Tata Steel plans to focus more on India as it expects global markets to face headwinds due to geopolitical issues.
N Chandrasekaran, Chairman, Tata Steel said the global steel industry continues to witness challenging times though the performance of the industry has been better this fiscal.
According to the World Steel Association, global steel output would taper next year and the slowdown is expected to continue through 2035 as countries around the world start to rein in output while demand retreats, he said in the 110th annual report released on Saturday.
Given the current stage of development and the likely growth path for India’s economy in the next decade, steel demand in India will witness significant growth in future.
While the steel sector in India is financially stressed, the government has outlined its intent to ensure the long-term viability of the sector through the recently announced National Steel Policy 2017, said Chandrasekaran.
Going forward, he said, Tata Steel’s priorities will be to focus on the Indian market, achieving operational excellence and delivering value-added and differentiated products to its customers.
T.V. Narendran, Managing Director, Tata Steel, said the global economy today is confronted with increased geopolitical risks and fast-paced disruptions in technology. This trend increases the risk of protectionism, unemployment and a global trade war that could have a material impact on the global economy and the financial markets.
In the year gone by, while the broad economic parameters have shown signs of stability, the underlying fragility of the global economy continues to be high. Policy-makers, regulators and the political eco system both in developing and developed economies will have to address the imminent challenges of inequality, job creation and climate change through a sharper and sustainable policy framework, he said.
The global steel industry continues to face structural overcapacity but we see recovery in developed economies such as Europe, gradual improvement in demand in India and better industry conditions in China. At the same time, risk of uncertainty is likely to remain at elevated levels due to structural issues such as geo-political uncertainty, especially in the US and UK, and the rising trend of protectionism, said Narendran.