The current demand of value added steel

The current demand of value added steel Acharya said the current demand of value added steel in the country is close to 9 mtpa and is change expected to be close to 12 mtpa by 2015. “We are looking at cornering a substantial share of this demand by 2015,” he said, adding that though it is difficult to quantify, margins in value added are always better than flat steel.

An analyst with a leading domestic brokerage firm said more and more companies are currently shifting towards value added steel as volatility in raw material prices are squeezing the margins of these companies. “With value added steel, you get a pretty high price as you go up the value chain from cold-rolled to galvanised to colour coated,” he said.

At every level of value addition, the price of the end product goes up by Rs2,000 to Rs4,000 per tonne, translating into better margins for the steel producers, he said.