Many steel giants have decided to employ cost cutting measures including production cut and retrenchment of additional staff. Steel prices currently stand at $500 a tonne in the international market as compared to $1,250 a tonne in March-April.
Europe based steel giant, Corus has decided to cut production by 30 per cent following slow in demand.
Sajjan Jindal-owned JSW, Essar Steel and Ispat Industries are also facing low demand of steel and are trying to sell out inventory fearing further decline in global prices. Integrated steel maker Jindal Steel and Power said that it would try to reduce production cost and ease input pressure. Company director (Finance), Sanjay Maru said that the company would do everything to save its interests.
Steel Authority of India Limited (SAIL) would go for its earlier plans and would not cut production.
State-run Rashtriya Ispat Nigam, SAIL, JSW Steel, Ispat Industries and Essar Steel has reduced steel prices to Rs 32000 – 36000 from earlier high of Rs 55000 to avoid import of steel from international market.