JSW Steel, currently running at a
capacity of 50-60 per cent, is in talks with its long-term customers to raise
steel prices in the range of three-four per cent.
Jayant Acharya, director (sales
and marketing), JSW Steel, said: “The price increase for long-term contracts
are under various stages of discussions with customers. Our monthly prices have
risen by three-four per cent in October. The quarterly prices, depending on the
product, segment, will be finalised soon. I would not like to comment on how
much it would go up but the indication is of three-four per cent.”
The long-term contracts are
typically with auto, consumer durable companies, etc. Although customer
sentiments are not as buoyant as the companies expected, JSW Steel is going
ahead with the price hike because of the increase in cost of its steel
production and the iron ore issue in Bellary.
The production of semi-steel has
been hit the most, followed by long- and hot-rolled steel. Acharya said, “In
long-steel segment, we needed to take some maintenance shutdowns, so, whatever
shutdowns we had to take, we took last quarter. We are by and large maintaining
cold-rolled production.”
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