Indian steel producers underutilize their capacities

Indian steel producers underutilize their capacities

According to the statement released by Indian Steel Alliance (ISA), representing five major hot rolled coil producers in the country, Indian steel producers are unable to operate at full capacity due to price limitations and restriction on exports. ISA stated that the producers do not use more than 90% of their capacities as they are not allowed to export surplus production due to suspension of Duty Entitlement Pass Book (DEPB) incentives. As previously reported by SteelOrbis, ISA revealed surplus production figures as 3-4.5 million tons for flat products and 6 million tons for finished carbon steel products. ISA also stated that Indian exports have fallen remarkably in 2003-04 fiscal year. In India export-production ratio is 16.36%, while world average is 39.7%.