Visakhapatnam Steel Plant, which reduced its product prices by Rs 8,500 per tonne in November, is offering a further discount of Rs 2,500 on each tonne steel from December 23 to boost sales and clear old stocks. The company had announced a similar discount on December 1.
“Despite reducing prices by about Rs 8,500 per tonne in November, we could not clear the accumulated stocks. Due to global recession, construction activity has come to a standstill for the last four-five months impacting steel sales across the country,” said CJ Patil, director (commercial), VSP.
VSP produces about 300,000 tonne steel every month. This apart, about 700,000 tonne steel products worth Rs 2,000 crore are lying with the company.
The company sold 158,000 tonne products in November and expects to sell 230,000 tonne this month.
VSP's production has also come down by 20 per cent this month. "One of the converters was damaged which affected the production," clarified Patil.
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