Steel Share Market
Steel Share Market has set a target of achieving an annual production capacity of 100 million tons by 2015; it is planning for capacity expansion to be balanced roughly 50:50 between greenfield developments and acquisitions. Overseas acquisitions have already added an additional 21.4 million tonnes of capacity, including Corus (18.2 million tonnes), NatSteel (2 million tonnes) and Millennium Steel (1.2 million tonnes). Tata plans to add another 29 million tonnes of capacity through acquisition. The equity shares of Tata Steel are listed on the Bombay Stock Exchange,
Steel Share Market Advantages
After a prolonged weakness in commodity prices fuelled by low demand, the BSE Metals Index has risen 18% in the past two months. This is largely thanks to steps taken by the government to check cheap Chinese imports and expectations of a firming in global metal prices.
Steel stocks have seen a smart run up in prices. Tata Steel and JSW Steel jumped 48% and 31% from respective lows in February. This followed a government decision late last year to impose a provisional safeguard duty of 20% on import of certain categories of steel to protect domestic producers from undercutting Chinese firms.