by admin | May 25, 2021 | Business, Large Enterprise
Kolkata : (IANS) Implementation of minimum import price on 173 steel items, with an aim to stop imports, has given some relief to the industry, Tata Steel managing director T.V. Narendran said on Thursday.
“It has given some relief to the industry. There is some stability in the domestic markets as international prices have gone up by 15 percent in the last two-three months. I would say the worst is behind us,” he said when asked how the industry is shaping up after the implementation of the MIP.
“We are all waiting to see what is happening in China as prices of steel there went up significantly in the last few weeks,” he said on the sidelines of the annual eastern regional meeting of Confederation of Indian Industry.
He declined to make any forward-looking statement on the domestic steel prices but said the budget focusing on agricultural growth could help in pushing up the demand in the country.
“Rural demand has been a bit slow in the last two years but the agriculture-focused budget can create more demand,” Narendran said.
“The automobile business is looking a bit better. We are hoping that the consumption- led growth will be there after the pay commission announcements. Hopefully, this year would be better than the last year from the demand perspective.”
“We expect 5-7 percent growth in domestic demand. And there is enough domestic capacity to meet the demand,” the Tata Steel official said.
Tata Steel’s capacity of producing flat products will be 10 million tonnes per annum, including production in its Jamshedpur plant and after the commissioning of the first phase of the Kalinganagar plant in Odisha.
The company has three million tonne capacity in long products in India. “Another three million tonnes of long products can be made available in the country from our south-east Asian operations if the prices are competitive.”
Last year, the company had brought two lakh tonnes of steel from south-east Asia to India, he said.
by admin | May 25, 2021 | Economy, News
Kolkata : (IANS) India’s steel exports fell by 31.9 percent in the first 11 months of current fiscal 2015-16 compared to same period last year and exports in February 2016 declined by 25.6 percent compared to corresponding month last year, according to provisional data released by the steel ministry.
“Export of total finished steel was down by 31.9 percent in April-February 2015-16 compared to same period of last year. Exports in February 2016 increased by 21.5 percent compared to January 2016 and decreased by 25.6 percent compared to February 2015,” said a report by the ministry’s Joint Plant Committee.
Institute of Steel Development & Growth director general Sushim Banerjee told IANS that exports fell “due to a muted world market”.
“World prices have been very low and internal demand in many of the countries has shrunk. When the exports figures were taken into account, global prices were going through a bearish trend.
“Some of the global producers are even compelled to sell at a price which is lower than their cost of production. In order to sustain their capacities, global producers are exporting even at a loss,” he said.
“India’s steel sector is competitive in terms of cost of production. But some of factors like high freight cost (transporting steel from plant to port) along with taxes are playing a critical role in terms of exports. Country’s steel makers are now eyeing domestic market,” said Banerjee.
India’s total steel consumption in February (2016) grew by 4.7 percent compared to same month last year.
“For the last seven days, global prices are showing signs to go up. Exports situation are expected to be improved by April or May if global prices go up further,” he said.
At the same time, imports are also likely to fall in the coming months due to imposition of safe guard duty and minimum import prices, he said.
Meanwhile, the report said that imports in February 2016 fell by 7.3 percent compared to February 2015 and India was a net importer of total finished steel in the current fiscal so far.
Import of total finished steel at 10.215 mt in April-February 2015-16 saw a growth of 20.5 percent compared to same period of last year, it said.
