Leading steel producers including JSW, Essar, Ispat Industries have resorted to production cuts following the steep decline in demand for the commodity amid the global economic slowdown.
The steel firms are also aiming to clear their piled up inventory as they fear a further fall in prices, which have already nosedived globally as buyers have witheld their bulk orders anticipating a further correction in the rates.
Among the domestic producers, Sajjan Jindal-led JSW Steel today said that it would rationalise the product mix as per the current market conditions and appropriately modify the production programme to effectively reduce the total production by around 20 per cent from November.
Ruia's promoted Essar Steel and Vinod Mittal-led Ispat Industries are already operating below the optimum capacity.
"It is true that our steel plants are operating at about 75 per cent of their capacities," an Essar Group spokesperson said.
An Ispat Industries official said that the company is adjusting its production as per the prevailing market conditions, but declined to give any figures.
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Integrated steel maker Jindal Steel and Power also said it is looking to bring down the cost of production and ease other input pressures on the company's margin.
"We are working on cost cutting measures among other measures in the present market conditions. But we are not announcing any production cut," company's Director (Finance) Sanjay Maru said.
Country's largest steel producer SAIL, however, will not prune its output in response to the slump in demand.