Weak Rupee to support Indian steel prices
Last Updated: Saturday, November 12, 2011 - 19:09
Kolkata: A weak rupee may help keep steel prices steady in the country by limited steel imports even as global steel prices would continue to determine the Indian price.
"Right now, we find some issues with Chinese steel prices, but the Rupee-Dollar ratio is not favourable for import," Tata Steel managing director H M Nerurkar said on Saturday on the sidelines of an event, Biz Bridge, organised by the CII.
Lower steel import would help domestic steel companies keep the price steady, Nerurkar said, adding, "Outlook for steel prices for the next quarter remains steady in India."
Speaking about Tata Steel's operations, he said, "Demand will remain sluggish and more dependent on what Europe can export to the areas where the demand is."
However, raw material prices have started coming down. "The spot indications of last two-three weeks are that raw material prices are coming down," he said.
Nerurkar indicated that if raw material prices eased further, there might be improvement in margins, which were under pressure.
Speaking about the poor Q2 results, he said "Indian operations have done very well and I think EBIDTA has improved.
"However, compared to last year the consolidated result has taken a hit. The reason is steel prices have not kept pace with the increase in raw material prices. Also, in Q2 the European market situation has been impacted due to a lot of uncertainty," Nerurkar said.
First Published: Saturday, November 12, 2011 - 19:09