Friday,Jul01, 2011
TATA Steel Ltd executives said that steel prices in the July to September period may remain the same as in the current quarter, with raw material costs continuing to bite, but festival demand afterwards will determine whether consumers will pay higher prices.
Mr HM Nerurkar MD of TATA Steel told reporters that “Coal remains at a similar level. So if we want to maintain the same margins we need to roll over the prices to the next quarter.”
Mr Nerurkar said interest rate increases 10 times since March 2010 have hurt demand, mainly in the consumer goods sector, but there was still a chance it may rebound.
Mr Nerurkar said that “To some extent, it’s the consumables like automobiles and other things that depend a lot on loans (where demand has been hurt). That’s the initial shock. After some time, people do get used to a particular thing and they start to take it in their stride.”
He said the construction sector had also taken a hit, but government spending on infrastructure was supporting it.
Mr Nerukar added that “If the market does not support (demand), if there is a glut, the situation will be different. If there is a big slowdown, marginal players, who have the highest costs, will trim down production. Nobody would want to make losses.” (sourced from livemint)
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