Global steel sector struggling to generate profits, demand increasing in India: Tata Steel CEO

Jamshedpur, Jan 1 (PTI) Tata Steel CEO and managing director TV Narendran on Wednesday said while the global steel sector is struggling to generate profits due to factors such as China’s aggressive pricing, the demand for the metal and its consumption in India is growing.

Addressing a gathering at a New Year cake-cutting event here, Narendran said 2023 and 2024 have been difficult for the sector globally because of compression in steel margin and a continued struggle to make profits, particularly due to the curbs imposed in China during COVID.

On global conflicts, he said events happening in various parts of the world have direct or indirect impacts on India. However, the most significant challenge the country faces is the slowdown in China, where recovery is yet to materialise.

Narendran expressed concern over China’s unfair competition, urging the Indian government to take steps to safeguard domestic industries. Despite these challenges, he assured that Tata Steel is well-positioned and profitable in India due to its competitiveness and the growing demand for steel.

Claiming that several countries, including the US, Canada, and European nations, have already taken measures to protect their industries, Narendran called for India to take similar actions against unfair steel imports from China, as the steel sector holds significant potential to create wealth and jobs.

Although demand for steel in India is growing at 8 per cent, Narendran pointed out that margin compression remains a challenge and stressed the importance of value addition.

He also spoke about the opportunity to leverage the mineral-rich states such as Jharkhand, Odisha, and Chhattisgarh, urging that India should not miss the chance to convert these mineral resources into industries that will create jobs.

Narendran advocated for more incentives to attract investment into the sector, noting that the steel industry has been investing between ₹40,000 crore and ₹50,000 crore annually. He further emphasised the importance of private sector investment for the country’s growth.

Acknowledging that the past year was challenging for Tata Steel, Narendran pointed out the commissioning of the country’s largest blast furnace at Tata Steel’s Kalinganagar plant in Odisha as a major milestone. He commended the team for their efforts to ensure the safe and successful commissioning of this project.

Tata Steel has also been working on other initiatives to benefit both employees and the local community, such as the construction of staff quarters and schools.

In response to a query about the new government in Jharkhand, Narendran mentioned that discussions had taken place with the government, and Tata Group had assured cooperation for the state’s development.

He highlighted Jharkhand’s vast mineral resources, including iron ore, coal, and its potential in steel and automotive manufacturing, stressing the need to focus on value addition to create jobs.