Rise in global steel prices due to spike in raw material cost, says JSPL's VR Sharma

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The core sector data shows that steel output in April fell 20 percent from March levels. However, JSW Steel and Arcelor Nippon Steel have hiked their hot-rolled product prices by 3-4 percent. VR Sharma, MD of Jindal Steel and Power Ltd (JSPL) discussed this further.

The core sector data shows that steel output in April fell 20 percent from March levels. However, JSW Steel and Arcelor Nippon Steel have hiked their hot-rolled product prices by 3-4 percent. VR Sharma, MD of Jindal Steel and Power Ltd (JSPL) discussed this further.
“Steel consumption has increased worldwide. America is pulling a lot of demand, so is China and this has led to the overall increase in the raw material prices,” he said.
“Indian iron ore cost has gone up by Rs 4,000 per tonne, which is a huge jump in terms of input cost. So, this is the major reason today to increase steel prices,” Sharma mentioned.
The domestic market has a huge discount of 20-25 percent on steel prices. “The international steel price for hot-rolled coil is about USD 1,050-1,200 per tonne, in America it is USD 1,600-1,700 per tonne - but in America, there is duty against it of 25 percent. The domestic price is about USD 800 per tonne, so there is a difference of USD 200 per tonne,” he shared.
The MSME sector has still not picked up, he said.
“Low stock may increase the demand. Currently, the country is open for business for all seven days. The moment the lockdown is lifted and the constructional activities start, there will be a huge demand coming in or pent-up demand coming in,” he stated.
He continues to stick to the sales volume guidance of 8 mtpa.
For the full interview, watch the accompanying video.

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