Tata Steel Ltd’s Managing Director T V Narendran feels that steel prices appear to have bottomed out in India and the country’s demand for the commodity will grow by at least 6% in 2016-17.
“If I look at 2016, firstly, I hope and think prices seem to have hit the bottom. At least during the last 2-3 weeks we are seeing some stability in prices in China and in international prices,” Narendran told reporters after the inauguration of a new office of the Indian Iron and Steel Sector Skill Council in Kolkata on January 7.
“But I am more positive about demand. I think, demand, particularly in India, is forecast to grow. The World Steel Association has also forecasted that demand will grow in India and also in SE Asia and other countries like Mexico, Turkey etc. But at least in this region, India and South East Asia, demand is expected to grow by 6-8,” he said.
Narendran’s optimism about growth in Indian steel demand in 2016 comes from the fact that, in India, the government is continuing to focus on infrastructure and has also announced some big projects like smart cities and things like that.
“In summary, demand wise, I am more positive about 2016 and hopefully prices will also be not as bad as they were in 2015,” the Tata Steel MD said.
He, however, said, at present the steel industry in India is passing through a difficult phase and 2015 was particularly a bad year because things slowed down in China and that led to lot of steel coming out of China to India as well as in the international markets.
“So in India and everywhere in the world, steel prices dropped by about $200 per ton during the year and went back to the levels last seen in 2003,” Narendran said.
Source: ISMW