Steel demand continues to be buoyant-JSW Steel

JSW Steel Ltd., one of the largest flat steel producers in India says the steel demand and growth in the country continues to be strong.  The consumption of steel in India is growing in excess of CAGR of 10%.  The domestic demand is led by strong industrial and manufacturing growth and increased economic activity.  India is at a take off point and is likely to become a global sourcing hub for various products like steel, auto & auto components, engineering goods, etc. 

Talking about the overall global trend in the sector, Mr. Seshagiri Rao, Director (Finance), JSW Steel Ltd., explains that the increase in freight rates and strong iron ore spot prices are expected to put cost pressures on the steel producers.   A strong demand in Europe and low global inventory stocks signal stable prices in the market.  A clear indication of this can be seen by the recent announcement by Corus to increase the prices in mainland Europe by 5 – 7% for its quarter 4, 2006 deliveries.  The other major European steel producers are likely to follow suit.

 “Europe’s reduced procurement activity due to Summer Holidays and the growth in production in China in the first six months of calendar year has exerted some downward pressure on prices,” says Mr. Rao.  The company views this as a short term correction in line with international trends.

In line with this trend, JSW Steel Ltd., today announced a reduction in price of its HR coils by about Rs.750 – Rs.1000 per tonne for Sept., 06 prices.  This new price would be applicable for spot buyers only.  Long term contractual prices will be unaffected at the earlier levels. 

In the present scenario of increasing Zinc prices, the Company is currently reviewing the cost structure and the international price trend and a decision for revision, if any, will be announced soon for the value added products.

Sourced From: Adfactors Public Relations Pvt Ltd