Business Daily from THE HINDU group of publications
Thursday, October 9, 2008
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Business Daily from THE HINDU group of publications Thursday, October 9, 2008 ePaper | Mobile/PDA Version | Audio |
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Update at 1715 hrs (IST)
Industry ‘US turmoil likely to hit steel demand’ NEW DELHI: Steel industry may face a further slow down and could be forced to bring down prices on account of global turmoil in tandem with dip in domestic demand. Industry would be forced to cut down production if the prevailing conditions prevail, indu stry expert said, adding that the growth targets are being revised from double digit to single digit. “The production growth in the steel sector is likely to decline to 8-9 per cent this year from the expected 12-13 per cent due to global economic slowdown,'' JSW Group Chief Financial Officer Sheshagiri Rao told PTI. Indian steel companies would have to cut prices to survive, else market will be flooded with cheaper imports, he said. Globally, steel prices have softened by about $350 per tonne in the last couple of months, the reason why large-scale consumers are he ading for cheaper imports from countries like China and Ukraine. “The global turmoil has affected demands and put pricing pressure in the US. These would have a ripple effect on Indian market too,'' an Essar Group spokesperson said. British steel giant Corus, part of Indian conglomerate Tata group, has already said i t is taking steps to optimise production as per the changing demand scenario. - PTI
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