December 06, 2012 / 09:45 IST
JSW Steel is considering increasing prices by 3-4 per cent as there has been a rise in input costs, a top company official said. "Internationally, prices have gone up by 30 per cent, and the rupee has depreciated once again. There is also cost pressure as we buy iron ore from international markets. There is a case for an increase of 3-4 per cent (in prices), and we are considering to pass it on," JSW Steel Chief Financial Officer Seshagiri Rao told reporters on the sidelines of an event.
Also Read: JSW Steel production up 34% to 7.62 lakh tonne in Oct He said the private sector steel maker, which aims to achieve 8.5 MT production this fiscal, had achieved more than 50 per cent of the total target in the first six months. Rao, however, pointed out that output has been slower in the last two months due to iron ore shortage. "November capacity utilisation has come down relative to October because of non-availability of iron ore. We are still hopeful that category-A mines will be opened up," Rao said, adding only four mines are operating as of now.Mining operations in many producing regions like Karnataka, Goa and Odisha had been affected after the Supreme Court banned operations due to illegal mining. Subsequently, the apex court divided mines in three categories -- A,B and -C - and allowed opening of category A mines. The A category mines are those who are either free of any illegality or had committed marginal illegalities in their mining operations."There is a hearing scheduled on December 7 in the Supreme Court. We hope they will take a call on opening category B mines," Rao said. About production in the fourth quarter, Rao said it would depend on opening of category-A mines along with production of National Mineral Development Corporation. "What could happen in the next quarter is dependent on opening of more category A mines and NMDC producing normally. Today NMDC has reduced production to 4,50,000 tonne a month as
opposed to 1 MT."The company, which plans to raise USD 600 million through overseas borrowing by March to prepay a part of its rupee loan, doesn't have any plans to raise more money this fiscal, he added. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
