Echoing similar sentiments, Tata Sons executive director and former Tata Steel managing director J J Irani said, “We definitely are in for a difficult period. We have a tough 2009 ahead and things might get worse before it gets better. It is very important to manage your inventories,” he said on the sidelines of an international conference on minerals and metals organised by the Indian Institute of Metals. He, however, argued that the steel companies having raw material security would have some cushion in dealing with the downturn while those who do not were likely to feel the pinch more. Irani made it clear that the ongoing expansion of Tata Steel would not be affected as finances were in place. Interestingly, he argued cash-rich firms could explore the current downturn to buy cheaper assets to reap the benefits later.

The Indian companies who have reportedly cut their production include Ispat and JSW while state-run steel giant SAIL and Tata are yet to do so.