Jindal Steel & Power Set To Hike Prices To Offset Input Cost Pressures

Jindal Steel & Power Ltd. said it will again hike steel prices by Rs 2,000 a tonne in the coming few weeks to offset rising input costs.

“The steel plants have been doing okay, but not so well that they can absorb prices,” NA Ansari, chief executive officer (steel business) of JSPL, told BloombergQuint. “The coking coal prices have to be passed on.” This, he said, will be the second time the company hikes prices. The company previously raised prices by Rs 2,000 a tonne.

Higher prices of iron ore and coal have led to a Rs 3,500-4,000 per tonne increase in the cost of steel production, Ansari said, adding domestic prices of hot-rolled coil—predominant finished steel form—are trading at a 10-year high, rising 20 percent year-on-year.

JSPL, however, is not the only one to raise prices. Steel Authority of India Ltd. increased prices twice in the last 30 days.

Here are the other highlights from the conversation:

• Haven’t witnessed any slowdown in infrastructure activities due to NBFC issue.
• Demand to not be an issue for steel companies at least in the near term.
• Looking to export more products on the back of a weaker rupee.
• Will set up Odisha’s first private industrial park after completing ramping up of the Angul capacity.

Watch the entire conversation here.