necessity. However I could not concur with the idea of doing a research intern.

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A headache called "Steel"
24/12/2015 23:54:52 | Daanish Ellias
Steel is making more headlines than perhaps any other Industry in India. Daily there is a barrage of news...cheap steel, dumping and the Government is pitching in with a slew of notifications...BIS, anti-dumping, safe guard duties, MIP (Minimum Import Prices) and the threats continue for port restriction.

The biggest irony is that the steel user industry is larger than the steel producing industry, employs a greater number of people, pays more taxes, generates more foreign exchange. Unfortunately it is more fragmented that the steel producing industry and is less vocal than the producing industry.

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Budget 2014-2015 Highlights
01/04/2015 23:54:29 | Daanish Ellias
Budget 2014-2015 Highlights

1. Royalty rates on minerals to be revised , which was due in 2012
2. Rationalizing Coal linkages and assuring adequate supply to power plants
3. Import duty on all type of Coal rationalized to 2.5% and 2% CVD
4. Import duty on Met Coke imposed to 2.5%

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GREEN SHOOTS FOR STEEL RECOVERY?
10/11/2012 11:32:25 | Daanish Ellias
Is it a mirage or is it real? Are we seeing a steel recovery? There are mixed signs but Chinese price hikes are holding and mills are trying for further increases. The domestic market prices are well above the prices mills can achieve in the export market thanks to the massive economic stimulation from the Chinese Government. Of course Chinese exports are limited with these high prices. The situation is giving a breather to the other regions to pick themselves up and reduce inventories.

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Steel Industry - Need for transformation!
26/10/2012 11:35:35 | Daanish Ellias
It has been a cycle of gloom-boom and again we are getting towards the gloom in the steel industry. Of course last 15 years has seen much changes, one is of course geographical shift to the East and more particularly to China and India. Production has also risen in Latin America and in Europe and USA has declined. So steel production has shifted increasingly to the places of growing consumption while the decline in Europe has been in line with the decline in economies with Turkey being the only bright spot (if it any longer considers itself to be a part of Europe) with its strategic location straddling Europe and Asia and access to the growing Middle East Markets and North Africa.

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Buying Prepainted and Galvanized from China
17/10/2012 00:00:00 | Daanish Ellias
Writing a blog from the spot is always challenging and perhaps even invigorating....nothing like smelling the coffee and writing about it rather than sitting in an airconditioned room and intellectualizing.

I have been visiting Prepainted Steel mills in China. Price differentials are amazing between each mill especially as you go more into the interior. It is of course without question China can produce quality PPGI and other steels but when we beat a mill on price, quality tradeoff comes with the territory.

Fortunately I met a very articulate Chinese Manager (jing li...see I can now speak Manadarin) who eloquently described the processes where price savings are possible.

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Women hold half the sky in China
17/10/2012 00:00:00 | Daanish Ellias
A saying of Mao which is actually practised in China and it is particularly heart warming in our steel industry. What we usually see among men of steel is men drinking (Ok Chinese also drink), smoking and discussions of various prowesses, in China it is replaced by the feminine touch both at the shop floor and of course in sales.

A beautiful (Piao liang) woman explaining the equipment and steel making is certainly more interesting than walking through the plant with a male guide. Steel has never had any sort of appeal (apart from people like us who also dream of steel) but in China there is some beauty along with the steel.

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Experience with World of Steel
03/10/2011 11:36:32 | Daanish Ellias
It was the month of August, when I came to know about the brand World of Steel from my seniors. They had come to Mumbai for some project and told me about the great experiences they had working with Mr. Daanish Ellias and Mr. Gitesh Chavan which in turn motivated me to get in touch with them.

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How far has India come?
21/02/2011 11:37:16 | Daanish Ellias
The recent news of steel centers and marketing offices being opened by Essar in Europe for distribution is a culminations of many small and some big steps taken by the Indian Steel Industry. If one was Rip Van Winkle and had just woken up after a 20 years of snoozing, it would have been extremely hard to digest. Gone are the days of British Steel, Hoogovens, Sollac, Cockerill and so many other steel mills in the developed world. For Indian Mills it has been a journey of audacity.

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Escalating Prices -- A bullwhip effect
14/02/2011 11:37:38 | Daanish Ellias
The recent steel price escalation reflects the classic bull whip effect in the global steel supply chain. Primary reason is the constraint of Coke supplies from Australia due to floods in Queensland. This disruption in Coke has created an exponential cascading effect on the steel supply. It is well above the price increase in Coke. Across the supply chain there is hoarding of steel as mills increase prices leaving the end users scrambling for their purchases.

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Breaking News!!!
14/01/2011 11:39:00 | Daanish Ellias
You probably saw the below article or a similar story in other publication. I just want to comment that I believe there is now no doubt the prices for all steel products are going to continue upwards (perhaps quite rapidly). I donít know if you have been tracking the recent spot prices for HRC, Billets, Scrap, Iron Ore, copper, etc. etc. I believe you will see prices higher by $ 100 p/MT for many flat rolled steel items by monthís end, and then is on top of the already announced price increases for first quarter. It will not be long before mills announce raw material surcharges effective within the next few weeks in order to compensate for their higher costs and force prices upward. It would be prudent to purchase materials as soon as possible, as I predict items will just become more expensive as time passes.

