Crude steel output grew 3.4% in 1999 - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Crude steel output grew 3.4% in 1999

Jan 24, 2000

According to the International Iron and Steel Institute, domestic crude steel production grew 3.4% to touch 24.26 million tonnes in 1999. The steel sector has posted a mixed performance during 1999. Although output rebounded (see graph) on the back of a global and domestic economic recovery, steel prices continued to be under pressure due to an excess of global supply. The economic revival was aided by a pick up in the East Asian, Japanese and the European economies.

The price scenario in the domestic markets has however not been good in 1999. This was mainly due to two reasons. First, the pick up in the domestic economy was not strong enough to absorb domestic steel output (the other reason may be lower international prices). And second, the surplus global supply found its way into the Indian markets. This created an excess supply in the domestic markets, even as consumption increased, and suppressed prices.

The domestic steel companies sought and were granted protection in terms of floor prices from the government. Coupled with this, these companies began to tap the export markets in view of the better price realisations and sluggish demand in domestic markets.

Currently, the realisations in both the domestic and international markets have firmed up considerably. However, with the European Union and United States imposing import curbs on Indian steel, the prospects have once again blurred. Whether the domestic companies will be able to drive out foreign competition in the domestic markets or establish themselves as leading exporters in the global markets is what will determine the fate of the sector in the coming years. In either case, Indian companies will have to dramatically improve productivity levels in order to become more competitive.

Equitymaster requests your view! Post a comment on "Crude steel output grew 3.4% in 1999". Click here!

  

More Views on News

SAIL Share Price Down by 10%; BSE METAL Index Down 6.2% (Market Updates)

Apr 12, 2021 | Updated on Apr 12, 2021

SAIL share price is trading down by 10% and its current market price is Rs 92. The BSE METAL is down by 6.2%. The top losers is SAIL (down 10.4%).

TATA STEEL Share Price Down by 6%; BSE METAL Index Down 6.0% (Market Updates)

Apr 12, 2021 | Updated on Apr 12, 2021

TATA STEEL share price is trading down by 6% and its current market price is Rs 893. The BSE METAL is down by 6.0%. The top losers are TATA STEEL (down 5.8%) and JINDAL STEEL & POWER (down 5.4%).

More Views on News

Most Popular

A Critical Update on the Market (Fast Profits Daily)

Mar 30, 2021

In this video, I'll tell you why I am recommending caution in the market at this time.

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

What You Need to Find Hundred Baggers (Profit Hunter)

Mar 30, 2021

100 baggers of the last decade share this common trait. Here's how to use it to nail future multibaggers.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE METAL


Apr 12, 2021 (Close)

S&P BSE METAL 5-YR ANALYSIS

COMPARE COMPANY

MARKET STATS