Arcelormtal Nippon Steel Shopping local investments despite the decline in steel prices

Although there is a difficult global environment characterized by customs tariff tensions and weak steel prices, Arceelormtal Nippon Steel (AMNS) is still optimistic about the Indian market, with plans to expand aggressive capabilities and a long -term commitment to self -sufficiency in steel production.

In exclusive conversation with Business TV todayRanjan Dar, Director and Vice President – Sales and Marketing at AmNS India, said that the company is invested strongly in expanding its production capabilities. He said that confidence stems from increased steel consumption in India and the country’s ambition to become a global manufacturing force. “The per capita consumption in India in India is still low-about 93-94 kg compared to the global average of 226-227 kg. Until reaching this average, we will need more than twice our current production,” Dar.

The company will invest $ 30 billion in India over the next decade with the expansion of Hazira, Odisha and Andhra Pradesh.

More importantly, he stressed that the company’s expansion strategy focuses on the local market. “The good part is that these expansions are not directed towards export-they are built in the local market. There may be a small exports, but the priority is to serve India’s increasing needs.”

DHAR highlighted the growth in India in infrastructure, cars, devices and industrial development, saying that these sectors will continue to pay steel consumption. He also stressed that the push of India to be a global manufacturing center depends on the availability of high -quality steel. He said: “With the joint power of ArcelleMittal and Nippon Steel, we have experience and know -how to bring in future ready -made steel products to India.”

However, DHAR seemed to note caution in the current situation of the steel industry. He said: “Steel prices are at the lowest level of four years, while the costs of inputs were not decreased at the same pace. This has pressed on severe margins.” “In order for the steel sector to survive and re -invest in future capabilities, the margins need to improve.”

Some of this pressure attributed to a significant increase in imports last year – more than 20 % – harmful to local players. Dhar acknowledged that the General Directorate of Commercial Treatments (DGTR) has recommended preventive measures to support local manufacturers. “We hope to see some government measures soon, as the Indian steel industry remains one of the largest contributors to the country’s Capex. Maintaining this momentum requires the applicable margin structure.”

With regard to increasing prices, DHAR explained that pricing will be eventually determined by market dynamics. “There is no single factor for price leadership. This will depend on how the demand evolves and how the policies are the scene. He also said that the margins are hungry greatly and needs to be improved.