India spared, margin pressure seen in global steel: Irani

With the fear of global slowdown, the metal space has been witnessing a huge amount of volatility and depression for last couple of days.

Former director of Tata Sons, JJ Irani sees a downward trend in the steel prices. He believes the steel producers will cut their losses by lowering production to maintain prices. "Margins are likely to be under pressure as far as the international output is concerned, which would not be the case in India," he pointed out.
When asked about the ban on iron-ore mining in Karnataka, Irani said that mining for the domestic consumption should continue. The government stifled the local industry. Export should be banned, but material for local production should be immediately released, he added. Here is the edited transcript of his interview. Also watch the accompanying video. Q: How difficult would things get for global commodities given the situation in Europe and US?
A: The Indian economy is very closely tied to the international economy. Everything that takes place in Europe, America or Japan, is bound to have an impact on the Indian front.
As far as steel is concerned, we are insulated from the international economy. India makes very little steel compared to its requirements. Even if the steel companies meet the Indian market requirements, there will be shortage of steel in our local market. Q: At this point, people have been drawing parallels with situation of economies in 2008. How much would that hit demand for commodities including steel? Does the situation seem similar to you? Would there be a breakdown in terms of demand purely for commodities?
A: In 2008, the Indian steel companies