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Last Updated: 10/21/2024 11:59:00 PM
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Steel prices unlikely to go up in domestic market
Tata Sons today said domestic steel prices is not likely to go up but the pressure on margins is likely to continue due to higher input costs. "Even if the input costs are high, steel producers cannot raise prices as there is a surplus of steel in the international market, which will lead to imports," company's Director JJ Irani said while speaking at a function in Jajpur, Odisha. However, he said, the pressure on the margins is likely to continue for some time.
Mr. Irani added that the high input prices will not sustain and producers of coking coal and iron ore are likely to soften the prices in another six months, particularly of iron ore. Tata Steel is likely to increase its capacity by 6 million tonnes (MT) in India in next five years, he said. "Presently our installed capacity is 10 MT per annum (MTPA) at the Jamshedpur facility and with our Odisha project, which is likely begin this year, increase the capacity by another few million taking the total to about 16 MT in the next five years," he said.
Tata Steel has a Rs 2,300-crore greenfield project in Kalinganagar in Odisha.
The company had signed an MoU with the Odisha government way back in November, 2004 for setting up a 6-MTPA integrated steel plant at the Kalinganagar Industrial Complex in Jajpur district of the state. The domestic steel major produced 6.85 MT in FY11 at its Jamshedpur facility.
Considered as the world's second most geographically diversified steel producer with presence in 26 countries, Tata Steel Group is among the top 10 global steel companies, with an annual crude steel making capacity of over 28 MT.
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