UDAIPUR (Commodity Online): Steel Authority of India (SAIL) has discovered iron ore deposit in Bhilwara district of Rajasthan. Feasibility study to extract iron ore is still on.

SAIL has to study the size of deposit and find out whether it would be sufficient for commercial exploitation. All depends on further evaluation of deposit and its commercial viability.

Steel sector has seen its ups and downs in the last two years. After a peak rise in demand and prices, the steel prices fell steadily following the global meltdown.

Last five to six years, China has been dominating the steel sector, both in production and demand. China accounts for about 45% of the production of steel and it has a massive market due to heavy investment in infrastructure.

The sector has seen some consolidation with the large groups of LN Mittal acquiring small ones which in a way has helped to withstand volatility in the global market.

India’s domestic market is growing at a fast pace. With high disposable income among people of rural areas, implementation of Sixth Pay Commission, construction activities have gathered pace. This would continue to keep the demand for steel and cement in the country.

SAIL, with a turnover of Rs 48,681 crore, is among the top five profit earning company in the country. It posted a net profit of Rs 1,300 crore in the first quarter.

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