According to newspaper reports, Tata Iron and Steel Company (Tisco) is planning to focus on exports in the coming year. The move is aimed at capitalising on higher international prices.
Tisco (FY99 Net Sales Rs 62,746 m), a part of the Tata Group, is India's largest integrated private sector steel producer.
The report has quoted company officials saying that the dumping duty imposed by the European Union on the imports of hot rolled coil sheet were not as bad as expected. This is expected to ease the concern that international markets including the United States, Canada and EU were virtually blocking off imports of select steel products from India.
The decision to focus on exports is based on the contention that international markets continue to offer better price realisations. The prices in the domestic market, which has witnessed a rise in volume sales, have yet to show a similar kind of buoyancy. The company would therefore be in a position to boost its margins.
However concerns remain. The possibility of countries extending dumping duties to more steel product imports from India could adversely affect the company's plan. Added to this is the uncertainity that international prices may soften as companies step up production and add capacity.
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