August 30, 2008

Indian CR makers and galvanizers in peril

Indian secondary steel producers would be hit hard if the proposal to impose export duty on cold rolled steel and galvanized steel becomes reality. Imposition of export duty on CR and galvanized steel would result in heavy losses which may lead witness retrenchment of workers.

Mr SC Mathur president of CR Steel Manufacturers’ Association said that “Since the installed capacities of CR and galvanized steel are not being utilized fully at present, export duty on these products would result in the closure of some steel mills. This in turn would lead to contraction of labor engaged in the sector.”

At present, there are nearly 70 CR and galvanized steel manufacturers in the secondary steel sector providing direct and indirect employment to over 200,000 people across the country.

As per the association, while the installed capacity of CR steel in India is close to 13 million tonnes a year, the production during 2007-08 stood at 11.27 million tonnes. The total installed capacity of galvanized steel in the country is 6 million tonnes while output was just 3.82 million tonnes last year. Domestic consumption was around 2.19 million tonnes while the rest was exported.