JSPL Spotlights Harmful Impacts of Steel Price Hike

Jindal Steel and Power Limited (JSPL) says that further hike in steel commodity prices would make it not affordable to customers, which in turn may have serious bad impacts on the entire sector.

According to VR Sharma, Managing Director, JSPL, it expects no further hike in steel prices during the current month or at least until the third week of December. The steel products have witnessed recent hike in prices ranging from INR 4,000 to INR 6,000 per tonne, to cover the overall input costs, which have gone higher by up to INR 10,000 per tonne. The coking coal as well as scrap prices continues to remain at all-time highs. The international freight rates too are at their peak.

Sharma hoped that the freight and raw material costs would come down in the forthcoming months. The iron ore prices have already started to decline from its high levels. Further softening of coking coal prices should keep input costs down, thus avoiding the need for any further hike in steel prices, he added.

The global steel industry is likely to stabilize in times to come, mainly on account of projected 5-7% dip in steel consumption in China. The fall in the country’s property market will present challenging times ahead. The steel production in that country too has recorded declining trend, Sharma said.