Steel manufacturers shift focus to domestic mkt
The Financial Express, May 11, 2009, Page 4
Smita Joshi Saha, Mumbai
With correction of about 60% in the global steel prices due to the economic slowdown, Indian steel players have cut down on their exports and are now completely focusing on growing domestic sales, say industry players.
Steel manufacturers like JSW Steel, Essar Steel and Ispat Industries have confirmed of their focus on the domestic market as exports take a back seat.
Sajjan Jindal, vice-chairman and MD of JSW Steel, while announcing the company’s fourth quarter results said, “The company will reduce its exports to 13% in FY10 from 18% in FY09 and 40% in FY08.” Jindal also sees JSW’s saleable steel going up by 78% to 6.1 million tonne in FY10 and output going up by 72% at 6.4 million tonne in FY10.
Similarly, Ispat Industries’ exports have also remained just minimal from about 13% two year back, agrees Anil Surekha, director—finance, Ispat Industries Ltd.
Declining to give specifics, an Essar steel spokesperson confirmed that the company’s exports have gone down considerably. Globally steel demand is expected to dip by 15%. However, steel demand in India is expected to grow, with World Steel Association predicting that only India will be in a positive growth zone in 2009 at 2%.
According to World Steel Association data, steel demand in China, is seen falling 5% as the ongoing global economic crisis hits the country’s exports. Demand for the metal, used in the construction and automotive industries, is seen falling 36.6 % in the US and 28.8 % in the European Union.
Meanwhile, as the domestic demand in India is growing with improvements in construction and slight improvement in automotive segment, domestic steel players fear dumping of the commodity in India by overseas companies, which would impact the domestic industry.
Steel makers are of the view that there would be avalanche of imports in the coming months as there is generally a time lag of 2-3 months between the import bookings and arrivals.
Hence, domestic steel majors have asked the government to impose safeguard duty on cheap imports of a key steel products, which has started affecting the sector.
The Financial Express, May 11, 2009, Page 4
Smita Joshi Saha, Mumbai
With correction of about 60% in the global steel prices due to the economic slowdown, Indian steel players have cut down on their exports and are now completely focusing on growing domestic sales, say industry players.
Steel manufacturers like JSW Steel, Essar Steel and Ispat Industries have confirmed of their focus on the domestic market as exports take a back seat.
Sajjan Jindal, vice-chairman and MD of JSW Steel, while announcing the company’s fourth quarter results said, “The company will reduce its exports to 13% in FY10 from 18% in FY09 and 40% in FY08.” Jindal also sees JSW’s saleable steel going up by 78% to 6.1 million tonne in FY10 and output going up by 72% at 6.4 million tonne in FY10.
Similarly, Ispat Industries’ exports have also remained just minimal from about 13% two year back, agrees Anil Surekha, director—finance, Ispat Industries Ltd.
Declining to give specifics, an Essar steel spokesperson confirmed that the company’s exports have gone down considerably. Globally steel demand is expected to dip by 15%. However, steel demand in India is expected to grow, with World Steel Association predicting that only India will be in a positive growth zone in 2009 at 2%.
According to World Steel Association data, steel demand in China, is seen falling 5% as the ongoing global economic crisis hits the country’s exports. Demand for the metal, used in the construction and automotive industries, is seen falling 36.6 % in the US and 28.8 % in the European Union.
Meanwhile, as the domestic demand in India is growing with improvements in construction and slight improvement in automotive segment, domestic steel players fear dumping of the commodity in India by overseas companies, which would impact the domestic industry.
Steel makers are of the view that there would be avalanche of imports in the coming months as there is generally a time lag of 2-3 months between the import bookings and arrivals.
Hence, domestic steel majors have asked the government to impose safeguard duty on cheap imports of a key steel products, which has started affecting the sector.
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