Soma Mondal, Chairman of SAIL, on Wednesday said that global steel prices are at decade highs due to supply-side constraints, demand pickup, and the iron ore supply constraints.
“Steel prices are the highest in the decade and there are three reasons for it. One is there has been a supply-side constraint where post-COVID and even the first, second, and third phase of COVID, the wrapping up of production in many parts of the world has not happened to the degree it should. Also, China has some policy of reducing inefficient production capacities.”
“Second is the demand pickup. Globally, the auto sector demand picked up and the thrust of various governments on the infrastructure push has also helped in an increase in demand. Thirdly, the raw material -- the iron ore supply constraints.”
“So this is there and I think it would remain for some time in the near future. So, I expect the prices would remain strong in the next quarter or two,” she said in an interview with CNBC-TV18.
Mondal said as a company they are increasing production to cater to higher demand. She also said that in FY22, the thrust will be on increasing finished steel products.
“We have reached Q3 production level in the month of March which is quite significant and our thrust would be to consolidate that and also increase the finished steel basket,” she said.
She added that the company continues to emphasis on debt reduction, but difficult to give an exact debt reduction plan.Watch the video for more.