Steel behemoth SAIL's market share in domestic consumption has been
declining since 201314, Parliament was informed today.
India consumed 6.8 million tonnes (MT) of the metal in 201314, 7.02 MT in 201415 and 7.27
MT in 201516, as per data presented by Steel Minister Chaudhary Birendra Singh in a written
reply in Lok Sabha.
Of the total demand, the 'Maharatna' firm accounted for 1 MT (14.8 per cent) in 201314, 96.71 lakh tonnes (13.8 per cent) in 201415 and
1.01 MT (13.9 per cent) in 201516, the data showed.
The public sector undertaking (PSU) produced 13.6 MT, 13.9 MT and 14.3 MT steel in 201314, 201415 and 201516 financial years.
India is the thirdlargest steel producer in the world with a production capacity of 118.20 MT as on March 31, 2016.
On the decline in SAIL's share, Singh said that during 201415 and 201516, there has been a huge increase in import of steel by 75 per
cent and 27 per cent, respectively, which has resulted in sharp decline of domestic steel prices.
"Declining prices have led to lower sales realisation for domestic steel producers, including SAIL. The fall in prices have led to cash deficit
in the company, which is being met by SAIL by way of borrowings from banks and debt market," he added.
The Indian steel industry is currently passing through a severe downturn due to dumping of products and predatory pricing by global steel
players with excess capacity, the Minister said.
"Government has taken various corrective steps to address the problems faced by the domestic steel sector and to provide level playing
field to the domestic steel producers," he added.
Source: Economic Times