SAIL plans to reduce exports
Indian steel producer Steel Authority of
India Ltd (
SAIL) is reportedly planning to reduce its exports to meet rising domestic demand.
Chairman of
SAIL announced that he plans to cut exports by half in the current fiscal to meet strong demand from Indian companies. The chairman also estimates that the demand will increase by two-fold by 2012.
According to the decision made by the board of
SAIL, sales to overseas markets will be decreased by 600'000 tons this year from 1.2 million tons recorded in the previous year.
SAIL officials stated that the new decision is in line with the advice of the Steel Ministry, which told Indian steel producers that they should export only after domestic demand is met.
Due to the strong demand,
SAIL also plans to increase its
production by 54% to 20 million tons by 2012.
SAIL has currently been focusing on the Indian domestic market as demand is strong. However certain analysts state that in order to be competitive,
SAIL should focus on international markets as well.