Government infra push to boost steel demand
The central government\'s focus on infrastructure and urbanization plan would boost the demand for steel, which is currently low in the country, Tata Steel Managing Director (India and South East Asia) T V Narendran said on Friday.
Jamshedpur: The central government's focus on infrastructure and urbanization plan would boost the demand for steel, which is currently low in the country, Tata Steel Managing Director (India and South East Asia) T V Narendran said on Friday.
The demand for steel in the country is poised to grow as the market demand is positive due to government initiatives to invest in infrastructure, airport, road and its urbanisation plans like smart cities, Narendran added.
India has the capability to grow by 7 to 8 per cent, he said and expressed confidence that demand for more investments in infrastructure, airport, road and the government's urbanization plan would help grow the demand for steel. However, the steel sector is in doldrums across the globe including China and the situation has come to such an extent that many companies in the sector across the world are unable to pay salaries to their employees, while most others are losing money.
Speaking on the occasion of New Year, Narendran said the prices of steel have come down to 2003 levels, but claimed that Tata Steel continued to perform well despite the conditions and has remained profitable. "Prices of steel are not in our hand. It is because of the commitment of our employees, who worked hard to achieve the target, that we have remained profitable but the situation has affected the margins," he said. It has continued to produce at low cost like the Russian steel sector, which was at an advantage due to appreciation in their currency.