Steelmakers moving up value chain for better margins

Mumbai : India’s top three steelmakers — SAIL, JSW Steel and Tata Steel — have decided to move up the value chain. To achieve the goal, the three have exited, or are on the verge of exiting, the production of semi-finished steel products.

The steelmakers don’t see a reason why they should not graduate to making higher grades of steel. After all, value-added steel gives them better margins, which in turn, boosts profitability in the same production capacities.

Earlier, some portion of their semi-finished steel was sold in the market, but now they are looking at dowsntream, as the margins are high. So, they are not selling it in the market but using all of the semi steel to make finished steel.