The Hindu Business Line : JSW to cut steel prices this month

Mumbai, Oct. 15 There could be another round of price cut of steel, with the Vice-Chairman of JSW Steel, Mr Sajjan Jindal, stating that the company could slash prices this month end in the wake of softening global prices and weakening demand.

The company had cut prices by Rs 2,000 a tonne last month.

Speaking on the sidelines of an Assocham press conference here, Mr Jindal said there was every likelihood of a price cut as “we track global prices”, which have corrected 35 per cent from its peak.

No Output Reduction

While JSW had no intention to cut production in the wake of price cut and slowing demand, the company has postponed commissioning of its 3 million tonne blast furnace at Bellary by two months, to December.

The domestic demand continues to be strong, though there is a possibility of being saddled with a higher inventory for a few months, he said, adding that there was no cause of worry on margins as input cost too had come down correspondingly. On exports, Mr Jindal said steel majors had represented to the Government the need to scrap export duty and hoped that the Government would respond the way the steel companies supported it in holding prices during difficult times.

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