Homeeconomy news

India steel cos can cash-in on global steel shortage due to Russia-Ukraine war: TV Narendran

economy | IST

India steel cos can cash-in on global steel shortage due to Russia-Ukraine war: TV Narendran


“The biggest exporters of steel in the world are countries like Japan, Korea and China – who don’t have the raw materials. So there is no reason why India with its raw materials cannot be a big exporter of steel just like Russia and Ukraine,” CII President TV Narendran said.

The Confederation of Indian Industry (CII) president and Tata Steel CEO, TV Narendran, believes that business sentiment continues to remain positive on the back of a decent recovery post the COVID-19 lockdowns being lifted but he has cautioned about rising raw material costs and higher commodity prices in the short term.
"15 percent of steel that is produced in India is exported. 85 percent is for the domestic market and the domestic demand is strong because of infrastructure investments. Pretty much all steel companies have announced expansion plans and there is almost Rs 100,000 crore of private sector investment being made in India in expansion by the steel companies," he said.
The Russia-Ukraine war, according to the CII president has pulled out nearly 45 million tonnes of steel from global markets and the Indian steel makers thus have a chance to leverage this opportunity. He doesn’t expect any further hike in steel prices and feels it should stabilise at higher levels.
“Steel prices have pretty much stabilized and have certainly seen the peak, but we will keep fluctuating at slightly higher levels than we have seen traditionally in the past,” he said.
Supply concerns and a surge in input costs have pushed inflation to 6.95 percent, which has breached the Reserve Bank of India’s (RBI) target for the third straight month.
There has been an activity pickup seen in the high contact sectors as well and that augurs well for the steel companies.
“In last month we had about 10 million passengers in the airlines, the hotels are picking up, hopefully with travel improving, tourism will start getting an impetus. So we are seeing some of the factors which impacted consumption are also getting addressed,” he said.
For the full interview, watch the accompanying video
Catch all stock market updates here