Steel prices have bottomed: Tata

Agencies
Posted: Wednesday, Dec 10, 2008 at 1625 hrs IST
Updated: Wednesday, Dec 10, 2008 at 1625 hrs IST

Font Size

Feedback

Discuss

Posco project may kick start by Jan ArcelorMittal eyes new sites for steel plants Tata Steel sales up 25% in Aug

New Delhi: Tata Group holding company Tata Sons on Wednesday said it anticipates steel demand picking up only next year and does not expect the price of the commodity to fall further, amid steel makers resorting to production cuts.

"(The) steel outlook is depressing for the next 3-6 months. I see steel demand picking up only in 2009. Prices are already low, I do not think they can go down further because raw material prices are still high," Tata Sons Director J J Irani said on the sidelines of a conference in New Delhi.

He said that steel manufacturers worldwide have resorted to production cuts and that has helped tame the falling demand and halt price decline.

Demand for steel and its prices have declined of late due to the global economic downturn.

Globally, steel prices have almost halved from the peak of USD 1,200 per tonne earlier this year.

"India cannot be decoupled (from) the international market. Steel prices in the domestic market are down as compared to the rates prevailing earlier this year," he said.

Regarding cost-cutting measures of firms, Irani said that if business houses witness fall in profits, under pressure they have to adopt measures to remain efficient.

"Every ten years, people (corporates) have to go through a slimming exercise... not only in manpower but wherever they have put their money," he said.

Post Comments

Comments: (Limit 3,000 characters)

Name		Message
Email ID
Subject

TERMS OF USE:
The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).

I agree to the terms of use.