The Hindu Business Line : JSW Steel in price cutting spree

NEW DELHI: JSW Steel seems to be on a price cutting spree as it has decided to cut prices of its products a second time in recent months, the first cut being the one effected last month. The decision follows softening of demand in global markets, partly due to the ongoing financial crisis.

“Steel prices have corrected internationally, a trend which should be reflected in the domestic market. We will revise our prices downward but have not yet decided on the amount,'' JSW Steel President (Marketing) Jayant Acharya told PTI. Last month, the company had cut the prices of its products by up to Rs 2,000. Financial turmoil in the international markets had added more pressure, leading to a further decline in steel prices, he said and added that rates may increase by next month.

However, Acharya maintained, at present, domestic steel prices were considerably lower than international rates. “Earlier, the government was forcing steel companies to cut prices to contain inflation. But the dynamics slowly changed. There is obvious s lowdown globally, including India. Tremors of the recent financial crisis were felt across the globe.

In this situation, steel price has to come down,'' Karvy Comtrade's G Harish said. He also said the bottom line of the steel producers were well protected due to easing input pressure as iron ore and coking coal prices had declined. “Thus, companies ca n successfully afford to sell their products at lower levels,'' he added.

Last week, company's Vice-Chairman and Managing Director Sajjan Jindal had said steel prices would be coming down in the domestic market following the softening trend globally. Unconfirmed reports suggested that the country's largest steel producer SAIL may also cut prices of its flat products. – PTI

Prev: Rupee recovers from a low of 47.22
Next: SEC extends ban on short selling

Business Line | NUS Index |