SAIL to curb exports to meet domestic demand

SAIL to curb exports to meet domestic demand

A shortfall in domestic supply prompted Steel Authority of India Limited (SAIL) to rethink its production and marketing strategies in order to meet the needs of key segments of the Indian market. SAIL will likely have to cut exports by 60%, to 650 million metric tons, in order to meet the domestic demand. SAIL realized a 4% increase in total domestic sales to 7.5 million metric tons during the first 10 months of the 2004/05 fiscal year. SAIL also recorded 7% year-on-year growth in the sales of finished steel during the same period. Even with these gains, SAIL is attempting to draw up strategies that will allow it to supply 10% more steel to the domestic market in the final quarter of the 2004/05 fiscal year. SAIL also urgently needs to boost its higher grade galvanized corrugated sheet supplies in order to fulfill contracts to supply 5'000 metric tons for reconstruction in tsunami affected areas of India and 7'000 metric tons to Assam for flood relief work.