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Chalo Dilli
03/01/2011 11:36:55 | Daanish Ellias
Taking a flight from Delhi`s spanking new Terminal 3 is an experience and the journey truly begins with the Airport train from Shivaji Stadium. The experience is international from beginning to end. The station, the train with the journey progressing on the monitor makes one wish you could spend some more time before arriving at the terminal. Alas it is just about 15 minutes ride. But fortunately the new terminal does not let one down with its spaced check-in counters, ample security scanners, an array of stores and food joints.

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Happy New Year
01/01/2011 11:37:58 | Daanish Ellias
2011 will hopefully bring better tidings across the steel supply chain. The recession wounds are still healing and last thing we need is another jolt. Overall our assessment outlook for steel for the year is moderate. The international prices may go up in the short run especially at the time of the year when the jostling for prices begins. A couple of months of supply tightness is expected as mills try to get their prices and buyers hold back their purchases.

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Location, location, location
03/10/2010 23:50:17 | Daanish Ellias
No question location is the key to any business. It could be a main street, or outskirt of a town or a confluence of roads, rivers or for that matter a port. It can also of course evolve with time.When I was a kid growing up, it was Taloja biryani on the way to Poona (sorry Pune). The NH4 highway put an end to it and just as the expressway has done to many other businesses along the NH4 highway.

Likewise Hong Kong was for for business to China before the mainland Chinese became more enterprising and the country itself opened up.

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Iron Ore price increase bringing the Steel Industry to its knees
28/06/2010 23:48:45 | Daanish Ellias
Our laments about unjustified price increases and their damage to the economy and the steel industry itself have found their echo in the following interview of Thyssenkrupp CEO Ekkehard Schulz:

http://www.spiegel.de/international/business/0,1518,697930,00.html

Do read it. The comments are strident and justified about the 100% price increase on Iron Ore and the damage it will cause to the economy as a whole. Our views are complete in sync. The steel industry is unable to pass these costs as buyers withhold their purchases and users actually find substitutes.

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Yet another steel bubble???
24/06/2010 23:49:57 | Daanish Ellias
It is March 2010 and with the soaring temperatures, steel prices are adding to the global warming along with shipping lines playing games to extract freight increases. Unfortunately, we still live in the world of bullying. It is either the big three in iron ore with an 80% price increase, or the steel producers (some what justified based on raw material inputs) or the shipping lines. In a world where getting 5% price increase requires persuasion, repeated meetings and presentations, some people can actually get these price increase extracted. That too in a world still gasping for breath after the global recession with a slippery recovery and a long hard road ahead to get back to the 2007 levels. Of course there are spots of brightness but these are far and few.

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To Sir, With Love
06/04/2010 11:41:13 | Daanish Ellias
Sidney Poitier and this fantastic movie is more poignant than ever. There is a lot one can crib about the state of education in India but lets also celebrate the islands of excellence in education. The islands are of course our IITs. Certainly a gift to our nation from a great mind....Jawarhal Nehru. What Stanford is to the Silicon Valley, the IITs are to our country`s growth and confidence.

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Steel Recovery: Does it have legs?
31/08/2009 23:53:07 | Daanish Ellias
It is now one year since the Great Crash in steel prices. We have all done our reflections and introspections. Question however remains if we have learned our lessons. The answer to us is NO. Yes the multiple Government stimulus packages have worked to save the economies; "Cash for clunker" have revived auto steel sales. But to us these are temporary measures to save the economies from total collapse and the Governments will soon run out of ammunition for repeated interventions. And it is only real demand not steroid driven demand that can revive steel consumption.

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The Hidden Ingredient In China`s Success In Manufacturing
12/07/2009 23:50:56 | Daanish Ellias
Much can be said about China being the factory of the world. Make no mistake, however, that it is also on its way to becoming a technology and an innovation leader. The ecosystem is there and there is a discipline in its method.

Several things could astonish one about the factories in China. It could be the organization at the floor level at even mid-sized factories or they being spotlessly clean or their innovative loading and unloading facilities or their simple yet effective solution to problems.

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BIS Certification --- Update
19/02/2009 23:53:45 | Daanish Ellias
The Indian authorities have taken a measured and thoughtful approach. They have worked with the steel community in understanding the industry and the implications of BIS standards

Lets hope Foreign manufacturers` international standards (Japanese, EU, Korean standards are also extremely stringent and accepted globally) are accepted in lieu of BIS standards. The application process is simplified and the cost scaled down considerably. For the sake of the industry as whole a level playing field must be maintained and the steel user industry must get competitive prices and specifications/steel unavailable in India..

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Steel Exchanges
17/02/2009 23:53:29 | Daanish Ellias
A promised potential that has never quite taken off. In 2000 it seemed steel would turn virtual but the dot com bust made a reality check. Since then there have been several efforts to revive some of these ideas and a few with a possible success.

We have not been able to take a firm position. It sure sounds doable and great on paper and even when programmed. It may have benefits to even out the volatility in steel. It may make steel trading more efficient.

The downside seems as negative and daunting.

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BIS Certification
31/12/2008 23:54:05 | Daanish Ellias
It`s Here .....BIS Certification For Steel In India

This is a topic that one can call glocal. Today it is India, tomorrow it could be anywhere else in the world. And it does have implications for steel exporters across the globe.

Is the legislation "Stealth protectionism" or is it an "Enlightened legislation"? The answer is not simple. In all fairness the legislation needs to be studied in depth and passing simplistic judgements will not help.

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