Title: "Export duty has disrupted steel business in India," says T V Narendran, Tata Steel
New Delhi: Domestic steel prices have fallen nearly 20 percent from its recent peak. Coking coal
prices have been very volatile of late. To understand what this means for Tata Steel and the entire steel sector, we, at ET Now, on our 13th anniversary spoke with Mr. T V Narendran, Managing Director of Tata Steel.
Talking about the most recent trigger- export duty imposition on steel products, Mr Narendran
believes export duty has disrupted steel business in India. Steel prices have been declining since April end but export duty imposition has accelerated the decline in steel prices.
"Export duty is not a good idea for India; India should be a exporter of steel", he says. The
industry has submitted to the government that we should encourage exports. Export duty is not a good idea over the longer term, he says.
As far as steel prices are concerned, international steel prices stand at $730-740- higher than the long-term average. Chinese co's are no longer aggressive exporters. "Seeing far better balance in global trade over the next decade than we saw over the last decade", he says. Mr. Narendran says a lot of capex is going into green steel. Talking about spreads in specific, spreads will be higher than they have been over the last 10 years. "Running a profitable business- despite volatile coking coal prices and lower steel prices", says Mr. Narendran.
When asked about export duty imposition, Mr. Narendran says they would like to have policy stability and be a steel exporting nation. "This is not an ideal state to be in but we've gone through worse", he says. Mr. Narendran is reasonably optimistic on the outlook on European business.
Mr. Narendran expects Chinese government will stabilise its economy. He does not expect China to export the way it did in the past.
Mr. Narendran says they have seen recovery in European steel demand over the last few days due to declining prices. "This will not be a super year but will still be a good year", he concludes on an optimistic note.