Uncertainty of steel prices notwithstanding, Tata Steel aims to ramp up production at the Kalinganagar unit in Odisha “quickly”, the company’s MD, TV Narendran said.

The company has already commissioned the first phase of the Kalinganagar unit having an annual capacity of 3 million tonne. (Another 3 million tonne will be added in the second phase of the project.)

“We are not slowing up the Kalinganagar project,” he said on the sidelines of a healthcare summit organised by the Confederation of Indian Industry (CII).

Narendran, who is also the Chairman of the eastern regional chapter of CII further said: “We are ramping up very quickly. In steel industry, there is always excess capacity. Our job is to be competitive and be one of the low cost producers of steel in the world which we are. And if we are competitive and we have a good in the market, we should be able to sell our produce.”

Price volatility

According to him, the steel industry is reeling under price volatility. The reason for this he maintains is price volatility for steel in the international market.

While between February and April prices went up; it again came down for another two months and is seen “creeping up” again.

“Steel industry continues to be volatile. Till the world learns to deal with excess capacity; and China takes care of its extra capacity, we will have to deal with this volatility,” Narendran said.

Minimum Import Price

Speaking on behalf of the steel industry, Narendran pointed out that the imposition of minimum import price (in order to stop cheap imports of steel) “should continue”. “As an industry we should always say that it (MIP) should continue,” he said.

In February this year, the Centre imposed a MIP on import of 173 steel items for six months.

“From the steel industry point of view, the MIP has been useful. The government is evaluating it. There are different views from different end-use industries. Steel industry feels, the kind of investments we have made in the country, it (MIP) is something useful to have,” he said.

Batting for continuing with MIP, Narendran pointed out that India is no different from many other countries including the USA. The USA, he claimed had imposed 500 per cent MIP on steel imports into the country.

“The world is dealing with excess capacity in some markets where steel is not being sold according to market economy factors,” he added.

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