Domestic steel majors are looking at a 35-50 per cent jump in exports during the financial year, fuelled by increasing demand in China, Europe and the Middle East.

Ispat is targetting a 50 per cent growth in its exports turnover in this year, which is estimated at Rs 1,200 crore (Rs 12 billion) against Rs 800 crore (Rs 8 billion) in last fiscal.

"The Middle East market is very important for us, especially with the reconstruction activity in Iraq on its way," said Vinod Garg, executive director, marketing, Ispat.

The company is looking at increasing its exports to around 600,000 tonne this year, against 420,000 tonne in 2002-03.

"Though China continues to attract global supplies, Europe and Middle East markets have started looking up. About 25 per cent of our exports go to the Middle East. Also, the margins in these countries are quite lucrative," said Raman Madhok, joint managing director, Jisco.

The company is targetting an exports turnover of around Rs 1,500-1,600 crore (Rs 15-16 billion) in 2003-04, a growth of 33 per cent over Rs 1,200 crore (Rs 12 billion) in the previous year.

Jisco, which exported around 395,000 tonne of galvanised products in 2002-03, is looking at exports of around 500,000 tonne in the current financial year.

"Our exports to Middle East countries, especially Iran, have risen considerably in this year, almost by 30 per cent when compared with last year," said Madhok.

"There is considerable deficit of steel in the Middle East. This is making the margins in this market very lucrative for steel players," said a steel sector analyst.

While the Steel Authority of India Ltd had targetted exports of 1 million tonne for this year, against 850,000 tonne in 2002-03, the company is looking at exports of around 1.2 million tonne, based on the first-half sales figures, company officials said.

Essar Steel is looking at a 35 per cent rise in its exports, from Rs 745 crore (Rs 7.45 billion) in 2003-04. Essar officials said, "We are aiming at an export of around 700,000 tonne in this year, against 550,000 tonne last year."

Jindal Vijayanagar Steel Ltd is looking at increasing its exports turnover from Rs 350 crore (Rs 3.50 billion) in 2002-03 to Rs 500 crore (Rs 5 billion) this fiscal, a rise of around 43 per cent.