Visakhapatnam: Steel imports from China are hitting local steel makers, including the giants like government-run steel maker, Vizag-based RINL. The demand for steel had already come down in the recent months due to lack of infrastructure activity and the relatively cheaper Chinese steel coming into the country has further added to the woes of the local players.
RINL has registered a turnover of Rs 11,665 crore with a profit after tax of Rs 62 crore in 2014-15. Last financial year, the profit after tax was Rs 366 crore and the turnover was Rs 13,431 crore. The dip in the revenues has been attributed to import of steel from China.
According to the RINL, the increase in imports from China during the fiscal was 202 pc in the non-flat category (longs) in the just-ended fiscal. “With comparable quality, Chinese steel is definitely giving jitters to the local steel producers. The rate per tonne is also relatively cheaper than that sold by locals. There are so many bulk importers on west coast who are bringing in Chinese steel. It is estimated that China had set a target to export at least 15 million tonnes this current fiscal,” AP steel small-scale industries welfare association president P.S.R. Raju told DC.
“Demand for steel has dropped for various reasons, including the construction sector going slow. If at least the demand picks up, we will be able to compete with Chinese steel,” Vizag Profiles Group director K.V. Bhaskar told DC....
Location: Andhra Pradesh