Steel prices likely to go up further due to weakening of rupee: Essar Steel

Price of steel has gone up and it could go up further depending on the dollar, says Dilip Oommen, MD and CEO, Essar Steel

Steel prices are likely to go up further due to weakening of rupee, a top official of Essar Steel said here today.

"With dollar appreciating, there will be cost push. The price of steel has gone up and it could go up further depending on the dollar", Dilip Oommen, Managing Director and CEO, Essar Steel told reporters here.

He said the slowdown had affected sales in the industry. The growth rate, which was seven % 3-4 years ago is now about 3.5%, he said.

'Things are looking better in US and Europe and prices in China and Japan have started moving up. The growth of steel industry and economy go hand in hand', he added.

The company was eyeing an export target of 1.4 million tonnes of steel this year. Last year, it had exported 1.2 million tonnes, mainly to Europe and Africa.

Stressing the need to increase consumption, he said per capita consumption of steel in India was only 55 kg against the world average of 200 kg, adding, "if India has to progress, our focus should be on infrastructure and industrial development."

Referring to the Food Security Bill, he said it would be a 'bonanza' for the steel industry as more storage facilities would be needed.

The company today launched high quality colour coated products, especially developed for the Kerala, which can withstand extreme weather. These products will largely be used in the housing and industrial resorts segment in the region and includes roofing and wood finished steel products.

Oommen said the company, aiming Rs 140 crore annual revenue from Kerala, is keen to partner the state government in various infrastructure projects, including Kochi Metro.

"Government policies should be conducive to investment. Consistencies in policies are very important', he said.

Kerala is emerging as a major steel consumer with a lot of infrastructure development, real estate development, medical tourism, among others, he added.