Tata Iron & Steel Company (Tisco) is targeting a higher growth rate in exports of about 18-19 per cent this year in comparison to last year’s growth.

The international business division of Tisco, till date, has exported more than six million tonne of steel products of which more than two million tonne comprise flat products. The company said that prices would remain stable for some more time.

Speaking to FE, Tisco vice president (finance) RC Nandrajog said, "Tisco, as a policy, exports about 15 per cent and we have been successful in doing this within a short period of time. Last year, exports were restricted and low given the dismal steel prices but this year we are much higher than 15 per cent — we are at about 18-19 per cent. We have been meeting the commitments, specifications and are competitive in the international markets."

Tisco has not seen any impact from the recent fall in steel prices in China yet. the company said that Asian steel prices and its export realisations would remain stable for a few more months. It expected the flat demand for steel to remain stable in China because of the good domestic demand there.

In recent months, Tisco has exported hot rolled (HR) products to China at $330 FOB.

Given the fact that the Indian steel industry faces several difficulties like high transportation costs, no proper power availability etc., Tisco has managed to remain one of the lowest cost producers in the world. According to a Morgan Stanley report, the company’s flat product price hike of Rs 500 to Rs 1,000 per tonne effective March 1, has been accepted by its customers. The gap between the landed cost of imported flat products and domestic prices is now at five per cent levels.

According to Tisco, this gap was comfortable and any further increases would need Asian prices to rise further.

Commenting on the export front, Mr Nandrajog said that he did not see any stumbling blocks. "This year, exports have grown substantially higher.

The main question is whether the Indian market is able to meet the specifications and what the prevailing price at the given time is."

He said, "This year, prices are high so a lot of exports are happening unlike last year. There are two things that are important — price and quality— if these are maintained, exports can always be high," adding, "There are a few restrictions for Indian exports like the anti-dumping duties, but in my view, these are temporary measures and will not last very long."