Saturday, September 25,
JSW Steel Ltd expects to make yet another round of price increases next month, by around 5% i.e. about Rs 2,000/tonne.
Mr MVS Seshagiri Rao joint MD of JSW Steel said that “We are seeing 10% plus consumption in India. We expect demand to pick up in long products now. The next six months’ consumption will be much, much better.”
Indian steel companies had raised prices in September by 3% to 4%, on firm global rates and rising input costs and had indicated that rates would be on an uptrend.
Incidentally, raw material prices are set to soften in the October to December period. According to JSW officials, coking coal contract prices for the quarter ending December 31 are expected to fall to as low as US $200/tonne from about US $225/tonne in the current quarter, in line with benchmark prices arrived at by Japanese steel mills and large suppliers. Similarly, Iron ore prices may fall by 20% to US $120/ tonne from US $150/tonne.
The demand uptake in India is being led by consumer durables and auto sectors but JSW officials feel demand from infrastructure and real estate would also contribute in the coming quarters.
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