Indian steelmaker Essar Steel has announced that it plans to invest INR 15 billion ($242 million) over the next one year. The company intends to complete the second phase of a six million mt per year pellet plant at Paradeep in Odisha and commission a 1.35 million mt per year coke oven plant at Hazira, Gujarat.
"We may also consider investing in an integrated steel plant in Odisha, if the government allocates iron ore mines for captive use. The company has signed a memorandum of understanding with the state government to acquire part of the land parcel required for setting up a steel plant," said Firdose Vandrevala, Executive Vice Chairman of Essar Steel.
According to Essar Steel, in contrast to the global trend, iron ore prices in India have increased sharply in the past few months, leaving steel companies in a difficult situation. Steel companies could not pass on the increase to customers as it would have triggered large-scale imports with steel prices in the global markets falling steadily.
India's steel demand in October dipped 1.3 percent to 6.53 million mt, while it was down marginally in the September quarter at 18.6 million mt against 18.8 million mt in the same quarter a year earlier.