Tata Steel Expecting an Increase in Demand of Steel Inspite of Inflation

Mumbai : Managing director of Tata Steel, H R Nerurkar revealed emergence of inflation was not going to affect the demand of steel in India. The demand for steel in India increased by 9.9% in 2010-11 to reach to over 65 MT. the 105 growth in the demand was reasonable with an overall increase in the gross domestic production of 8%.

According to Joint Plant Committee, India's consumption of steel in April this year was at 5.030 million tonnes, up 1.8% over the same month last year. The company was expecting a rise of two-third in the rate of its operating profit from its European centre which was $100 a metric ton these days. The company earned an excess of $60 per ton ahead of interest, tax, depreciation and amortization at present and assumptions of the profit were being made on the availability of raw material and market flow in Europe.

The director of the company revealed that there was no chance of decline in the prices of the steel in India for next three months. He further added that the demand were instead going to increase by 10.4%-10.5% a year, mainly due to consumption by the construction industry as both the private sector and the government makes large investments in infrastructure development.