Indian producers in struggle of reducing losses

Indian producers in struggle of reducing losses

According to recent news in the market, Indian producers have been struggling to reduce their losses through increasing production of value-added products. As previously reported by SteelOrbis, Indian government demanded domestic producers not to hike prices of hot rolled coils till June. However, not compensating the rising costs, Indian steel producers, alleging that the government's warning about prices does not include value-added products have started increasing production of value-added products with the purpose of increasing their earnings. Many steel producers are of the opinion that higher prices of value-added products may compensate rising costs, although the production of these products are limited. Steel Authority of India Ltd (SAIL), Tata Iron and Steel Corp (TISCO), Jindal Group, Ispat Industries and Essar Steel, not increasing hot rolled coil prices since March, still sell the product at the level of Rupees 25'000 per ton ($558).