Declining steel prices from Chinese suppliers and strengthening Indian Rupee are likely to keep Indian steel prices under pressure in December, reported JSW officials in recent conference call with investors on 21 Oct’15.
Mr. Jayant Acharya, Director, Commercial and Marketing, JSW Steel said, “Chinese steel prices have further corrected and with the Rupee factor, most of the safeguard duty has been mitigated.”
Mr. Acharya expects that prices are likely to remain under pressure.
JSW’s officials mentioned that imports from China and Korea are still active, but it has slowed down from Japan.
Current offers for Chinese tube grade HRC are in the range of USD 280-290/MT, CFR India. Whereas, CR grade is offered at around USD 290-300/MT, CFR India.
JSW eyes on domestic market
In the year-ago quarter, JSW was exporting 26% of its output, which now stands at 10%. The company’s focus is now on domestic sales, which have increased by 22% Y-o-Y to 2.82 MnT. This surge in sales is supported by increased retail penetration as retail sales have increased by 80% Y-o-Y.
The company is seeking to expand its current capacity from 14 MnT to 18 MnT by the end of FY16.
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