'Hard times' ahead for European steel players, says Tata Steel MD
Tuesday, 11 August 2009
JAMSHEDPUR, Aug 10 (PTI): Tata Steel Managing Director B Muthuraman has said crisis-hit European steel producers' sales will go down by 75 per cent in the wake of the global economic slowdown, and India and China will be the ones to buck the trend.
"I must tell you one thing that . this year is a difficult year for all European companies including our own part. this is a very very difficult year because when we have demand going down to half and prices going down to half we will see our turnover is one-fourth...", Tata Steel Managing Director B Muthuraman told reporters.
"I would see quarter three onwards the volume would be definitely better in China and India compared to other economies of world...there are deeper crises there," he said.
".In India the prices have come down to half but then demand has not come down to half. The demand is still the same. So there is volume," he added.
India and China are the only two countries where demand is positive, with China recording a growth of 4 per cent and India doing better at 5.5 per cent in April-June 2009 compared to the corresponding period last fiscal, he said.
"I must tell you one thing that . this year is a difficult year for all European companies including our own part. this is a very very difficult year because when we have demand going down to half and prices going down to half we will see our turnover is one-fourth...", Tata Steel Managing Director B Muthuraman told reporters.
"I would see quarter three onwards the volume would be definitely better in China and India compared to other economies of world...there are deeper crises there," he said.
".In India the prices have come down to half but then demand has not come down to half. The demand is still the same. So there is volume," he added.
India and China are the only two countries where demand is positive, with China recording a growth of 4 per cent and India doing better at 5.5 per cent in April-June 2009 compared to the corresponding period last fiscal, he said.