Indian steel companies expect that the country’s domestic consumption is likely to grow by at least by 8 to 9 percent in 2012-13, reports Business Line.
The government-owned Steel Authority of India Ltd (SAIL) and private sector Tata Steel Limited have expressed similar views regarding domestic steel consumption.
The newspaper report quoted SAIL Chairman C.S. Verma as saying that production is likely to grow by 7-8 percent. While speaking to media on the sidelines of Steel Summit 2012, in New Delhi, Verma said that demand is very good.
SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanized sheets, electrical sheets, structurals, railway products, plates, bars and rods, stainless steel and other alloy steels.
SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials, including the company’s iron ore, limestone and dolomite mines.
Earlier last month, Tata Steel had also announced that India’s steel demand is likely to grow at 8 percent in the current financial year.
The company’s managing director, H.N. Nerurkar, was quoted by media reports as saying that the company plans to produce about one million metric tons more of steel this year to around 8 million tons on expanded capacity at the Jamshedpur plant.
Based on the GDP growth forecast of 7 percent, the normal demand for steel should be around 9 percent. However, going by the pace of investments in infrastructure projects last year, “we expect growth in steel demand at around 8 percent,” Nerurkar was quoted as saying.
The privately run Tata Steel is a top ten global steelmaker and the world’s second-most geographically diversified steel producer.
Tata Steel is part of the Tata Group, India’s largest industrial conglomerate. Since 2004, the company has expanded globally, acquiring Asian steel producers NatSteel and Millennium Steel (now called Tata Steel Thailand) as well as Europe’s second-largest steel producer Corus (now called Tata Steel Europe Limited).
To be continued in Part Two.