Steel industry to see better days, worst behind us: Tata Steel

Referring to steel prices, Narendran said he did not wish to predict their range for the next few months, but said domestic steel price was still lower than minimum import price (MIP) imposed by the government in February.

The steel industry is likely to see good days ahead as the "worst is behind us", Tata Steel India Managing Director T V Narendran said today.

"The worst is behind us," Narendran said on the sidelines of CII's annual regional conference here.

Referring to steel prices, Narendran said he did not wish to predict their range for the next few months, but said domestic steel price was still lower than minimum import price (MIP) imposed by the government in February.

In the recent past, domestic price was up by Rs 3,000 and international steel prices had also moved up by 15 percent, he said.

Rural focus in Budget and the Seventh Pay Commission recommendations will fuel domestic demand, he said.

Narendran said domestic steel makers were following the developments in China.

Speaking about Tata Steel Kalinganagar, he said the company was currently focussing on stabilising the first phase of three million tonnes capacity. Depending on cash flows and current demand, plan for additional three million tonnes second phase would be carried out.

Taking into account the first phase of Kalinganagar project, the total flat capacity would get ramped up to 10 million tonnes.

But the long capacity would remain at three million tonnes and the company could import from its three million tonnes South East Asia unit.

Narendran said Gopalpur ferro alloy plant would commence operations in the next quarter.