India only country witnessing growth in steel consumption: Madhusudan

08 October, Hyderabad

India is the only country witnessing growth in steel consumption, Rashtriya Ispat Nigam Limited (RINL) CMD P Madhusudan said.

Talking to newsmen on the sidelines of a programme, Mr Madhusudan said, apart from the general economic indicators had been improved, globally, India is the only country showing growth in steel consumption. The steel consumption globally is coming down. The steel consumption per capita in India is only 60 kgs as compared to global average of 208 kgs. In view of this, there was lot of scope for steel consumption growth in India, he said.

He said the Vizag Steel capacity building increased from 3 million tones per annum to 6.6 million tones with an investment of Rs 12,000 crore. Of them 11,500 crore had already been spent. All units were physically commissioned. All of them operating at different levels of capacity utilization. Some of them reached 70 per cent and 80 per cent capacity and some of them were at 40-50 per cent. The target of capacity of 7.3 million tones will be reached during 2017-2018, he said.

On demand drives, Mr Madhusudan said a lot of initiatives were taken place. Creating infrastructure, Smart cities, housing schemes taken up the governments show some results. For RINL, particularly in Vijayawada, Amaravathi, the housing sector coming up will create lot of opportunity to the RINL steel manufactures. The advantage of RINL is the new plant has been expanded and the old one have been modernized. Constant performance, good quality parameters the RINL is expected to robotic growth, the RINL CMD said.

He said the first half of the year is tough and the second half there is positive things– one is market prices stabilization and rebuilt convertors to come into function in November this year, so that the volume of operation will be improve. Only one threat as part is in the second half is that the Coal prices which short of in the global markets, he added.