India’s steel giant, Tata Steel is likely to ramp up its production capacity despite fall in steel prices.
Tata Steel is planning to expand its steel production soon despite viewing falling trend of steel prices in global market. The government is supporting MIP policy to prevent the cheaper import but still market is not favourable for steel industry.
The company is expanding its production capacity by upto 3 MnT at its plant in Kalinganagar, Odisha in FY17; aiming to become the low cost producer to compete with international steel market.
Earlier in September, the company had already finished first phase of its Kalinganagar unit in Odisha with the production capacity of 3 MnT.
Meanwhile, steel prices have been volatile in the international market due to increase in excess steel production, which needs to control shortly. Global steel prices are falling constantly, which reflected with a marginal strength during Feb-Apr’16.
The Indian government had imposed MIP on 173 items of imported steel products for 6 months; also USA is charged with 500% MIP on steel import.
However, the chairman person Mr. Narendran is favouring MIP on steel products in order to prevent cheaper imports and to promote more revenue generation.
Moreover, additional production capacity by Tata Steel does not seems favourable for the Indian steel industry on the grounds of oversupplied global market, which is already struggling with subdued demand.
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