JSW Steel price increase partial, may resort to more
JSW Steel, India's No. 3 producer of the alloy, has passed on only a part of the cost increases through a price hike in January and may look at future raises depending on supply-demand equation, a senior official told Reuters on Tuesday.
January 04, 2011 / 12:33 IST
JSW Steel, India's No. 3 producer of the alloy, has passed on only a part of the cost increases through a price hike in January and may look at future raises depending on supply-demand equation, a senior official told Reuters on Tuesday.
"Coke and iron ore prices were increased, which forced us to raise the price. We need to see how the market moves and then take a call for February and March," Director Jayant Acharya said over the telephone.On Monday, a source had told Reuters that the 7.8 mn tonne company has raised prices by 4 to 5% across various grades this month. Acharya expects an uptick in demand in January to March led by the infrastructure sector and due to lower inventory levels. "Inventory levels across our customer segments or across stock holders are not high. Therefore, I think demand will continue to be strong in this quarter," he said.He did not give inventory levels at JSW's plant but said it was "moderate".The company, which recently acquired a controlling stake in smaller, loss-making rival Ispat Industries, does not expect the acquisition to impact its output or sales in FY11, Acharya said."As of now, we are still in the process of open offer and (taking) other measures. Till those offers are fully closed, I don't think there is anything for now, which we'll be doing (for Ispat)," Acharya said when asked if Ispat's numbers would reflect on JSW's balance sheet.After acquiring 41.3% in Ispat last month, JSW Steel had made an open offer to buy up to 20% more at Rs 20.54 a share.At 11.26 am, JSW's shares were dowm 0.84% at Rs 1,181.65 in a weak Mumbai market. 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!
