SAIL registers hot metal growth at 2 pct

SAIL also registered a 6% growth in sales volume over the previous quarter at 2.906 million tonnes.

Simultaneously, the techno-economic parameters for the third quarter registered growth. There was a 4% growth in BF productivity and 6% growth in continuous casting in the current quarter compared to the previous quarter.

However, the Company incurred a net loss of Rs 1529 crore for the third quarter of FY’16 as against a net profit of Rs 579 crore over the third quarter of FY’15, primarily due to a 24% decline in net sales realisation over the corresponding period last year.

Sales were adversely impacted by a huge surge in imports of low priced steel.

Global steel prices have registered a steep fall over the last year - from around $460 to $280 - mainly due to slowing Chinese consumption which is leading to over-availability of cheap steel into the market. Imports into India are at an annualised rate of 12 million tonnes, which is 20% up over a very high base of FY’ 15 when they had surged by 75% over the previous year.

The domestic market continues to suffer from the rising imports, particularly from China, Japan & Korea, at prices which are much lower than the domestic cost of production, affecting the margins of steel producers operating in India.

SAIL Chairman PK Singh said: "The global scenario is very challenging and demand-supply imbalance resulting in price adjustments is hurting the domestic steel industry. We are focused on ramping up production from our new units and are adopting cost-efficient strategies to improve our NSR. The recent favourable policies announced by the Government and its concerted efforts to enhance infrastructure spends in viable sectors will improve the domestic demand and provide some relief to the Indian steel industry."