• OUTLOOK ARENA
  • VIEWS ON NEWS
  • FEBRUARY 9, 2000

Tata Steel may focus on exports

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.

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407