The Hindu Business Line : Inventory builds up at steel cos

Steel Authority of India Ltd (SAIL) is currently holding a stock of nearly one million tonnes of finished goods in its various plants and warehouses across the country.

At the plant level, the stock is about 1.45 lakh tonnes, comprising 63,000 tonnes at Bokaro, 44,000 tonnes at Bhilai, 23,000 tonnes at Rourkela, 12,000 tonnes at Durgapur and 3,000 tonnes at IISCO. It might be noted that Bhilai and Durgapur plants mainly produce long products and Rourkela and Bokaro flat products. The bulk of the stock comprises long products and hot-rolled products.

At the warehouses, the stock will be about 8.54 lakh tonnes. The company has a total of 67 warehouses. The 23 warehouses in the eastern region are holding a stock of about 1.59 lakh tonnes, 16 in the northern region have 3.14 lakh tonnes, 17 in the western region, 2.33 lakh tonnes; and 11 in the southern region, 1.48 lakh tonnes.

In October, SAIL’s total production of saleable steel was 9.9 lakh tonnes. In other words, the stockpile amounts to one month’s production.

Rashtriya Ispat Nigam Ltd, producing steel – all long products – in its Visakhapatnam plant, is currently holding about 6.6 lakh tonnes. The stock, being held mostly in its 23 stockyards and some in the plant and others in transit, is equivalent to two-and-half-month’s production.

Tata Steel, it is learnt, is holding 15 days’ production of the Jamshedpur plant as stock. The Jamshedpur plant produces about 20,000 tonnes a day, comprising 40 per cent long products and the balance 60 per cent flat products. The stock has been built up mostly in long products, it is further learnt.

Related Stories:
Output cuts may slash volumes for steel cos
Steel Ministry for re-imposition of import duty
SAIL cuts prices by Rs 4,000-6,000/t

More Stories on : Steel | Steel | Steel Authority of India Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
‘Low’ becomes well marked over Bay

Inflation rate drops to lowest in six months

Fall in dollar assets only part of the story

Real effective exchange rate of rupee declines

‘High cost of funds will hurt infrastructure projects’

Indian crude basket likely to fall below $50 a barrel

BHEL plans to tie up with L&T for new nuclear orders

Inventory builds up at steel cos

Thermax (Rs 280): Sell

Day Trading Guide

IT majors prefer to stay ‘liquid’

Pension option: Actuaries’ report lifts staff hopes

PM seeks strengthening of IMF, World Bank

Panel calls for repo in corporate bonds