From ET Realty
KOLKATA: Tata Steel today said it expects commercial production at its Kalinganagar steel plant in Odisha to begin from April.
“Some units of the plant like coke oven plant, sinter plant have already started production on a trial basis. The blast furnace and steel melting shop will be on trial in the current quarter (Jan-Mar). So we should be able to start commercial production at Kalinganagar plant from April 2016,” Tata Steel Managing Director T V Narendran said.
He was speaking on the sidelines of the inauguration of Indian Iron & Steel Sector Skill Council office at New Town here.
With the 3-MT Kalinganagar steel plant’s first phase, the Tata Steel India’s total capacity will rise to 13 MT.
Narendran said though 2015 was bad for the steel market due to sluggish demand and cheap imports, Tata’s Jamshedpur plant will end the year with production close to its rated capacity of 10 MT.
He said India’s steel demand is expected to grow by 5-6 per cent in 2016 and the worst seems to be over.
“Last year (2015) was very bad in terms of global steel prices. But I believe steel prices have hit the bottom. Steel prices in 2016-17 will not be as low as in 2015,” he said.
“I am more positive on demand … We are quite hopeful that construction sector, which consumes 60 per cent of the steel produced in the country, is showing sign of improvement. Government’s focus on infrastructure and smart cities will help improving demand,” he said.
World Steel Council has predicted India’s steel demand will grow by 7-8 per cent in the next two years.