Rashtriya Ispat Nigam Limited (RINL), with a strong current focus on the robust domestic market, has increased its December sales target by almost 20% month-on-month (m-o-m) to 5 lakh tonnes over November’s 4.17 lakh tonnes, sources informed SteelMint.
Within this 5 lakh tonnes, the overwhelming share will be diverted towards domestic sales, with exports kept at around 60,000 tonnes. This export volume comprises overseas sales commitments made in October-November, which will end in December, it is learnt.
The steel PSU’s November sales, which were up 25% m-o-m over October’s 3.33 lakh tonnes, had an exports share of 1.3 lakh tonnes. October’s export component was 0.7 lakh tonnes.
Production
With all the three blast furnaces running, RINL increased its November liquid steel production by 15% m-o-m to 4.5 lakh tonnes from 3.9 lakh tonnes in October.
Inventory
With domestic demand overshooting supply, the PSU steel major has been able to lower its inventory by around -18.75% as on November 31 to 1.3 lakh tonnes over 1.6 lakh tonnes in the previous month of October.
After a period of struggling to stay afloat with exports during the Covid-19 lockdown, steel mills are now seeing a surge in domestic demand, thanks to a momentum gained in infrastructure and construction sectors of late with the central government awarding several new projects and states resuming existing ones as well.
— by Madhumita Mookerji
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