You are here: Home » Companies » News
Business Standard

SAIL's share of domestic steel consumption falling since FY14

The PSU produced 13.6 MT, 13.9 MT and 14.3 MT steel in 2013-14, 2014-15 and 2015-16

Press Trust of India  |  New Delhi 

SAIL's share of domestic steel consumption falling since FY14

Steel behemoth SAIL's market share in domestic consumption has been declining since 2013-14, Parliament was informed on Monday.

India consumed 6.8 million tonnes (MT) of the metal in 2013-14, 7.02 MT in 2014-15 and 7.27 MT in 2015-16, according to the data presented by Steel Minister Chaudhary Birendra Singh in a written reply in Lok Sabha.

Of the total demand, the 'Maharatna' firm accounted for 1 MT (14.8%) in 2013-14, 96.71 lakh tonnes (13.8%) in 2014-15 and 1.01 MT (13.9%) in 2015-16, the data showed.

The public sector undertaking (PSU) produced 13.6 MT, 13.9 MT and 14.3 MT steel in 2013-14, 2014-15 and 2015-16 financial years.

India is the third-largest steel producer in the world with a production capacity of 118.20 MT as on March 31, 2016.

On the decline in SAIL's share, Singh said that during 2014-15 and 2015-16, there has been a huge increase in import of steel by 75% and 27%, respectively, which has resulted in sharp decline of domestic steel prices.

"Declining prices have led to lower sales realisation for domestic steel producers, including The fall in prices have led to cash deficit in the company, which is being met by by way of borrowings from banks and debt market," he added.

The Indian steel industry is currently passing through a severe downturn due to dumping of products and predatory pricing by global steel players with excess capacity, the Minister said.

"Government has taken various corrective steps to address the problems faced by the domestic steel sector and to provide level playing field to the domestic steel producers," he added.

First Published: Mon, July 18 2016. 16:23 IST
RECOMMENDED FOR YOU