InvestorQ : Why is SAIL seriously looking at exports to enhance its visibility?
sara Kunju made post

Why is SAIL seriously looking at exports to enhance its visibility?

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8 months ago
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SAIL is now turning to exports focus to compensate for the weak domestic market conditions. SAIL has traditionally depended exclusively on domestic steel demand but that is now going for a toss. SAIL entered the lockdown with inventory backlog of 2 million tonnes of steel and has been forced to find new buyers overseas to clear the stock. In FY20, SAIL was the top steel producer at 16.15 MT, but exports were just 1.18 MT. However, in April and May, SAIL has built new customer relationships in China, Vietnam and Southeast Asia. Of course, things could change once the construction activity picks up and the auto manufacturers like Maruti and Hyundai have their factories up and running. But as a long term strategy, it does add value for SAIL to have an alternative export back up strategy.

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