Tata Steel CEO: Global steel industry struggles to make profits, demand in India increases

Jamshedpur, Jan 1 (PTI) Tata Steel CEO and Managing Director TV Narendran on Wednesday said that while the global steel industry is struggling to generate profits due to factors such as aggressive pricing by China, India’s interest in the metal The demand and consumption are growing.

Speaking at a New Year cake-cutting event here, Narendran said that both 2023 and 2024 will be difficult years for the global steel industry as steel margins are compressed and profits continue to be difficult, especially due to Restrictive measures implemented by China during the COVID-19 epidemic.

On global conflicts, he said events happening across the world have direct or indirect impact on India. However, the most significant challenge facing the country is China’s economic slowdown, with recovery yet to materialize.

Narendran expressed concern about unfair competition from China and urged the Indian government to take measures to protect domestic industries. Despite these challenges, he is confident that Tata Steel is well-positioned and profitable in India due to its competitiveness and growing demand for steel.

Narendran claimed that many countries, including the United States, Canada and European countries, have taken measures to protect their domestic industries and called on India to take similar actions to combat unfair steel imports from China, as the steel industry has the potential to create wealth and development huge potential. Job opportunities.

Although steel demand in India grew by 8%, Narendran noted that margin compression remains a challenge and stressed the importance of value addition.

He also spoke about opportunities to tap into mineral-rich states like Jharkhand, Odisha and Chhattisgarh, urging India not to miss the opportunity to convert these mineral resources into employment-generating industries.

Narendran advocated for more incentives to attract investments into the sector, noting that the steel industry has been investing $40,000 Crores and Rs. $50,000 crore per annum. He further emphasized the importance of private sector investment for the country’s growth.

Acknowledging that the past year has been a challenging one for Tata Steel, Narendran noted that Tata Steel’s Kalinga Nagar plant in Odisha commissioned the country’s largest blast furnace. is an important milestone. He expressed his appreciation for the efforts of the project team to ensure the safe and successful commissioning of the project.

Tata Steel has also been working on other initiatives that benefit employees and the local community, such as building employee dormitories and schools.

Responding to a query about the new government in Jharkhand, Narendran mentioned that discussions have been held with the government and the Tata Group has assured cooperation for the development of the state.

Highlighting Jharkhand’s rich mineral resources including iron ore, coal and its potential in steel and automobile manufacturing, he emphasized the need to focus on value addition to create employment opportunities.